Veeco Pursues Next-Generation Deposition Technologies.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq:VECO) today announced that it has launched an advanced engineering program to develop a next-generation data storage thin film head sensor deposition tool, which will be ideal for the technology transition to perpendicular recording. To lead this program, Veeco has hired Dr. Piero Sferlazzo as Vice President, General Manager for its advanced technologies deposition platform. Veeco's goal is to create a new tool to integrate physical vapor deposition (PVD), atomic layer deposition (ALD) and molecular beam deposition (MBD) to allow deposition of new materials.

According to Don Kania, Ph.D., President of Veeco, "Veeco recognizes that our data storage customers are looking for next-generation deposition solutions that will enable their move to current-perpendicular plane (CPP) head technology. It is Veeco's intention to develop tools that incorporate various types of deposition in order to meet this market requirement. Our appointment of Dr. Sferlazzo, in addition to a multi-million dollar R&D investment, are indicative of our commitment to advancing these technologies."

Prior to joining Veeco, Dr. Sferlazzo successfully founded a number of companies including Fluens, Opnetics (now part of Unaxis), Klee (now part of Astex Corporation) and Krytek (now part of Core Systems). He has many years of experience in the development and management of process equipment for the semiconductor, data storage, and telecom industries. Dr. Sferlazzo has a Ph.D. in Physics from Brandeis University and graduated from the University of Florence, in Italy.

Dr. Sferlazzo commented, "Veeco has been very successful over the years in offering complete process solutions over a broad range of technologies. We want to continue this tradition, and deliver superior value to our customers through process excellence, next generation technology solutions and state of the art equipment design."

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide, data storage, compound semiconductor/wireless, semiconductor 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, 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 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.