GLOUCESTER, MA today announced that it has shipped its 500th VIISta single wafer high current implant system. The tool was shipped to Taiwan Semiconductor Manufacturing Company, Ltd. (tsmc) (TSE: 2330) (NYSE: TSM) of Hsin-Chu, Taiwan. The unprecedented rapid adoption rate for Varian's single wafer high current systems has propelled the company to a 77% world-wide high current market share.*

"We are proud that tsmc has chosen Varian for their implant requirements. We look forward to continuing to partner with tsmc to enable their most demanding production processes for the future," said Gary Dickerson, CEO of Varian Semiconductor. He further commented, "Our high current systems deliver the highest process capability, productivity and yield to the industry's leading device manufacturers. We thank all of our customers for their support of our initiatives and for making Varian the leading implant supplier world-wide and the fastest growing major equipment company in the industry."

The VIISta high current system is a member of the VIISta suite of ion implanters -- the only complete production-proven line of single wafer solutions for all medium current, high current, high-energy and ultra high dose applications, with over 900 systems installed worldwide. All of the VIISta products feature the Varian Control System(TM) (VCS) and a common single wafer end station. This high degree of commonality across the VIISta platform provides flexibility in managing capacity, product mix changes, spare parts and training.

Varian recently announced VIISta HCS. This is the sixth-generation, single wafer high current implant system that Varian has successfully brought to market. Varian has already shipped more than 25 VIISta HCS systems into 45nm production and 32nm development sites.

Varian Semiconductor Equipment Associates, Inc. is the leading supplier of ion implant equipment to semiconductor manufacturers, enabling them to pack more, higher performing transistors into computer chips that are revolutionizing the electronics industry. Customers have made Varian Semiconductor the market leader in ion implant because of its architecturally superior products that lower their costs and improve their productivity. The Company has ranked #1 in the VLSI Research Customer Satisfaction Survey 10 times over the last 11 years. Varian Semiconductor operates globally and is headquartered in Gloucester, Massachusetts. More information can be found on Varian Semiconductor's web site at www.vsea.com.

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.

*Source: Gartner Dataquest

Contacts: Bob Halliday Executive Vice President and Chief Financial Officer 978.282.7597 or Mary Wright Director, Investor Relations 978.282.5859 or Tom Baker Vice President, Finance 978.282.2301

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