Epistar Approve Veeco MOCVD System for Volume Production of LEDs

Veeco Instruments Inc. (Nasdaq: VECO), announced today that Epistar Corporation, headquartered in Taiwan, has recently qualified Veeco's TurboDisc(R) K465i(TM) gallium nitride (GaN) Metal Organic Chemical Vapor Deposition (MOCVD) System for high volume light emitting diode (LED) production.

Dr. M.J. Jou, President of Epistar, commented, "Ramping to production quickly and maintaining high throughput is critical to our success. Veeco enabled us to qualify the K465i rapidly and it provides the automation required to produce highly uniform LEDs with minimal downtime. The K465i provides Epistar the ease-of-use and system availability to meet our growing production requirements."

Bill Miller, Ph.D., Senior Vice President, General Manager of Veeco's MOCVD Operations commented, "As a result of this successful qualification, we currently expect to ship a significant number of tools to Epistar this year. We are excited that we have been chosen to support their volume capacity ramp in 2010. This is an important milestone for Veeco as we continue to build our Taiwan installed base."

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.

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