Veeco’s Strategy For Growth Develop a broad product line of enabling Process Equipment and Metrology technologies. Develop strategic relationships with technology leaders worldwide. Capture leading market share in all product lines. Leverage our exposure to high-growth end markets. Fuel our growth through the development of new products tied to our customers’ new technology roadmap demands. Continually improve our operations to remain profitable through industry cycles. WE BELIEVE THERE IS A MULTI-HUNDRED MILLION DOLLAR GROWTH OPPORTUNITY FOR VEECO EXISTING IN THE TECHNOLOGIES WE OWN TODAY

Veeco 2006 Benefits From… Multi-Market GrowthPerpendicular Recording technology & consumer electronics require new Veeco Equipment & MetrologyBrightness Roadmap for new LCD-TV backlighting requires new MOCVD tools3D Metrology required as dimensions shrink below 90nm Nanoscale Research requires atomic instrumentation 2005 Veeco Revenue 2006 Veeco Revenue Forecast Data StorageHB-LED/ Wireless Semi-conductor Scientific Research$167M $190M +12 to 14% $63M $85M $69M $65M $111M $100M $410M $440M Double digit growth in Data Storage and HB-LED/Wireless +30 to 40% Flat to -6% Flat to -10% +7 to +9%

Q3 – Top 15 Customers by Orders… Across All Major Veeco Markets $26M $29M $14M $45M TOTAL $ ORDERS BY MARKET X Kopti 13. X Fujitsu 11. X Seoul Opto 12. IBM SMIC Wuxi Blue Star Nanya Printed Circuit Arima Opto OSRAM Nanjing Guosheng Electronics Bandwidth Seagate Western Digital Headway/TDK/SAE Hitachi Global Storage Tech Scientific Research LED / Wireless Semiconductor Data Storage X 1. X 2. X 15. X 14. X 10. 0 7 3 5 TOTAL TOP 15 BY MARKET X 9. X 8. X 7. X X 6. 5. X 4. X 3. $114M

Q306 … Revenue Up 12% Year over Year… Orders Up 36% Year Over YearRevenue ($M) 9 Months Up 7% Orders 9 Months Up 27% Q306 Orders Up 36%. 9 Month Orders up 27% Q306 Revenue Up 12%. 9 Month Revenue up 7% 9 Months ORDERS Up 27% 9 Months REVENUE Up 7% $99$119$85$103$127$143$115$0$20$40$60$80$100$120$140$160Q105Q205Q305Q405Q106Q206Q306$94$103$100$113$94$112$112$0$20$40$60$80$100$120$140Q105Q205Q305Q405Q106Q206Q306

Veeco Has a Diverse Revenue Base… Growth in Semiconductor and HB-LED/Wireless Revenue by Product Equipment up 45% Revenue by Market Semiconductor up 31% HB-LED / Wireless up 193% Revenue by GeographyAPAC growth +41% Veeco benefits from product, market and geographic diversity. Q306 REVENUE $112.4M…up 12% Year Over Year Equipment 64% Rev $71.4M GM 38.1% Metrology 36% Rev $41.0M GM 50.3% HB-LED /Wireless 25% Scientific Research 21% Data Storage 40% Semiconductor 14% Europe 13% U.S. 36% Asia Pacific 44% Japan 7%

Q3 Data Storage and HB-LED APAC Growth Orders by Product Equipment Orders Up 59% Metrology Up 7% Orders by Market Data Storage Orders Up 35% HB-LED Orders Up 100% Semiconductor Orders Up 26% Orders by Geography APAC Up 125% U.S. Up 42% Q306 ORDERS $115M …up 36% Year Over Year Equipment 65% Orders $74.8M Metrology 35% Orders $40.0M HB-LED/ Wireless 25% Scientific Research 23% Data Storage 40% Semiconductor 12% Europe 14% U.S. 37% Asia Pacific 37% Japan 12%

Veeco Has a Diverse Revenue Base… Multi-Product…Multi-Market…Worldwide ExposureRevenue by Product (Equipment up 19%) Revenue by Market (Data Storage up 13% HB-LED/Wireless up 34%) Revenue by Geography(APAC growth 43%) Veeco benefits from product, market and geographic diversity 9 Months YTD REVENUE $317.9M up 7% Equipment 60% Rev $191.9M GM 38.8% Metrology 40% Rev $126.0M GM 51.4% HB-LED /Wireless 19% Scientific Research 25% Data Storage 44% Semiconductor 12% Europe 16% U.S. 33% Asia Pacific 40% Japan 11%

