Transaction Another Example of Veeco's Commitment to the Fast-Growing CIGS Thin Film Marketplace

Veeco Instruments Inc. (Nasdaq: VECO) announced today that it has completed a transaction to purchase certain assets of DayStar Technologies, Inc. (Nasdaq: DSTI), in order to accelerate its penetration of the rapidly growing copper, indium, gallium, selenium (CIGS) solar market. Veeco has purchased selected equipment, taken over leased facilities and hired DayStar's R+D group in Clifton Park, New York.

David Bruns, Senior Vice President, General Manager, Veeco Solar Equipment commented, "The creation of a "Solar Process Development Center" will accelerate Veeco's position as a leading integrated equipment provider to the rapidly growing CIGS solar market. We have brought on board a team of highly qualified CIGS technology specialists who bring to Veeco years of CIGS process know-how on a range of glass and flexible substrates. These CIGS process development specialists will now work in tandem with our design team to help our customers achieve the lowest cost of ownership through process and hardware optimization on Veeco's suite of equipment."

John Peeler, Veeco's Chief Executive Officer, added, "This transaction is another example of Veeco's commitment to the fast-growing CIGS thin film marketplace. In the past year we have rapidly expanded our CIGS product line to include integrated thermal deposition sources, our FastFlex™ platform for flexible CIGS solar cells and our FastLine™ platform for CIGS on glass. Based upon the broad end market applications for CIGS in solar farms, building integrated and portable devices, combined with CIGS' forecasted competitiveness on a cost/watt basis, we see a $750M equipment market opportunity for CIGS by 2011."

Veeco Instruments Inc. manufactures 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 manufacturing and engineering 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 APAC.

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