Varian Semiconductor Receives Follow-On Orders From Major Taiwanese Foundry for Its VIISta Single Wafer High Current Ion Implanters

GLOUCESTER, MA -- (MARKET WIRE) -- Jan 23, 2006 -- Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA) announced today that it has received multiple follow-on orders for its VIISta™ HC single wafer high current ion implanter from a major foundry in Taiwan. The tools are expected to ship to production fabs in this quarter.

Stan Yarbro, executive vice president of Varian Semiconductor's worldwide field operations stated, "The selection of Varian Semiconductor as the high current ion implant supplier for this major foundry is the culmination of a 12-month joint development project between the two companies to implement advanced ion implant technology in 300mm production fabs in Taiwan."

"Foundries require not only process capability for assuring yields on their leading edge devices, but also flexibility for small lots and rapid qualification of new devices," said Gary Dickerson, Varian Semiconductor's chief executive officer. "The VIISta HC single wafer ion implanter provides the highest productivity, lower particle counts and superior angle control, which translate into higher yields and superior cost of ownership. The VIISta HC's architectural advantages are critical for all foundries looking to offer advanced processing to their customers."

The global shift to single wafer ion implanters is driven by both the sensitivity of advanced devices to contamination and the requirement for precise implant angle accuracy. The VIISta HC single wafer ion implanter is the only system featuring a dual magnet ribbon beam architecture, which provides the highest productivity and lowest contamination levels in the industry. In addition, the VIISta HC's unique closed-loop Varian Positioning System (VPS™) offers interlockable angle control for true zero degree applications. These features, combined with repeatable beam steering control, assure precise dopant placements required in sub-65nm devices. The VIISta HC is a member of the VIISta suite of ion implanters -- the only production-proven single wafer platform solution for all implant segments with over 400 systems installed worldwide.

About Varian Semiconductor

Varian Semiconductor Equipment Associates, Inc. is the leading producer of ion implantation equipment used in the manufacture of semiconductors. The Company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a web site at The information contained in the Company's web site is not incorporated by reference into this release, and the web site address is included in this release as an inactive textual reference only.

Note: This release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, the statements concerning the Company's performance, market share and technology leadership, technological capabilities and benefits are forward-looking statements and any statements using the terms "believes," "anticipates," "expects," "plans," or similar expressions are forward-looking statements. There are a number of important risks and factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, volatility in the semiconductor equipment industry; economic conditions in general and as they affect the Company's customers; significant fluctuations in the Company's quarterly operating results; the impact of rapid technological change; the Company's dependence on the development and introduction of new products; the Company's concentration on ion implantation systems and related products; concentration in the Company's customer base and lengthy sales cycles; the highly competitive market in which the Company competes; risks of international sales; foreign currency risks; and general economic conditions; and other factors identified in the Company's Annual Report on Form 10-K, and the most recent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release.

Bob Halliday
Executive Vice President
Chief Financial Officer


Mary Wright
Director, Investor Relations


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