Veeco Introduces Dimension Atomic Force Profiler; New High-Performance, Non-Destructive Metrology Solution for In-Line Semiconductor Process Control.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq: VECO), announced today that it has introduced the Dimension(R) Atomic Force Profiler (AFP), designed for a broad range of metrology applications in the semiconductor fab. The fully integrated Dimension AFP is Veeco's next generation system, combining the superb resolution of an atomic force microscope (AFM) with the long-scan capability of an atomic force profiler to offer semiconductor manufacturers the highest performance, fastest AFM solution for in-line process control.

Veeco's new AFP is ideal for some of today's most challenging in-fab metrology applications such as chemical mechanical planarization (CMP), etch depth, step heights, roughness and die maps for advanced technology nodes.

"The Dimension AFP is the world's only AFM single-tool fab solution, designed for both CMP and etch metrology at 65nm," stated Jeannine Sargent, Executive Vice President, Veeco Metrology & Instrumentation. "In addition to being gauge capable, the Dimension AFP has twice the throughput of previous AFMs, thereby speeding critical device performance monitoring in such process steps as STI (shallow trench isolation) CMP and STI Etch. Veeco is the clear market leader in AFM, having sold over 300 automated AFMs to semiconductor customers worldwide. This new high-performance system further strengthens our in-fab footprint."

Paul Clayton, Veeco's Automated AFM Business Unit Manager, commented, "As semiconductor linewidths continue to shrink, Veeco's state-of-the-art, field-proven AFM technology allows within-die, non-destructive feature measurement, which is critical as the correlation to test features breaks down around the 65nm node. Results from our customer testing have shown that the Dimension AFP's increased productivity can deliver the required critical in-line monitoring solutions for advanced technology nodes."

With extensive automation and fab-ready connectivity, the versatile AFP represents a truly complete solution for in-line CMP and Etch process monitoring and control. Like all Veeco instrumentation, the Dimension AFP is backed by Veeco's worldwide service and support organization.

The Dimension AFP joins Veeco's broad suite of automated surface metrology solutions:

--The Dimension X3D: gauge-capable, automated metrology system to deliver three-dimensional (X, Y, and Z), in-line characterization of critical dimension (CD) feature shape control for 65nm and 45nm advanced process development. This system gathers detailed data on crucial CD elements encountered in lithography and advanced etch processing including gate, STI, dual-damascene structures, sidewalls and line-edge variation.

--The Dimension X: The Dimension X is designed specifically to address the semiconductor industry's need for higher-resolution etch depth metrology. It enables chipmakers to measure etch related structures that are 65nm and below for depth uniformity control in high production environments. This system has the ability to take repeatable, in-line measurements of shallow trench isolation (STI) and gate structures, as well as contacts and vias in high aspect ratio depth metrology without damaging the device or sacrificing a wafer for cross-sectioned measurements.

--The Dimension Vx 340: The Dimension Vx340 Atomic Force Profiler (AFP) automated metrology system for characterization and control of multiple processes. It is a versatile system that is designed to replace standard profilers with improved AFM resolution and faster throughput.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, HB-LED/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco's manufacturing and engineering facilities are located in New York, New Jersey, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market condition, market acceptance and future sales of Veeco's products, Veeco's future financial performance, future disclosures, 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 challenges of continuing weakness in end market conditions and the cyclical nature of the compound semiconductor/wireless, data storage, semiconductor and research markets, risks associated with integrating acquired businesses and 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 Veeco's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K . Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.