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Varian Semiconductor Wins First Place in VLSI Research 10 BEST Large Suppliers of Wafer Processing Equipment Award

Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA) announced today that the Company again has achieved first place in the prestigious VLSI Research 10 BEST Award for Large Suppliers of Wafer Processing Equipment. 2005 marks the eighth time in nine years that customers have rated Varian Semiconductor best in customer satisfaction within this segment.

Varian Semiconductor received the highest scores of all large suppliers of wafer processing equipment in each of the following twelve characteristics: cost of ownership, uptime, software, build quality, usable throughput, quality of results, product performance, process support, field engineering support, spares support, support after sales and commitment.

"Winning this award for eight out of the last nine years is a tremendous accomplishment and is evidence of the customer-focus at Varian Semiconductor," said Gary Dickerson, chief executive officer of Varian Semiconductor. "To achieve this result required outstanding execution across many aspects of our business. I want to thank all of our employees for their contribution to winning this award, and encourage everyone to continue to drive to higher levels of performance in the future. We consistently achieve the highest levels of product quality and support because of our unwavering commitment to providing customers with highly productive, innovative tools and value-added programs that increase the performance and productivity of the installed base of products in the field. This award reflects our customers' vote of confidence in the products and services they receive from Varian Semiconductor and we are honored to be acknowledged again for providing the highest customer satisfaction in the industry."

"Once again, Varian Semiconductor earned the number one position in our 10 BEST Large Suppliers of Wafer Processing Equipment segment this year due to its concerted focus on customer satisfaction," stated VLSI chief executive officer, G. Dan Hutcheson. "This year, customers commented on the survey that 'Varian's support continues to go above and beyond expectations,' and 'They consistently look for ways to improve the tool without customer request.' Customers also noted that the ion implanter products have 'good equipment designs (that) lead to excellent uptime and availability' and the 'tool is a dependable, high throughput workhorse.' The company's continued success is clearly a result of their dedication to providing leading-edge, top quality products, and customer support."

About Varian Semiconductor

Varian Semiconductor Equipment Associates, Inc. is a leading producer of ion implantation equipment used in the manufacture of semiconductors. The Company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a web site at www.vsea.com. The information contained in the Company's web site is not incorporated by reference into this release, and the web site address is included in this release as an inactive textual reference only.

About VLSI Research Inc

VLSI Research Inc 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 https://www.vlsiresearch.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.

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