Veeco Receives Order for PVD System for Advanced Sensor Development.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq: VECO) announced today that it received an order for its NEXUS[R] Physical Vapor Deposition (PVD) Multi-Target System from a leading data storage company. The system will be used in advanced research to develop next generation current perpendicular to plane giant magneto-resistive (CPP-GMR) heads.

Future generations of recording head technology are being developed by the thin film magnetic head industry to achieve continued advances in areal density by using specialized materials, optimized film properties and tightly controlled film interfaces. Veeco's NEXUS PVD Multi-Target System employs a unique combination of advanced technologies, including velocity profiling, an in-situ RF magnetron and a linear ion source, which enable precise tailoring of film structure.

Robert P. Oates, Executive Vice President, Veeco Process Equipment, commented, "As the industry develops advanced recording heads, our customers are adopting the multi-generational NEXUS PVD Multi-Target System as a critical enabler for new technologies. The system provides the industry's highest throughput and features a smaller footprint, making it the lowest cost of ownership PVD tool available today."

"The PVD Multi-Target System offers key advantages for advanced sensor technology, particularly in multi-layer film structure," James T. Jenson, Veeco's Vice President, General Manager of PVD/ALD Equipment said. "It is also part of our NEXUS platform, which provides a turn-key solution for our thin film magnetic head customers' front-end wafer processing needs. By integrating the hardware and software on the NEXUS platform, our customers realize a lower cost of ownership, more cost-effective process development and faster time to market for new applications."

Key technical features of the NEXUS PVD Multi-Target System include its in-situ ion source for advanced interface control, surface modification and oxidation, nano-lamination for complex alloy formation and velocity profiling for superior film uniformity. Designed as a robust production system, the tool incorporates "best in class" technology and components. Further, as part of the NEXUS family, it can be integrated on a common hardware and software platform with complementary Veeco technologies such as ion beam deposition, ion beam etch, atomic layer deposition and reactive sputtering.

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.