Veeco Instruments and Picogiga International Partner to Advance Gallium Nitride (GaN)-on-Silicon Technology

Veeco Instruments Inc. (NASDAQ: VECO) and PicogigaInternational, a division of the Soitec Group (Euronext, Paris), todayannounced that they have entered into a joint development program(JDP) designed to advance gallium nitride (GaN)-on-silicon technologyto meet emerging market needs. By leveraging Picogiga's leadership inengineered substrates and compound semiconductors, along with Veeco'sexpertise in molecular beam epitaxy (MBE), the joint effort isexpected to speed the volume production of GaN-on-silicon substratesfor commercialization into a wide range of high-end wirelessapplications.

Under the terms of the agreement, the two companies will team tocreate the first industrial MBE reactor optimized for use onPicogiga's patented GaN-on-silicon process. To speed this endeavor,engineers from Picogiga International will share their expertise inGaN MBE technology with Veeco's MBE system experts. The initial workwill take place in Veeco's Process Integration Center in Saint Paul,Minn. Upon completion, the new GEN200(TM) system will be delivered andinstalled at Picogiga's production facility in Les Ulis,France--enabling the company to produce up to 6-inch GaN-on-siliconepi wafers.

According to Jean-Luc Ledys, chief operating officer of Soitec'sPicogiga division, the intent of this agreement is to pave the way forGaN-on-silicon substrates to become a competitive solution forwireless devices such as next-generation high-electron-mobilitytransistors (HEMTs). "By accelerating the production ramp ofhigh-quality GaN-on-silicon substrates, we can ensure that customershave access to the volume quantities needed to enable their emergingdevices for wireless-infrastructure and other high-speedapplications."

Dick Wissenbach, Senior Vice President of Veeco CompoundSemiconductor, commented, "The opportunity to develop GaN-on-siliconillustrates the strength of Veeco's MBE. Veeco's vast productionknowledge of GaN-based devices, the silicon-style production platformof the MBE equipment, and the development and capacity capabilities ofthe Process Integration Center make this a perfect match." Wissenbachadded, "Our Process Integration Center, with its installed base ofGEN200 systems and in-house team of MBE experts was designed to affordmanufacturers rapid hardware testing, process development and bridgecapacity."

In recent years, GaN-on-silicon has shown great promise for RF andmicrowave components aimed at the wireless industry, particularly forthe HEMTs used in high-power RF applications. GaN increases the outputpower of such devices, while silicon offers better thermalconductivity, lower procurement costs and larger diameter wafers thantraditional GaN substrates. By combining the performance benefits ofGaN with the material and cost advantages of large-area silicon,Picogiga can help ensure the commercial availability of GaN-basedsubstrates for a growing range of devices and applications.

About Veeco Instruments

Veeco Instruments Inc. is a leading supplier of combined MBE andMOCVD epitaxial equipment and provides solutions for nanoscaleapplications in the worldwide data storage, LED/wireless,semiconductor and scientific research markets. Our Metrology productsare used to measure at the nanoscale and our Process Equipment toolshelp create nanoscale devices. Veeco's manufacturing and engineeringfacilities are located in New York, New Jersey, California, Colorado,Arizona and Minnesota. Global sales and service offices are locatedthroughout the United States, Europe, Japan and Asia Pacific.Additional information on Veeco can be found at http://www.veeco.com/

About Picogiga International

Soitec's Picogiga division concentrates on the development andmanufacture of compound semiconductor substrates. Epitaxial technologyplays a key role in Soitec's strategy of leveraging its Smart Cut(TM)technology to provide advanced engineered substrate solutions to thecompound material world. For more information, visit the company'swebsite located at www.picogiga.com

About The Soitec Group

The Soitec Group is the world's leading innovator and provider ofthe engineered substrates that serve as the foundation for today'smost advanced electronic products and nanotechnologies. Headquarteredin Bernin, France, the company manufactures its comprehensiveportfolio of engineered substrates, including SOI and strained SOI,using Soitec's proprietary Smart Cut(TM) technology--the de factoindustry standard. With its strong global presence, patentedtechnology and industry-leading production capacity, Soitec is helpingto drive the performance and power advantages that are key to thesmaller, more power-efficient and increasingly mobile electronicproducts favored by consumers worldwide. Both shares and twoconvertible bonds are listed on the Nouveau Marche of Euronext Paris.For more information, visit the company's website located atwww.soitec.com

Veeco disclaimer

To the extent that this news release discusses expectations aboutmarket condition, market acceptance and future sales of Veeco'sproducts, Veeco's future financial performance or disclosures, orotherwise makes statements about the future, such statements areforward-looking and are subject to a number of risks and uncertaintiesthat could cause actual results to differ materially from thestatements made. These factors include the challenges of continuingweakness in end market conditions and the cyclical nature of thecompound semiconductor/wireless, data storage, semiconductor andresearch markets, risks associated with integrating acquiredbusinesses and the acceptance of new products by individual customersand by the marketplace and other factors discussed in the BusinessDescription and Management's Discussion and Analysis sections ofVeeco's Annual Report on Form 10-K, subsequent Quarterly Reports onForm 10-Q and current reports on Form 8-K.

Smart Cut and UNIBOND are trademarks of S.O.I.TEC Silicon OnInsulator Technologies; GEN200 is a trademark of Veeco Instruments.