Veeco Receives $1.7 Million Order from California NanoSystems Institute at UCLA.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq: VECO), announced that The California NanoSystems Institute (CNSI) at The University of California, Los Angeles (UCLA) has purchased $1.7 million of atomic force and scanning probe microscope systems (AFM/SPMs) and optical profilers for use in the institute's multi-user core laboratories performing nanoscience research. The fourth quarter 2006 order included Veeco's new "high value/low cost" Caliber[TM] SPM, a Dimension[TM] 5000 high performance AFM, and a Wyko[R] NT 9300 high performance Optical Profiler. In addition, the CNSI is the first customer to purchase Veeco's new, integrated, BioScope II Confocal AFM Package, which features open optical and physical integration between a laser scanning confocal microscope and an AFM, ideal for versatile biological imaging applications.

J. Fraser Stoddart, director of the CNSI, who holds UCLA's Fred Kavli Chair in Nanosystems Sciences, commented, "Veeco has always been a great partner to CNSI in our nanotechnology research. These latest purchases further position CNSI as one of the world's leading nanotechnology centers focused on the advancement of cell biology, molecular and materials sciences. These tools offer us state-of-the art 3D surface metrology and will be an important asset to the work conducted at the Nano and Pico Characterization core facility at CNSI to visualize surfaces and molecules, as well as nanostructures and devices, down to the level of individual atoms."

The innovative, high-performance BioScope II AFM has been engineered specifically to facilitate advanced bioscience. The revolutionary design of the BioScope II supports the full functionality of today's most powerful inverted optical microscopes, including confocal and TIRF (total internal reflection fluorescence) systems, thus further extending the latest research capabilities in the life sciences.

Jeannine Sargent, Executive Vice President, Veeco Metrology, commented, "We are gratified that CNSI continues to place their trust in Veeco's AFM and optical technologies. We are particularly pleased that CNSI is the first customer for Veeco's BioScope II Confocal AFM Package offering CNSI's users simultaneous fluorescence and atomic force microscopy and enabling tremendous flexibility in their biological and nano-medicine research. In addition, having CNSI as an early purchaser of several of our newest AFM and optical products speaks to the relevance of these instruments to the worldwide university nanotechnology research community. Veeco's EasyAFM[TM] and industry's broadest selection of AFM functionality on a common platform will enable a high level of productivity by the hundreds of users of the CNSI core nanotechnology lab." Veeco is the world leader in atomic force and scanning probe microscopy, with an installed base of over 7,500 systems at university and research/nanotechnology centers worldwide.

About CNSI at UCLA

The California NanoSystems Institute (CNSI) is a research center at UCLA whose mission is to encourage university collaboration with industry and to enable the rapid commercialization of discoveries in nanosystems. CNSI members who are on the faculty at UCLA represent a multi-disciplinary team of some of the world's preeminent scientists. The work conducted at the CNSI represents world-class expertise in five targeted areas of nanosystems-related research including Renewable Energy; Environmental Nanotechnology and Nanotoxicology; NanoBiotechnology and Biomaterials; NanoMechanical and NanoFluidic systems; and NanoElectronics, Photonics and Architectonics. The CNSI's new building on the campus of UCLA is home to eight core facilities which will serve both academic and industry collaborations. The CNSI is a joint enterprise between UCLA and UC Santa Barbara. UCLA is California's largest university, and ranks among the top five universities and colleges nationally in total research-and-development spending. UCLA employs more than 27,000 faculty and staff, has more than 350,000 living alumni and has been home to five Nobel Prize recipients. For additional information about the CNSI please visit www.cnsi.ucla.edu.

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 semiconductor, data storage, HB-LED wireless and scientific 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.