Veeco Receives $5.0 Million AFM Metrology Order from Leading Semiconductor Device Manufacturer; Largest Order To-Date for 300mm Fab Tool Set.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq:VECO) announced today that it received a multi-unit $5.0 million order for atomic force microscopes (AFMs) from a leading global integrated circuit manufacturer. This is the largest AFM metrology order Veeco has received from a single customer for their 65nm, 300mm fab toolset. The customer purchased the complete suite of Veeco's Dimension family of metrology products: the X3D, X and Vx 340, for in-line production applications well as in their advanced technology development lab.

Don Kania, Ph.D., President of Veeco, commented, "Veeco continues our leadership position in etch and chemical mechanical planarization (CMP) metrology where we have been the chosen toolset for 90 nm measurements. Penetrating the 65nm generation is the next step for our technology."

Paul Clayton, V.P., GM, Automated AFMs, added, "Veeco's "Fab-Wide" AFM metrology solutions are the only choice for our customers' demanding 300mm applications for etch, CMP, lithography, critical dimension (CD) metrology and in advanced technology development centers. In a competitive environment, Veeco's AFM technology leadership, experience and performance wins again."

Veeco's product line now features ease-of-use software that incorporates standardized, multi-application analysis as well as the capability to perform sophisticated and detailed evaluations. This enables an acceleration from yield and process development to complete in-line production monitoring within a fab. All systems combine the lowest noise AFM capability, industry-leading repeatability and accuracy, and exclusive probe technology which are critical to future development nodes. Veeco, with ten years experience selling AFMs to semiconductor fabs worldwide, now has an installed base of over 200 automated AFM tools.

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.