Veeco Instruments and Monarch Labs Sign Strategic Partnering Agreement New Quasi-Static Tester for GMR Device Performance Expands Veeco's Metrology Offering.

PLAINVIEW, NY--(BUSINESS WIRE)--November 5, 1999--

Veeco Instruments Inc. (NASDAQ:VECO) and Monarch Labs, Inc., have executed a worldwide partnership agreement for the marketing, distribution and support of magnetic performance test equipment. This agreement, combined with the recent acquisition of OptiMag, Inc., marks the continued expansion of Veeco's metrology line for the data storage industry.

Monarch's QSW(TM) is a fully automated test system for characterizing the magnetoresistance of bulk films and patterned devices. The instrument monitors the device performance of giant magneto-resistive (GMR) heads used in high-density disk drives, providing essential feedback for process control and device performance improvement.

Veeco's Metrology Group will add Monarch's QSW and other quasi-static test products to its metrology family, which currently includes optical profilers, atomic force microscopes (AFMs), stylus profilers, optical defect review stations, and X-Ray fluorescence systems.

Edward H. Braun, Chairman, President and CEO of Veeco, commented, "Monarch's device testing capabilities ideally fit our strategy to provide one-stop metrology and test support for our data storage customers. We are pleased to add this technology, as it both complements and expands our metrology family."

Dennis Cahalan, President of Monarch Labs, said, "Our agreement with Veeco allows us to rapidly expand our channels of distribution and to draw upon Veeco's excellent worldwide support network. By combining our strengths, we look forward to fulfilling new testing needs for next-generation head and drive designs."

Monarch Labs, Inc., located in Longmont, CO., develops and manufactures automated quasi-static test systems for research and manufacturing applications in the data storage industry.

Veeco Instruments Inc., headquartered in Plainview, New York is a worldwide leader in metrology tools for the data storage and semiconductor industries, and process equipment etch and deposition tools for the data storage industry. Manufacturing and engineering facilities are located in New York, California and Arizona. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of the Company's products, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the cyclical nature of the data storage and semiconductor industry, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management's Discussion and Analysis sections of the Company's Report on Form 10-K and Annual Report to Shareholders.