Orders by Product Equipment Orders Up 48% Orders by Market Data Storage Orders Up 34% HB-LEB Orders Up 93% Orders by Geography APAC Up 69% 9 Months YTD ORDERS $385M Up 27% Equipment 66% Orders $252.6M Metrology 34% Orders $132.1M HB-LED/ Wireless 21% Scientific Research 18% Data Storage 49% Semiconductor 12% Europe 11% U.S. 34% Asia Pacific 43% Japan 12% Veeco benefits from product, market and geographic diversity Veeco Has a Diverse Revenue Base… Multi-Product…Multi-Market…Worldwide Exposure

2006 Continued Growth in… Revenue, Margins and EBITA*EBITA calculation = earnings before interest, taxes and amortization… see reconciliation table Gross Margin EBITA* Revenue 2006 Revenue Growth +9% Gross Margin Improvement +200 Basis Points Per Year EBITA Growth Greater than 30% for Year 39%42%~44%0%5%10%15%20%25%30%35%40%45%50%200420052006F $410M$390M$440M$0$100$200$300$400$500200420052006F$29M$14M$40M$0$10$20$30$40200420052006F

Improved Financial Performance in Trough and Peak Quarters $49M 3.5% 38% 100% Equipment Trough Quarter $45M 16% 51% 100% Metrology Revenue EBITA Oper Expense Gross Margin Sales 100% 45% 39% $94M 6% Total Veeco ~$135 to $145M 14-17% 32% 46-48% 100% Target $80M 14% 40% 100% Equipment Peak Quarter $46M 17% 53% 100% Metrology 100% 45-46% 33-34% $125-135M 11-13% Total Veeco Earn 5 to 6% in Trough quarters ($90 – 95M) Earn 11 to 13% in Peak quarters ($125 – $135M) Earn 14 – 17% at Target Revenue ($135M - $145M)

Continued Initiatives… Improve Margins, Operational Excellence, Reduced Cycle Times Simplify Veeco operational organization around a single Process Equipment and a single Metrology senior management structure with emphasis on: Development of common hardware/software platforms Increased outsourcing content of new products Shorter manufacturing cycles …less inventory …improved reliability Supply chain management …reduced number of vendors Implement SAP across all Veeco divisions to eliminate redundant support functions. Operational excellence to include inventory reduction, capex reduction, DSO management and cash generation …best practices across all of Veeco

2005-2006 Opportunity to Strengthen Balance Sheet Through Cash Generation ($M) CASH GENERATED BY OPERATIONS IN 2005 TOTALED $44.9M February 18, 2006: Veeco repurchased $20M of convertible notes December 31, 2005 Sep 30, 2006 $248.6 $273.1 Shareholder’s Equity 229.2 208.9 Long Term Debt($200M convert due late 2008)567.9 580.5 Total Asset 69.8 71.7 Fixed Assets 229.7 243.7 Working Capital $124.5 $126.6 Cash and Investments

Data Storage Market Continues to be a growth opportunity for Veeco Consumer applications are fastest growing segments Small Form Factor (SFF) drives are beneficiaries of this growth and are driving areal density requirements DVR iPod Personal Storage Mobile Phones Xbox GPS HDD Camcorder Portable Unit Growth by Market Segment-1002003004005006007008002004200520062007200820092010MillionsYearEnterpriseDesktopPersonal StoragePortableConsumer44 %54 %

HDD Opportunity…Unprecedented Technology and Form Factor Changes Occurring Simultaneously Areal Density (Gbit/in2) Perpendicular Recording 1000 10010 1 00 01 02 03 04 05 06 07 Perpendicular Recording Longitudinal Recording CPPGMRTMRPico Slider Femto Slider Slider Shrinks (FEMTO) and Wafer Size Increases (200mm) Microdrives Microdrives TFMH Technology Changes Drive Capital Equipment Growth Areal density roadmap increases (30%) per year toward CPP (perpendicular recording) capable of 1 Terabit/in² (2008)…will require new manufacturing technology. Mini Micro NanoPico Femto(100%) (70%) (50%) (30%) (20%)19751987199019952004?Mini Micro NanoPico Femto(100%) (70%) (50%) (30%) (20%)19751987199019952004?

