The closure of our CIGS Systems business is expected to have an immediate

Mr. Peeler added, “Veeco intends to transfer our R&D facility, pilot line, technology and key personnel in Clifton Park, New York to the led linear high bay light Science and Engineering (CNSE) in order to support their planned CNSE/SEMATECH Photovoltaic Manufacturing Consortium (PVMC). We believe the PVMC is much-needed to drive CIGS industry roadmaps, collaboration, market acceptance and commercialization.”

Veeco’s second quarter GAAP results were negatively impacted by approximately $51 million in asset impairment and restructuring charges related to this business (refer to attached table). In addition, approximately $20 million in CIGS deposition systems has been removed from Veeco’s backlog. Effective third quarter 2011,Veeco will treat its CIGS Solar Systems business, which operated at a loss, as a discontinued operation. Mr. Peeler added, “The closure of our CIGS Systems business is expected to have an immediate and positive impact to Veeco’s profitability.” Veeco will continue to sell CIGS deposition components and remains the top supplier of MOCVD and MBE tools to the concentrator photovoltaic (CPV) market.

During the second quarter, under its Board authorized share buy-back program, Veeco purchased $7.8 million in stock at an average price of $46.91 per share. Veeco also completed the redemption of its outstanding Convertible Subordinated Notes for $98.1 million aggregate principal amount and completed the purchase of a privately-held company which supplies certain led high bay light critical components to our MOCVD business for $28.3 million. Mr. Peeler commented, “In addition to paying off our convertible debt and making a small technology purchase, Veeco recently utilized cash to buy-back our shares, reflecting our continued confidence in the long-term outlook for the Company.