To: Sherman Chen who wrote (821 ) 8/30/2000 9:06:09 AM From: Proud_Infidel Respond to of 1929 Varian Semiconductor Expands Manufacturing Capabilities in Korea GLOUCESTER, Mass.--(BUSINESS WIRE)--August 30, 2000--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA - news), a leading supplier of ion implantation systems, today announced a major new initiative to rebuild a strong manufacturing presence at its Varian Korea Limited facility in Pyong Taek, Kyung Ki-Do, Korea. The existing facility currently houses 30,000 square feet of manufacturing space and a class 1000 clean room. Sung-Ho Kim, Ph.D., has been appointed as director of manufacturing for Varian Korea Limited, reporting to Yong-Kil Kim, Ph.D., president of VKL. Sung-Ho Kim brings several years of direct manufacturing and operations experience from Samsung Motors where he most recently served as automotive engineering manager. He was responsible for successfully transferring Samsung Motor's exclusive product, the SM5 model, from design to manufacturing. S.H. Kim holds a Ph.D. in mechanical engineering from Northwestern University. Yong-Kil Kim, commented, ``We are extremely fortunate to have someone of Sung-Ho Kim's caliber and credentials join us in this critical role. His vast knowledge of the supply chain in Korea will help us quickly tap into an Asian supply chain that supports some of the largest chip manufacturers in the world. Creating a manufacturing competence in Korea will allow us to have a center for Pacific Rim sourcing activity in the region.'' Richard A. Aurelio, VSEA's president and chief executive officer stated, ``Having a world-class facility and a talented management team in Korea enables us to swiftly increase our global production capacity to meet demand which has tripled in the past year. We expect to begin delivering assemblies from Asia by the end of 2000. Additionally, with the tight job market for skilled people around the world, Korea provides a valuable source of highly educated and skilled technical talent. We are tapping into that Korean talent pool to improve our lead times, while managing our materials and manufacturing costs more effectively.'' About Varian Semiconductor: Varian Semiconductor Equipment Associates, Inc. is an industry leader in designing, manufacturing, marketing and servicing ion implantation systems, semiconductor processing equipment used in the fabrication of integrated circuits. Through the process and productivity advantages of single wafer technology, VSEA is providing chipmakers with high throughput, low cost and maximum yields. The company is based in Gloucester, Massachusetts and maintains offices around the world. Its stock is traded on the NASDAQ National Market System under the symbol ``VSEA.'' Additional information and background is available on VSEA's website www.vsea.com. 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, the statements concerning the industry outlook, the company's sales growth, market share, capacity utilization and technological improvements and benefits, and any statements using the terms ``believes,'' ``anticipates,'' ``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: the short operating history for the company as a separate entity; volatility in the semiconductor equipment industry; significant fluctuations in the company's quarterly operating results; risks associated with the company's transition to a new information technology infrastructure; the impact of rapid technological change and 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; uncertain protection of patent and other proprietary rights; potential environmental liabilities; the company's reliance on a limited group of suppliers; the ability of the company's suppliers to respond to increased demand for parts; the company's dependence on certain key personnel; as well as other risk factors described from time to time in the company's periodic reports and registration statements 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.