Event Brief of Q1 2008 Veeco Instruments Inc. Earnings Conference Call - Final.

PARTICIPANTS

. Debra Wasser, Veeco Instruments Inc., SVP IR & Corporate Communications . John Peeler, Veeco Instruments Inc., CEO . Jack Rein, Veeco Instruments Inc., CFO . Brett Hodess, Merrill Lynch, Analyst . Timothy Arcuri, Citigroup, Analyst . Bill Ong, American Technology Research, Analyst . Mark Moskowitz, JPMorgan, Analyst . Matt Petkun, D. A. Davidson & Co., Analyst . Nick Tishchenko, Global Crown Capital, Analyst . Mark Miller, Brean Murray, Carret & Co., Analyst

OVERVIEW

For 1Q08, VECO reported sales of $102.3m, GAAP net loss of $1.6m or $0.05 per share, and EPS (excluding amortization and restructuring charges) of $0.09. For Full-Year 2008, anticipates revenue of $440m. For 2Q08, Co. expects revenue of $102-110m, Non-GAAP EPS of $0.05-0.11 (excluding amortization of $2m), and GAAP EPS between loss of $0.02 to a profit of $0.07.

FINANCIAL DATA

A. Key Data From Call 1. 1Q08 GAAP loss per share = $0.05. 2. 1Q08 EPS (excluding amortization and restructuring charges) = $0.09. 3. 1Q08 GM = 41.7%. 4. 1Q08 Opex (excluding restructuring and asset impairment charges and amortization) = $37.4m. 5. 1Q08 Capex = $3.1m. 6. 1Q08 DSO = [68]. 7. 1Q08 inventory = $105.2m. 8. At 03/31/08, cash and equivalents = $114.4m. 9. Full-Year 2008 revenue guidance = $440m. 10. 2Q08 revenue guidance = $102-110m. 11. 2Q08 Non-GAAP EPS guidance = $0.05-0.11 (excluding amortization of $2m). 12. 2Q08 GAAP EPS guidance = loss of $0.02 to a profit of $0.07.

PRESENTATION SUMMARY

S1. 1Q08 Performance (J.P.) 1. Comments: 1. In line revenues and better than expected earnings, due to: 1. Restructuring and cost containment efforts. 2. Good progress on GM improvements. 2. On track to improve Co.'s performance on top and bottom line in 2008. 2. Financials: 1. Revenue, $102m. 1. In line with guidance of $98-105m. 2. Up 3% over 1Q07. 2. Bookings, $109.3m. 1. At midpoint of guidance of $105-112m. 2. Up about 3% from 1Q07. 3. LED and Solar: 1. Strong revenue growth vs. 1Q07 in LED and solar process equipment business (MOCVD and MBE product lines). 2. LED and solar revenues, $42.1m. 1. Up nearly 90% from $22.4m in 1Q07. 2. Business now represents largest segment at 41% of revenue. 3. EBITA, $8.6m. 4. GM, 41%. 5. During 1Q08, received acceptance on all newest generation K465 MOCVD gallium nitride systems. 1. Shipped to customers in APAC, Japan, and Europe during 2007. 6. LED and solar process equipment orders, $38.7m. 1. Up 6% vs. $36.4m in 1Q07. 2. 1Q08 orders included several multiunit orders and some key strategic penetrations of Tier 1 LED customers. 4. Data Storage Process Equipment: 1. Combination of Ion Beam/Slider product lines. 2. Revenues, $24.1m. 1. Decline from $35.7m in 1Q07. 3. As per prior guidance, had anticipated weak data storage revenues and profitability in 1H08. 4. EBITA loss, $1.4m. 5. GM, 35.3%. 6. While 1H08 data storage revenue starts out slowly, owns significant backlog to fuel revenue and profit recovery in this business in 2H08. 7. Currently anticipates that data storage will return to at least break even level in 2Q08 due to improved revenue and benefit of right sizing activities. 8. Orders, $40.6m. 1. Increase of 27% vs. $32.2m in 1Q07. 2. Up 13% sequentially. 9. Key data storage customers have shown commitment to their wafer size and technology related programs and lower cost of ownership requirements. 1. For example, experienced strength in orders for PVDI, IBD, [IBEE], as well as back end slider products. 5. Metrology: 1. Revenues, $36.1m. 1. Down 12% from $41.1m in 1Q07 primarily due to weak semiconductor environment. 2. Profitability improved significantly on a sequential basis with: 1. GM increasing from 39.3% to 46.6%. 2. EBITA recovering to $1.8m from a loss in 4Q07. 3. Bookings, $30m. 1. Result of seasonally slow scientific research and industrial spending and continued semiconductor industry softness. 4. Believes that normally weak '1Q' in research and industrial products was exacerbated by the difficult economic environment. 6. Others: 1. EPS, excluding amortization and restructuring charges, $0.09. 1. Ahead of guidance range due to better than forecasted Opex levels. 2. GM, 41.7%. 1. Ahead of guidance of 39%. 2. Up vs. 37.9% in 4Q07 even with lower revenue base. 7. Accomplishments: 1. Received key field sign offs of new K465 MOCVD system. 1. Receiving positive customer feedback on high margin this tool delivers for high brightness LED manufacturers due to its automation, higher throughput, and excellent yield. 2. Competitors' tools are producing either 138 or 90 wafers per day depending on the system, while turbo disk K465 produces over 200 wafers per day. 2. Began shipping first thermal deposition sources for CIGS solar …