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Veeco Secure $4m in Funding to Develop Solid-State Lighting Projects

Veeco Instruments Inc. (Nasdaq: VECO) today announced that it has been awarded $4 million in R&D Matching Funds by the U.S. Department of Energy to support high-efficiency solid state lighting projects. Veeco, which is one of the world's leading providers of equipment to make light emitting diodes (LEDs), is receiving funding for a project targeted at lowering the manufacturing costs and improving the brightness and efficiency of LEDs by utilizing novel materials, substrates, and deposition technologies.

Kyma Technologies, a leading provider of crystalline nitride semiconductor materials based in Raleigh, North Carolina, will be supplying material and services to Veeco as part of this development project.

On Tuesday June 7th, Energy Secretary Steven Chu announced nearly $15 million to support eight new research and development projects that will accelerate the development and deployment of high-efficiency solid state lighting technologies like LEDs and organic LEDs (OLEDs). The projects selected are located in four states across the country and are focused on advancing core R&D goals, developing new products, and expanding domestic manufacturing capacity to help the U.S. remain competitive in this growing technology market.

U.S. Congressman Steve Israel, (2nd District of New York), commented, "Long Islanders face some of the highest energy costs in the country and every bit of savings makes a difference. Right here on Long Island we have clean technology companies like Veeco leading the way to manufacture lighting that can be ten times more efficient than conventional lighting and can last up to 25 times as long. This is exactly what we need to reduce our energy bills and strengthen Long Island's manufacturing base. I commend Veeco for their innovative work on LEDs that earned them a $4 million Department of Energy grant."

U.S. Congressman David Price (4th District of North Carolina), said, "The Veeco and Kyma project is an excellent example of a research investment that ensures our future economic competitiveness. This project and others like it show that the Triangle is again leading the way investing in job creation, furthering our nation's energy independence, and moving us one step closer to a clean energy economy."

Mr. Robert Oates, Executive Vice President of Veeco, commented, "Veeco is excited to receive this DOE endorsement and R&D funding to supplement our already aggressive programs to help lower the cost and improve the efficiency of LEDs. This new project has been launched in our Plainview, NY R&D site where we are specialists in depositing novel materials and designing equipment that provides our customers with tools that enable the lowest cost-of-ownership. Veeco's R&D efforts are focused on dramatically reducing the cost of LEDs and accelerating their adoption into the general lighting market."

Mr. Oates added, "In addition to thanking the DOE for their continued support, we would like to acknowledge the significant efforts of Congressman Israel who has been a strong advocate for programs that advance green energy technologies on Long Island and around the country." Veeco employs approximately 300 people at its Plainview site.

Dr. Keith Evans, Chief Executive Officer of Kyma, commented, "Kyma is focused on creating and supplying high performance crystalline materials that enable energy efficient lighting and electric power management. We are pleased to be supporting Veeco on this project, which will now be accelerated with DOE funding."

This is the seventh round of DOE funding for solid-state lighting core technology research and product development, and the second time that DOE has funded solid state lighting manufacturing projects. Veeco also received funding in the first manufacturing solicitation in 2010.

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