Veeco Signs Applied EPI Merger

WOODBURY, N.Y., Sept. 10 -- Veeco Instruments Inc. has signed a definitive merger agreement with Applied Epi Inc., a supplier of molecular beam epitaxy (MBE) equipment used in the manufacture of high-speed compound semiconductor devices for telecommunications, optoelectronic and wireless markets.

Located in St. Paul, Minn., Applied Epi is a privately held company with year 2000 revenues of $25 million, and forecasted 2001 revenues of approximately $50 million. The merger consideration consists of approximately 4 million shares of Veeco common stock and $30 million in cash. The merger is subject to certain conditions, including regulatory approval, and is expected to close by the end of September. The merger will be accounted for using the purchase method of accounting.