Veeco Releases Next-Generation Optical Metrology System for Semiconductor Packaging Inspection.

WOODBURY, N.Y. -- Veeco Instruments Inc. (Nasdaq: VECO), today announced the release of its latest generation of industry-leading SP products for backend semiconductor metrology. The Wyko[R] SP9900[TM] Surface Profiling System performs critical measurements that support high yield and device reliability for advanced high-density interconnect (HDI) packages. The new tool has garnered strong interest, with two units already in production at industry-leading semiconductor contract assembly and test services (SATS) vendors in Japan and Taiwan.

"Flip chip packaging continues to be the process of choice for rapidly growing flash memory devices, such as digital cameras and MP3 players, as well as for small-factor, high-density applications like mobile phones, computers and PDAs," says John Wissinger, VP/Business Unit Manager, Veeco Optical Industrial Metrology. "Many devices that previously used wire bonding or other connection methods are transitioning to ball grid arrays (BGA) for improved reliability and cost. Advances in packaging parallel the semiconductor roadmap, and package quality is increasingly critical to producing defect-free devices as tolerances increase. Veeco sees a significant long term growth opportunity in partnering with chipset designers and SATS vendors to address their most challenging metrology requirements - which are well addressed by our technology."

The SP9900 monitors critical parameters in multilayer organic panels manufactured for flip chip pin grid array (FC-PGA) and flip chip ball grid array (FC-BGA)-type packages. The new tool extends the success of the Wyko SP product family, delivering faster measurements, increased sample access, and the ability to measure the newer generation panel sizes up to 600x600mm, all without increasing the overall tool footprint compared with previous generation SP tools. Measurements include critical dimensions, trace heights, via depths, and roughness of the layers in laminate packages, as well as analysis of solder bump arrays, all crucial to quality and end device performance. A patent-pending dual-illumination-source interferometric method delivers sub-angstrom resolution for surface height measurements. A simple-to-use, "production interface" allows integration into high-volume manufacturing environments, providing minimal operator-to-operator variability while delivering an advanced engineering mode for process development.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide 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.