WOODBURY, N.Y. and HILLSBORO, Ore. -- Veeco Instruments Inc. (Nasdaq: VECO) and FEI Company (Nasdaq: FEIC) jointly announced today that they will not be able to complete their previously announced merger by December 31, 2002. Under the terms of the Merger Agreement, if the merger is not consummated by December 31, 2002, either party has the right to terminate the Merger Agreement. The parties are currently discussing modifications to the Merger Agreement, including whether to amend the Merger Agreement to extend the December 31, 2002 date referred to above. The merger also remains subject to the parties obtaining the necessary antitrust and other regulatory approvals. There can be no assurance that the parties will reach agreement on any modifications to the Merger Agreement, that they will extend the date for completing the merger, that the closing conditions to the merger will be met, including obtaining the necessary regulatory approvals, or that the merger will be consummated at all. Veeco Instruments Inc. FEI Company