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Veeco Look to Maximise Growth in Data Storage and HB-LED Industries

Veeco Instruments Inc., announced today that it has formed a Process Equipment Group to maximize growth opportunities in the data storage and HB-LED industries.

Edward H. Braun, Chairman and Chief Executive Officer of Veeco, commented, "Our Process Equipment Group is a $225 million per year world leader in deposition and etch technologies, focused on the high-growth data storage and high-brightness LED markets. We expect revenue growth in this business to exceed 15% in 2006, as market demand for converged consumer electronics with embedded storage and high brightness LED backlit displays broadens, and Veeco introduces new Process Equipment solutions aligned to each market. As capacity expands in hard disk drive, we have solutions for the emerging technology changes required by perpendicular recording and smaller form factors. In HB-LED our customers' roadmaps are demanding brighter films and higher levels of throughput. Veeco is uniquely focused on meeting these technology and productivity requirements on a worldwide basis."

In establishing the Process Equipment Group, Veeco has appointed Robert P. Oates, formerly in charge of Veeco's Data Storage Operations (Ion Beam and Slider Products) as Senior Vice President, Process Equipment Operations. Now, in addition to the Ion Beam/Slider product lines, Mr. Oates will oversee Veeco's Epitaxial Operations (Metal Organic Chemical Vapor Deposition and Molecular Beam Epitaxy products). Mr. Oates joined Veeco's predecessor company in 1976 and has served in many operational and financial roles at the Company.

Don Kania, Ph.D., Veeco's President and Chief Operating Officer, commented, "Veeco's senior management team is now aligned around our two primary lines of business - Process Equipment, led by Bob Oates, and Metrology and Instrumentation, led by Jeannine Sargent. Along with providing technology and process solutions, the new Process Equipment organization will emphasize the development of critical technologies to be implemented on standard product platforms across the organization. As a result, our customers will see leadership products and processes with improved time-to-market, strengthened customer process support, and better reliability. By leveraging our supply chain, Veeco's shareholders will benefit from improved operational efficiencies over a larger critical mass of products. We have made tremendous progress in improving the operational excellence and customer satisfaction of our data storage products under Bob Oates' leadership, and want to extend this success to all of our Process Equipment technologies."

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