Rapid adoption of PMR and TMRTechnology and Transition to Femto Sliders Areal Density Growth 125 to 500 Gbits/in2 èFemto, PMR and TMR technologies have stringent requirements for Process Equipment and Metrology Technology Advances to Meet Market Requirements… Requires Continued Investment 0%10%20%30%40%50%60%70%80%90%100%200520062007200820092010YearAdoption [%]01002003004005006007008009001000GBits/in2PMRAreal DensityTMRCPP-GMRFemto

Data Storage Capital Intensity Increases… 10% of HDD Revenue Source: Tom Coughlin, Coughlin Associates 10.6% $5.68 B $53.6 B 2010 10.1% (avg.) $21.45 $211.9 B Total (2006-2010) 8.9% $2.87 B $32.4 B 2006 9.9% $3.62 B $36.6 B 2007 10.3% $4.29 B $41.5 B 2008 10.4% $4.96 B $47.7 B 2009 7.9% $2.23 B $28.1 B 2005 HDD CapEx % of Revenue HDD CapEx $B Total HDD Revenue Year 0123456200520062007200820092010HDD CapEx $BHDD CapEx % of RevenueHDD CapEx $B

Data Storage Multi-Year Growth in New Technology and Capacity… Provides Veeco with Continued Growth 30% 90% 2076 2009 10% Larger Wafer 150mm/200mm ~30% $190M $167M $123M Veeco Revenue CAGR 2007F 2005 2006 60% 30% 14% 3% PMR Content 100% 80% 30% 10% Femto Content Perpendicular recording / Areal density growth Femto sliders/200mm wafers Continued CE & mobile growth TMR higher areal density growth Consumer elec Seagate / Maxtor Areal density growth 30% per year GMR Flash emerges Modest industry / areal density investment Market Conditions 12% CAGR New Slider tools (saws/lapping) New PVD / ALD deposition Adv. Metrology Auto AFM New Nexus IBE / IBD / DLC Optical Profiler New Veeco Products 1898 1787 1532 1232 TFMH (M) Growth 2008 2007 2006 2005 Technology(units) Source Trend Focus 8/2006

HB-LED/Wireless Opportunity… “Brightness” Defines Next Generation Veeco MOCVD Color Binning(wavelength in nanometers) Brightness (mW per std LED area)8mW 7mW 6mW 5mW 4mW 3mW 2mW 1mW Large LCD Backlighting Mobile Phones Traffic Lights Outdoor Signage General Lighting GaNzilla II MOCVDNext Gen MOCVDNext Gen +1 MOCVD2002 2003 2005 2006 2007 2004 >2010 2000 Blue Keypads Automotive New Applications Enabled By Brighter Epitaxy Films +/-5nm +/-4nm +/-3nm <+/-2.5nm <+/-2.0nm

1960 1970 1980 1990 2000 2010 2020 Relative LED Unit Shipments Enterprise Red Indicator Lights Red HB-LEDs Blue & Green HB-LED (GaN) White Backlighting General Illumination Red LED Blue & Green HB-LED Red HB-LED Tail Light HB-LED Headlights Small LCD Backlighting Cell Phone PDA Large LCD Backlighting $12B HB-LED Market Size Solid State Lighting Growth Opportunity… Red, Green, Blue HB-LED / Wireless >20% CAGR

Multi Year HB-LED/Wireless Growth… Driven By “White LED” Penetration of LCD TV, Automotive & Architectural Lighting 138M 10B 2004 27% +23% +20% CAGR $175M+15% 13.0% 395M 25B 2009 Mobile phones Outdoor signs Traffic lights Camera flash Backlit laptops Auto lighting Specialty interior lighting General illumination Backlit LCD TV Auto headlights Architec-tural lighting 9.0% 3.5% 1.0% 0.2% LED - Backlit Penetration$150M30% $115M+30% $85M+30 to 35% $65M Veeco CS Revenue353M 308M 264M 215M Flat Panel Backlit Units (2) Market Applications 21B 2008 18B 15B 12.5B LED Units* (1) 2007 2006 2005 * For emerging applications such as signs/displays, signals, automotive and illumination. (1) Source: Strategies Unlimited (2) Source: Display Search

HB-LED Opportunity… Multi-Year Equipment Growth From Increased Adoption Automotive Lighting General Illumination Outdoor Signage Mobile Appliances Headlamps Dashboard Heads up displays 60 million light vehicles produced per year; only 40% use LEDs Headlamps and DRL will be introduced as brightness continues to increase Early Architectural Architectural and General Illumination 5% of LED market growing fast Flexibility of light quality and color drives early adoption 5 years before adoption into general lighting Large displays Traffic signals Storefront lighting Signage displays continue to become larger and more dynamic Beijing 2008 Olympics driving growth in China Cell phones PDAs Flashlights 57% growth in LEDs for backlighting in 2004 Expected growth for white “flash” LED and other small displays LCD Backlighting Flat Panel TVs Laptops Retail Display Color rendering significantly higher than CCFL (100% NTSC) Adopted for high-end TV units; will increase penetration as price falls 2006-2007 GROWTH OPPORTUNITY

