Exhibit 99.1

                             Financial Update by CFO

                                  May 25, 2006

     As is  normal  for this  time in the  quarter,  we do not  have  additional
visibility  and,  as  such,  the  comments  made in the  1Q06  earnings  release
teleconference  call appear to remain valid. We are still  anticipating  revenue
for 2Q06 to be in a range of down 10%-15%  sequentially  from 1Q06. Gross margin
still looks to be in a range of 41%-42%,  based on the projected product mix for
the  quarter.  Operating  margin  for  2Q06  still  looks  to be in a  range  of
(3%)-(7%). We still anticipate an 8% income tax rate in 2Q06. Earnings per share
for 2Q06 are still projected in a range of $0.02-($0.02).  Cash flow for 2Q06 is
still expected to be positive.

     For the full year of 2006,  the comments made in the 1Q06 earnings  release
teleconference  call also appear to remain valid.  Based on the current backlog,
order  outlook,  and  visibility,  Ultratech  continues  to have the  ability to
achieve  sequential  annual  revenue  growth on the order of 10%-20%  over 2005.
Gross  margin  still looks to be in a range of 45%-46%,  based on the  projected
product mix for the year.  Operating  margin for the year still looks to be in a
range of 2%-5%.  The projected tax rate for the year still looks to be about 8%,
due primarily to the alternative  minimum tax and corporate  income taxes on the
company's earnings in Japan. Earnings per share for the year still are projected
in a range of  $0.25-$0.45.  Cash flow for the year is still  anticipated  to be
positive.

     Certain of the statements  contained herein, which are not historical facts
and which can generally be identified by words such as "anticipates," "expects,"
"intends,"  "will," "could,"  "believes,"  "estimates,"  "continue," and similar
expressions,  are forward-looking statements under Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended,  that involve risks and uncertainties,  such as risks related to our
dependence on new product  introductions  and market  acceptance of new products
and enhanced versions of our existing products;  lengthy sales cycles, including
the  timing  of  system  installations  and  acceptances;   lengthy  and  costly
development  cycles  for  laser-processing  and  lithography   technologies  and
applications;  integration,  development  and  associated  expenses of the laser
processing  operation;   delays,   deferrals  and  cancellations  of  orders  by
customers;  cyclicality  in the  semiconductor  and  nanotechnology  industries;
pricing pressures and product  discounts;  high degree of industry  competition;
intellectual  property matters;  expiration of licensing  arrangements,  and the
resulting  adverse  impact  on our  licensing  revenues;  changes  to  financial
accounting  standards;  changes in pricing by us, our  competitors or suppliers;
customer concentration; international sales; timing of new product announcements
and releases by us or our  competitors;  ability to volume  produce  systems and
meet  customer  requirements;  sole or limited  sources of supply;  ability  and
resulting costs to attract or retain sufficient personnel to achieve our targets
for a particular period;  dilutive effect of employee stock option grants on net
income per share,  which is largely  dependent upon us achieving and maintaining
profitability  and the market price of our stock;  mix of products  sold;  rapid
technological change and the importance of timely product introductions; outcome
of  litigation;  changes  in  accounting  policies  or  interpretations  of such
policies;  manufacturing  variances and production levels;  timing and degree of
success of technologies  licensed to outside parties;  product concentration and
lack  of  product  revenue   diversification;   inventory  obsolescence;   asset
impairment;  effects of certain anti-takeover  provisions;  future acquisitions;
volatility of stock price; foreign government regulations and restrictions,  the
political   restrictions  in  Taiwan  regarding  offshore  investments  and  the
exporting  of sensitive  technologies  and jobs to certain  countries;  business
interruptions  due to  natural  disasters  or  utility  failures;  environmental
regulations;  and any adverse effects of terrorist  attacks in the United States
or elsewhere,  or government  responses  thereto,  or military  actions in Iraq,
Afghanistan  and elsewhere,  on the economy,  in general,  or on our business in
particular.  Such risks and  uncertainties  are  described  in  Ultratech's  SEC
reports  including  its  Annual  Report  on Form 10-K  filed for the year  ended
December 31, 2005 and on Form 10-Q for the quarter  ended April 1, 2006.  Due to
these and additional factors, the statements,  historical results and percentage
relationships set forth herein are not necessarily  indicative of the results of
operations for any future period. These forward-looking  statements are based on
management's current beliefs and expectations, some or all of which may prove to
be  inaccurate,  and which may change.  We undertake no  obligation to revise or
update any forward-looking  statements to reflect any event or circumstance that
may arise after the date of this release.




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