accretive acquisition provides complementary, differentiated technology for greater access to high growth marketsmanagement conference call to be held friday december 5, 2014plainview, n.y.business wireveeco instruments inc. nasdaqveco today announced that it has acquired privately held solid state equipment holdings llc &ldquossec&rdquo, based in horsham, pennsylvania. ssec is a leading innovator in single wafer wet etch, clean and surface preparation equipment targeting high growth segments in advanced packaging, microelectromechanical systems mems and compound semiconductor.&ldquossec is a highly successful process equipment company that is a great strategic fit with veeco&rdquo&ldquossec is a highly successful process equipment company that is a great strategic fit with veeco,&rdquo said john r. peeler, veeco&rsquos chairman and chief executive officer. &ldquotheir complementary and differentiated &lsquosoak and spray&rsquo technology delivers single wafer control with the low cost of batch processing. ssec extends our compound semiconductor and mems footprint, and represents a stepping stone to the highgrowth advanced packaging market. this is a synergistic transaction that will be immediately accretive and that we expect will drive growth and profitability.&rdquodemand for higher performance, increased functionality, smaller form factor and lower power consumption in mobile devices, consumer electronics and high performance computing is accelerating advanced packaging technology adoption. key drivers for this inflection are applications in 3d stacked memory, 3d systemonchip and mems. increasing shipments in smartphones and wearable electronics with more sophisticated sensing functions further drive growth in the mems market. veeco estimates that its served available markets for advanced packaging, compound semiconductor and mems are all growing at doubledigit compound annual growth rates.herman itzkowitz, ssec&rsquos chief executive officer said, &ldquowe are excited to join the veeco team. veeco is a dynamic market leader in compound semiconductor equipment for led, power electronics, and wireless devices. combining resources will enable us to accelerate growth and to pursue market opportunities in advanced packaging and mems. in addition, we have significant untapped potential in asia and europe, where veeco&rsquos impressive sales and service network will provide connectivity to key customers.&rdquoabout ssecssec designs and manufacturers wafer processing equipment for compound semiconductor, mems, semiconductor advanced packaging, photomask and other applications. ssec provides customers with leadingedge processes, reliability and value. all ssec systems are engineered from the inside out and are configurable according to customer process needs and their manufacturing and business objectives. for more information, please visit httpwww.ssecusa.comdetails of the transactionunder the terms of the agreement, veeco has acquired ssec for a total consideration of approximately 150 million in cash, subject to customary adjustments. veeco is forecasting ssec&rsquos revenues to be 65 million in 2015. given ssec&rsquos financial performance over the last few years, we expect them to provide earnings before interest, taxes, depreciation, amortization, equity compensation, and other nonrecurring items adjusted ebitda of greater than 20 of sales in 2015. the transaction is expected to be significantly accretive to veeco in fiscal 2015 on a nongaap earnings per share basis.veeco&rsquos q4 2014 standalone performance is tracking inline with previously published financial guidance. however, due to ssec acquisition related accounting, our previously published gaap and nongaap guidance cannot be relied upon.management conference callveeco&rsquos management will host a conference call to review this transaction tomorrow, december 5, 2014, at 1000 am eastern time. the call will be webcast live on the veeco website at www.veeco.com. the call can also be accessed by dialing 18887373662 toll free or 19133121507 using passcode 7022579. a replay of the call will be available beginning at 100 pm et tomorrow through friday, december 19 at 100 pm et at 18882031112 toll free or 17194570820, using passcode 7022579, and on the veeco website. a slide presentation will be available for listeners to follow along, so please visit our website prior to the event.about veecoveeco&rsquos process equipment solutions enable the manufacture of leds, flexible oled displays, solar cells, power electronics, hard drives, mems and wireless chips. we are the market leader in led, mbe, ion beam and other advanced thin film process technologies. our high performance systems drive innovation in energy efficiency, consumer electronics and network storage and allow our customers to maximize productivity and achieve lower cost of ownership. for information on our company, products and worldwide service and support, please visit www.veeco.com.to the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forwardlooking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. these factors include the risks discussed in the business description and management&39s discussion and analysis sections of veeco&39s annual report on form 10k for the year ended december 31, 2013 and in our subsequent quarterly reports on form 10q, current reports on form 8k and press releases. additional risks specifically associated with this transaction relate to the expected benefits to veeco from completing the acquisition and the expected financial performance of veeco following completion of the acquisition. statements regarding future events are based on the parties&39 current expectations and are necessarily subject to associated risks related to the potential impact on the business of ssec due to the acquisition, the retention of employees of ssec and the ability of veeco to successfully integrate ssec&rsquos market opportunities, technology, personnel and operations and to achieve expected benefits. veeco does not undertake any obligation to update any forwardlooking statements to reflect future events or circumstances after the date of such statements.contactsveeco instruments inc.investorsdebra wasser, 5166770200 x1472dwasser@veeco.comormediajeffrey pina, 5166770200 x1222jpina@veeco.com 