Emerging Applications… First Wave Small Panel Displays (’06/’07 MOCVD) HB-LEDs are capturing small panel display backlighting Cost and brightness now meet requirements Replaces CCFL backlight, no mercury Provide weight, power and panel thickness advantage “Every small LCD panel maker in Taiwan is qualifying HB-LED backlighting now” – Taiwan HB-LED Mfg. GaNzilla II Meets Cost And Performance Requirements LEDs provide “slimmer and more efficient” LCDs

Emerging Applications… Second Wave TV Backlighting (’08/’09 MOCVD) Adoption driver: color quality, depth, contrast Cost competitive LED backlighting expected for 32” LCD TV in 2007 – sooner than expected CCFL covers 85% of NTSC color gamut…LEDs cover 105% *Source: Insight Media, DigiTimes.com, Press Release, May 26, 2006 Backlighting Unit Shipment Forecast 40-44 inch LCD TV Segment0510152020062007F2008F2009F2010FMillion UnitsCCFLLED penetration

Veeco’s Leading Metrology Solutions DMEMS Optical Dimension V AFM Dektak Stylus Multimode V AFM Dimension AFP $170M+ Revenues 2006, GM growth 51->52% in 2006 Leadership positions in: Semiconductor, Data Storage, General Industrial, MEMS Metrology Nano/Bio Research – university & nano-center focused business 2006 Focus for Automated AFM Reference metrology tool Data Storage opportunity New platform development for 2007 2006 Focus for Research AFM and Optical: Launch Next Generation Products and New Market Opportunities

Success in Auto-AFM… Multi-Market Expansion Veeco created the Semi AFM Market opportunity and remains the clear market leader… more than 350 Automated AFM systems shipped Automated Pole Tip Recession Metrology Markets Data Storage Non destructive, accurate Metrology Markets Semiconductor CCD Advanced 3D AFM Metrology Markets Data Storage Mask New AFP For CMP & Etch Metrology Markets Semiconductor Data Storage

Auto-AFM Market Drivers Accurate Metrology Reference Systems are required to benchmark Optical-CD and CD-SEM systems X3D defined by Sematech as reference system 70nm Resist Lines, X3D Image Metrology Systems that do not alter materials while measuring them New materials (Low-k + resist) unaffected by AFM Techniques As linewidths shrink increasing correlation issues to test structures require In-die Monitoring AFM Resolution allows for in-die, in-line monitoring Turn Around Time (TAT) to get feedback from metrology systems to the process equipment is shrinking with high volume 300mm fabs Accurate, non-destructive 3D AFM enables TAT of minutes instead of hours or days 70nm Trench Dram X300 Image

Growing Application Space for Automated AFMs Auto-AFMs used for in-line metrology in CMP, Etch, Litho and Mask modules Auto-AFM continues penetration at 65 & 45nm with new Veeco solutions Fab-based Reference Metrology for TEM replacement Advanced Mask Metrology for 45nm and below Advanced Lithography for Line Edge Roughness & Line Width Variation Veeco Auto-AFM Revenue >20% CAGR 2003-2006 Polygate TEM Etched Polygate X3D Image Advanced Mask Structure X3D Image 28nm Isolated Line 28nm Isolated Line

Auto-AFM New Applications in Data Storage Rapid adoption of PMR and TMR TechnologyAreal Density Growth 125 to 500 Gbits/in2 èAdvanced Perpendicular recording requires new 3D metrology not satisfied by current techniques 3D Auto-AFM provides non-destructive complete 3-D imaging capability displacing FIB-SEMS All major DS customers utilize 3D-AFM for PMR Metrology SEM Image of LMR Structure Advanced PMR Structure X3D Image 1-2 systems sold to date per customer

Nano Ruler World Leader in Surface Science and Metrology Magnetic Bits (HDD) 160nmx40nm (100Gb/in2). MEMS 10um – 1mmTransistor 0.5um – 90nm Quantum Dots 20nm wide ea. Silicon Atom 0.2nm dia Human Hair 70um wideRed Blood Cells 3um dia DNA Strand 2nm wide Nanotech 1,000,000nm 100,000nm 10,000nm 1,000nm 100nm 10nm 1nm 0.1nm Bio Nano Microtech Thin Films TFH, IC Veeco Has the Broadest Line of Tools For Micro to Nano Applications DMEMS Optical Dimension V Dektak Stylus Multimode V Installed Base of 7,500 AFMs

