Arima Selects Veeco MOCVD Systems To Support Production Ramp

Veeco Instruments Inc. (Nasdaq: VECO) announced today that Arima Optoelectronics Corporation (AOC), a world-leading manufacturer of LED epitaxial wafers and chips headquartered in Taiwan, purchased multiple TurboDisc® K465i Gallium Nitride (GaN) and E475 Arsenic Phosphide (As/P) Metal Organic Chemical Vapor Deposition (MOCVD) Systems during the recently completed second quarter.

Marco Kuo, President of Arima Optoelectronics, said, “We have selected Veeco’s MOCVD systems because of our experience with their production-proven reliability and high productivity, which results in higher capital efficiency. Most of the systems will be installed in Shanxi Province, Northern China, where we have entered into an agreement with the local government to form a new joint venture company to manufacture LEDs for backlight applications.”

Bill Miller, Ph.D., Senior Vice President, General Manager of Veeco's MOCVD Operations, commented, “We are pleased to expand our long-standing relationship with Arima, and to be chosen to support their production ramp.”

With superior wavelength uniformity and excellent run-to-run repeatability, the production-proven K465i extends Veeco's lead in capital efficiency - the number of good wafers per day for each capital dollar - for high volume LED manufacturers. The K465i provides ease-of-tuning for fast process optimization on wafer sizes up to 8 inches and fast tool recovery time after maintenance. The TurboDisc E475 As/P MOCVD System is engineered for high-volume production of red, orange and yellow HB-LEDs, and offers a level of process control and reliability unmatched by competing MOCVD technologies.

About Arima

Arima Optoelectronics Corp. is engaged in the research, development, manufacture and distribution of light emitting diodes (LED) wafers and LED chips. The Company's LED products are mainly used in displays, automobiles, consumer electronics, communication products, information products and indicator lamps. Please visit http://www.aocepi.com.tw/html/index.asp for more information.

About Veeco

Veeco Instruments Inc. designs, manufactures, markets and services enabling solutions for customers in the HB-LED, solar, data storage, semiconductor, scientific research and industrial markets. We have leading technology positions in our three businesses: LED & Solar Process Equipment, Data Storage Process Equipment, and Metrology Instruments. Veeco's product development, marketing, engineering and manufacturing facilities are located in New York, New Jersey, California, Colorado, Arizona, Massachusetts and Minnesota. Global sales and service offices are located throughout the U.S., Europe, Japan and Asia Pacific. Please visit www.veeco.com for further information.

To the extent that this news release discusses expectations 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 risks 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, 2009 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

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