VSEA Varian Semiconductor (MM)

Varian Semiconductor Equipment Associates, Inc. ("Varian Semiconductor") (NASDAQ: VSEA) today announced that they have entered into a collaboration with Soitec (EURONEXT: SOI), the world's leading supplier of silicon-on-insulator (SOI) substrates. The two companies are collaborating on the development and qualification of a new high current implanter to be used in Soitec's patented Smart Cut(TM) technology for the production requirements of upcoming generations of SOI wafers.

The Smart Cut technology used to manufacture SOI substrates exploits ion implantation, wafer bonding and atomic level splitting. Ion implantation weakens the silicon crystal at an extremely precise depth and acts as an atomic scalpel, lifting off a thin layer from the donor substrate and placing it onto a different substrate.

The VIISta Single Wafer High Current implanter from Varian has proven, dual-magnet technology that minimizes defectivity and maximizes yield. Additionally, the use of ribbon beam technology provides productivity, cost-of-ownership and uniformity advantages for the splitting and layer transfer processes used in the Smart Cut technology.

"Soitec is committed to meeting the industry's requirements for the highest quality engineered substrates. Our collaboration with the leading supplier of ion implant equipment is key for us to meet the most advanced requirements in terms of uniformity, especially for fully depleted applications at the 22 nm node," says Paul Boudre, Chief Operating Officer of the Soitec Group.

Gary Dickerson, Chief Executive Officer of Varian, said, "We are looking forward to working together with Soitec to enable future device scaling with our dual-magnet ribbon beam technology. Through this collaboration we have the opportunity to add a whole new growth market to our portfolio of applications."

About Varian Semiconductor:

Varian Semiconductor Equipment Associates 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. Varian Semiconductor's products are used by chip manufacturers worldwide to produce high-performance semiconductor devices. 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 11 times over the last 12 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.

About Soitec:

Soitec is the world's leading supplier of engineered substrates for advanced microelectronics. The Group produces a wide range of advanced materials, especially silicon-on-insulator (SOI) wafers based on its Smart Cut(TM) technology -- the first high-volume application for this proprietary technology. SOI is currently seen as the platform of the future, paving the way to higher-performance, faster, and more economical chips.

Soitec currently produces over 80% of the worldwide market for SOI wafers. Headquartered at Bernin in France, with two high-volume production units on site, Soitec also has offices in the US, Japan, and Taiwan, and a new production site is in the process of customers' qualification in Singapore.

The Group has two other divisions: Picogiga International at Les Ulis in Paris and Tracit Technologies in Bernin. Picogiga is specialized in the development and manufacture of engineered substrates, from group III-V epitaxial semiconductor wafers and gallium nitride (GaN) wafers to composite substrates for the manufacture of high-frequency electronics and optoelectronic devices. Tracit is specialized in thin-film layer transfer technologies, used to manufacture engineered substrates for power ICs and microsystems, as well as generic circuit transfer technology for applications such as image sensors and 3D integration. Shares for the Soitec Group are listed on Euronext Paris. More information is available at www.soitec.com

Soitec, Smart Cut, and UNIBOND are trademarks of S.O.I.TEC Silicon On Insulator Technologies.

Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, statements concerning the industry outlook, expected product plans, market conditions, Varian Semiconductor's investment in new product and application development, and any statements using the terms "believes," "anticipates," "will," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volatility in the semiconductor equipment industry; intense competition in the semiconductor equipment industry; Varian Semiconductor's dependence on a small number of customers; fluctuations in Varian Semiconductor's quarterly operating results; Varian Semiconductor's transition to new products; Varian Semiconductor's exposure to risks of operating internationally; uncertain protection of Varian Semiconductor's patent and other proprietary rights; Varian Semiconductor's reliance on a limited group of suppliers; Varian Semiconductor's ability to manage potential growth, decline and strategic transactions; Varian Semiconductor's reliance on one primary manufacturing facility; and Varian Semiconductor's dependence on certain key personnel. These and other important risk factors that may affect actual results are discussed in detail under the caption "Risk Factors" in Varian Semiconductor's Annual Report on Form 10-K for the year ended October 3, 2008 and in other reports filed by Varian Semiconductor with the Securities and Exchange Commission. Varian Semiconductor cannot guarantee any future results, levels of activity, performance or achievement. Varian Semiconductor undertakes no obligation to update any of the forward-looking statements after the date of this release.

Contacts: Bob Halliday Executive Vice President and Chief Financial Officer 978.282.7597 or Tom Baker Vice President, Finance 978.282.2301