VSEA Varian Semiconductor (MM)

For the eighth consecutive year, Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA) received the 1st place ranking in two segments of the VLSI Research annual survey of large semiconductor capital equipment makers. The award for wafer processing equipment is based on surveys targeting front end of the line tools. The chip making equipment award is for both front end of the line and back end of the line combined.

These awards are based upon customer survey results. Varian Semiconductor received the best ratings among its wafer processing peers in each of the following categories that are critical to customers: software, build quality, usable throughput, quality of results, product performance, process support, field engineering support, spares support and support after sales. Varian has been the highest rated supplier across all segments, 18 times during the history of the survey. This year it has received the highest rating in 11 out of 13 categories.

The results were based on 34,238 surveys distributed to chip manufacturers representing 95% of worldwide chip production. Each company is evaluated on 13 criteria which encompass equipment performance and customer service. Varian continued their commitment to customer satisfaction in both equipment performance and customer service and increased their overall rating to a five-year record of 8.24.

"Varian is especially proud of the fact that we have consistently maintained the highest level of customer satisfaction and support through all phases or our industries cycles," said Gary Dickerson, Chief Executive Officer of Varian Semiconductor. "Not only did we meet all of customer delivery commitments with our industry leading VIISta products, but we kept our quality high. We are very proud to have won this year's VLSI Research Award."

"Based on our survey results it is clear that Varian has institutionalized quality and customer service," said G. Dan Hutcheson, Chief Executive Officer at VLSI Research. "Every year they are challenged for the top spot and every year they deliver superior performance. Clearly, Varian has shown that there is direct connection between customer support and corporate success."

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. 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 VLSI Research VLSI Research is the leading provider of market research and economic analysis on the technical, business, and economic aspects of the high technology chip making industry. The Company is known for its unparalleled accuracy, innovation in market research, and its sharply focused insight into the rapidly changing landscape of the chip making business. VLSI Research's databases on chip making are used throughout the industry, the investment community, and by governments for decisive strategic planning. VLSI Research was founded in 1976 and incorporated in California in 1981. The Company's website is www.vlsiresearch.com.

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