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| ©2008 Veeco Instruments Inc 042808 Investor Slides 12 Q1 ’08 Veeco Reconciliation Table 31,281 31,301 Diluted weighted average shares outstanding $0.10 $0.09 Earnings excluding certain items per diluted share $3,223 $2,893 Earnings excluding certain items (85) (49) Noncontrolling interest, net of income tax provision at 35% 1,690 1,532 Income tax provision at 35% 4,828 4,376 Earnings excluding certain items before income taxes 738 - Adjustment to exclude gain on extinguishment of debt (738) - Gain on extinguishment of debt 819 892 Interest expense, net 5,647 5,268 Earnings before interest, income taxes and amortization excluding certain items ("EBITA") - 285 Asset impairment charge - 2,875 Restructuring expense 3,909 1,956 Amortization expense Adjustments: $1,738 $152 Operating income 2007 2008 (1) (2) (3) Three months ended March 31, 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. 1. During the first quarter of 2008, the Company recorded a restructuring charge of $2.9 million, consisting of $2.6 million of costs associated with the consolidation and relocation of the lease for our Corporate headquarters, and $0.3 million of personnel severance costs. 2. During the first quarter of 2008, the Company recorded a $0.3 million asset impairment charge related to fixed asset write-offs associated with the consolidation and relocation of our Corporate headquarters. 3. During the first quarter of 2007, the Company repurchased $56.0 million aggregate principal amount of its 4.125% convertible subordinated notes. As a result of these repurchases, the Company recorded a gain from the early extinguishment of debt in the amount of $0.7 million. |