WOODBURY, N.Y., Jul 24, 2006 (BUSINESS WIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced that it received an order during the second quarter of 2006 for its new NEXUS(R) Physical Vapor Deposition (PVD) Multi-Target Sensor tool from a leading manufacturer of thin film magnetic heads. Veeco's NEXUS PVD multi-target system is used to deposit high-quality, extremely uniform, thin film multi-layer stacks and will be used by the customer to manufacture high areal density Tunneling Magneto-Resistive (TMR) heads.

Robert P. Oates, Senior Vice President, Veeco Process Equipment, commented, "Veeco has designed our NEXUS product line to be a turn-key solution for our thin film magnetic head customers' front-end wafer process. The NEXUS platform means better cost of ownership, more cost effective process development and faster time to market for new applications. The NEXUS-PVD multi-target system is part of Veeco's expanded PVD/ALD product line which respond to the industry's move to high areal density perpendicular recording technology."

Key technical features of the NEXUS PVD Multi-Target include its in-situ ion source for 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 platform with complementary Veeco technologies such as ion beam deposition, ion beam etch and atomic layer deposition.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide data storage, semiconductor, 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 conditions, 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 volatility in end market conditions and the cyclical nature of the data storage, semiconductor, 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 for the year ended December 31, 2005, 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.

SOURCE: Veeco Instruments Inc.

Veeco Instruments Inc. Debra Wasser, 516-677-0200 x1472 SVP of Investor Relations & Corp. Comm. or Trade Media Contact: Fran Brennen, 516-667-0200 x1222 Senior Director of Marcom