WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 31, 2007--Veeco Instruments Inc. (Nasdaq: VECO) announced today that its Metal Organic Chemical Vapor Deposition (MOCVD) technology enabled an important recent advancement in solar cell efficiency. On December 5, 2006, the U.S. Department of Energy (DOE) announced that Spectrolab, Inc. has achieved a world record concentrator solar cell conversion efficiency of 40.7 percent. This solar cell conversion efficiency was achieved using a Veeco TurboDisc(R) As/P MOCVD System, which deposits epitaxial films. Spectrolab, Inc. is a wholly owned subsidiary of The Boeing Company.

The 40.7 percent efficient cell was developed using a multi-junction solar cell structure. This type of cell achieves a higher efficiency than single junction cells by capturing more of the solar spectrum and utilizing it more efficiently. The solar cells are manufactured in a single epitaxial growth process, which requires excellent control and repeatability from the MOCVD system.

"Veeco congratulates Spectrolab on its record efficiency. We look forward to teaming with Spectrolab for continued solar cell efficiency improvements," commented Piero Sferlazzo, Vice President, General Manager of Veeco's MOCVD Operations.

According to the DOE, attaining a 40 percent efficient concentrating solar cell means having another technology pathway for producing cost-effective solar electricity. This breakthrough may lead to solar systems with an installation cost of only $3 per watt, or less, producing electricity at a cost of 8-10 cents per kilowatt/hour, making solar electricity a more cost-competitive and integral part of our nation's energy mix. Almost all of today's solar cell modules do not concentrate sunlight but use only what the sun produces naturally, what researchers call "one sun insolation," which achieves an efficiency of 12 to 18 percent. However, by using an optical concentrator, sunlight intensity can be increased, producing more electricity from a single solar cell.

Engineered for the high-volume production of compound semiconductor materials, Veeco's TurboDisc As/P tools are quickly being adopted by the industry as the "tool of choice" for high volume production of devices such as solar cells, red, orange and yellow HB-LEDs, laser diodes, pHEMTs and HBTs. The system offers a level of process control and reliability unmatched by competing MOCVD technologies. With integrated RealTemp(R) 200 technology for direct wafer temperature control and fast gas switching for strict control of interface abruptness, these technically advanced systems provide superior material quality and process efficiency.

About the Solar America Initiative

Reaching 40 percent efficiency helps further President Bush's Solar America Initiative (SAI) goals, which aims to win nationwide acceptance of clean solar energy technologies by 2015. By then, it is intended that America will have enough solar energy systems installed to provide power to one to two million homes, at a cost of 5 to 10 cents per kilowatt/hour. The SAI is also a key component of President Bush's Advanced Energy Initiative, which provides a 22 percent increase in research and development funding at DOE and seeks to reduce our dependence on foreign sources of oil by changing the way we power our cars, homes and businesses. For more information, visit the SAI website at: http://www.eere.energy.gov/solar/solar_america.

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.

CONTACT: Veeco Instruments Inc.
Investor:
Deb Wasser, 516-677-0200 x 1472
SVP Investor Relations
or
Trade Media:
Fran Brennen, 516-677-0200 x 1222
Senior Director of Marcom

SOURCE: Veeco Instruments Inc.