Life Science and Nanotechnology Will… Drive New Growth Areas Cancer Research - AFM Bone Studies - AFM Heart Stent Development - Optical DS Metrology – AFM & Optical Source: Veeco, SDI, Dataquest, IDE DLP & MEMS Metrology - Optical Windows on the World – R&D Market Veeco scientific tools have a rich history of enabling leading core R&D Close connection with our R&D customers is our incubator for new platforms and emerging growth markets 8-10% End Market Growth in Nano Bio Research, Consumer Electronics and MEMS will Drive Veeco’s Instrumentation Growth in 2007 and Beyond

BioAFM Microscopy Market in its Infancy The potential of the SPM in biology remains largely untapped. Quantitative research, followed by clinical applications, will drive adoption. Rate of Adoption for Biological Imaging Technologies vs. Time Innovators Early Majority Late Majority Early Adopters Laggards Time (Not to Scale) Optical Microscopy SEM Confocal Biological AFM Present 100 nm 100m 100 mm AFM Optical MicroscopesDNA Cell Proteins & single Molecules 1 Å BioScope II AFM

Safe Harbor Statement To the extent that this presentation discusses expectations about market conditions, market acceptance and future sales of Veeco’s products, Veeco’s future financial performance, future disclosures, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the challenges of volatility in end market conditions and the cyclical nature of the data storage, semiconductor, HB-LED/wireless and scientific research markets, risks associated with integrating acquired businesses and the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2005, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.In addition, this presentation may review non-GAAP financial measures. For GAAP reconciliation, please refer to the reconciliation section in this presentation as well as Veeco’s financial press releases and 10K and 10Q filings available on www.veeco.com

Q306 Reconciliation Table 2006200520062005Operating income$4,969$4,213$12,215$4,390Adjustments:Write-off of purchased in-process technology1,160(1)-1,160(1)-Amortization expense4,0254,03812,02912,554Earnings before interest, income taxes and amortization, excluding certain items ("EBITA")10,1548,25125,40416,944Interest expense, net1,0561,8153,5835,920Gain on extinguishment of debt--(330)(2)-Adjustment to exclude gain on extinguishment of debt--330-Earnings excluding certain items before income taxes9,0986,43621,82111,024Income tax provision at 35%3,1842,2537,6373,858Earnings excluding certain items$5,914$4,183$14,184$7,166Earnings excluding certain items per diluted share$0.19$0.14$0.46$0.24Diluted weighted average shares outstanding31,39330,36031,10030,106(2) During the first quarter of 2006, the Company repurchased $20.0 million aggregate principal amount of its 4.125% convertible subordinated notes. As a result of this repurchase, the amount of convertible subordinated notes outstanding was reduced to $200.0 million, and the Company recorded a gain from the early extinguishment of debt in the amount of $0.6 million, offset by a $0.3 million proportionate reduction in the related deferred financing costs for a net gain of $0.3 million.NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used by management to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.(1) During 2006, the Company purchased a 19.9% interest in Fluens Corporation. During the third quarter of 2006, the Company finalized its purchase accounting for Fluens determining that Fluens is a variable interest entity and the Company is its primary beneficiary as defined by FIN46(R). As such, the Company has consolidated the results of Fluens' operations from the acquisition date. As part of that acquisition, the Company acquired $1.16 million of in-process technology, which was written off as of the acquisition date. Three months endedSeptember 30,Nine months endedSeptember 30,

Q406 Guidance Reconciliation Table High End Low End 4,000 4,000 Amortization expense 12,500 10,300 Earnings before interest, income taxes and amortization, excluding certain items (“EBITA”) 1,400 1,500 Interest expense, net 11,100 8,800 Earnings excluding certain items before income taxes 3,885 3,080 Income tax provision at 35% $7,215 $5,720 Earnings excluding certain items $0.22 $0.18 Earnings excluding certain items per diluted share 32,400 32,400 Diluted weighted average shares outstanding The forecasted income tax expenses for the three months ending December 31, 2006 high end and low end guidance is $1.8 million, and $1.2 million, respectively. NOTE: The above reconciliation is intended to present Veeco’s operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information. $16,500 $14,300 Operating income Guidance for three months ended Dec 31, 2006 (in thousands)