Fei (FEIC) 8-K FEI Reports First Quarter Sales of $141.8 Million and E.P.S. of $0.17

Exhibit 99.1

NEWS RELEASE

For more information contact:

FEI Company

Fletcher Chamberlin

Treasurer & Communications Director

(503) 726-7710

fletcher.chamberlin@fei.com

FEI Reports First Quarter Sales of $141.8 Million and E.P.S. of $0.17

Gross Margins Increase Sequentially and Year-over-Year

HILLSBORO, Ore., May 5, 2009 — FEI Company (NASDAQ: FEIC) reported improved gross margins on modestly lower revenue for the first quarter of 2009, compared with both the fourth quarter of 2008 and the comparable quarter a year ago. Earnings per share of $0.17 were above last year’s first-quarter level and above the guidance provided in February. Revenue was near the high end of the guidance range, and bookings exceeded the company’s forecast.

For the quarter ended April 5, 2009, net sales of $141.8 million were down 7% compared to the fourth quarter of 2008 and down 6% compared to the first quarter of 2008. Gross bookings were $139.1 million before $8.5 million of currency revaluation of the backlog, resulting in net bookings of $130.6 million, compared with $153.8 million in the fourth quarter of 2008 and $150.5 million for the first quarter of 2008. The backlog at the end of the quarter was $319.3 million, approximately 90% of which is expected to ship in the next 12 months.

Gross margin in the latest quarter was 41.4%, the highest level in the last six quarters. Operating income was $8.1 million, compared with $11.2 million in the fourth quarter of 2008 and $8.8 million in last year’s first quarter. Restructuring expenses in the latest quarter reduced operating income by $1.0 million or $0.02 per diluted share. Net income for the first quarter of 2009 was $6.3 million, compared with $7.3 million in the fourth quarter of 2008 and $5.0 million in last year’s first quarter. Diluted earnings per share in the latest quarter were $0.17, compared with $0.20 in the fourth quarter of 2008 and $0.14 in the first quarter of 2008.

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Results for the first quarter of 2008 have been restated for the effect of the required adoption of FSP No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Conversion).” The restatement reduced reported net income and diluted earnings per share for last year’s first quarter by $3.1 million and $0.06 per share. The restatement is related to the company’s zero percent convertible notes that were paid off in June 2008.

During the quarter the company substantially improved its balance sheet and liquidity. Total cash and investments increased by $53.6 million in the quarter to $372.9 million, and net cash decreased by $2.2 million. The company borrowed $70.8 million against its portfolio of auction rate securities and redeemed $15 million of its 2.875% convertible notes. Net cash provided by operating activities was positive $1.2 million for the quarter.

“We had a solid quarter in a difficult environment, with a good flow of orders and strong operational performance,” said Don Kania, president and CEO of FEI. “Gross margins improved significantly despite modestly lower revenues, driven by an improved product mix, a stronger dollar and our operating improvements. Operating expenses remained under tight control while we continued our investment in new products. Life Sciences, Electronics and Service bookings increased compared to the fourth quarter. Research & Industry bookings declined from the record levels of the fourth quarter, but they were up compared to the first quarter a year ago.

“For the second quarter, we are expecting similar overall levels of demand and operating results,” continued Kania, “In the second half, we see the potential for stronger Research and Life Sciences bookings, driven by economic stimulus programs around the world, in addition to continued penetration into the Life Sciences equipment market.”

Bookings and revenue comparisons for the company’s market segments and other data are included in the supplementary information attached to this release, along with detailed statements of operations and balance sheets. Additional supplementary information realigning the geographic breakdown of revenue for the previous eight quarters is also included.

Guidance for Q2 2009

Assuming a euro/dollar exchange rate of $1.35, FEI expects net sales in the second quarter of 2009 to be in the range of $136 million to $142 million. Bookings are expected to be at least $135 million. GAAP earnings per share are expected to be in the range of $0.10 to $0.14, including estimated restructuring charges of $800,000. In comparison to the first quarter results, second quarter earnings are expected to be affected by a higher tax rate and higher non-operating expense, due in part to lower interest income.

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Investor Conference Call — 2:00 p.m. PDT Tuesday, May 5, 2009

Parties interested in listening to FEI’s quarterly conference call may do so by dialing 1-800-366-7640 (domestic, toll-free) or

1-303-262-2005 (international) and asking for the FEI First Quarter Earnings call. The call can also be accessed via the web by going to FEI’s Investor Relations page atwww.fei.com, where the webcast will also be archived. A telephone replay of the call will also be accessible for one month by dialing 1-800-405-2236 (US) or 1-303-590-3000 (international) and entering the access code 11130592#.

About FEI

FEI (Nasdaq: FEIC) is the world leader in pioneering technologies and applications that deliver imaging solutions for 3D characterization, analysis and modification/prototyping, with resolutions down to the sub-Ångström level. With a 60-year history of technological innovation and leadership, FEI has set the performance standard across TEM, SEM and DualBeam categories with its Titan™, Magellan™ and Helios™ product families. FEI’s customers, working in advanced research and manufacturing, are supported by field-experienced applications specialists. They have open access to FEI’s prestigious global user network so they can succeed in accelerating nanoscale discovery. FEI’s NanoPorts in North America, Europe and Asia provide centers of technical excellence where its world-class community of customers and specialists collaborate. FEI has sales and service operations in more than 50 countries around the world. More information can be found at:www.fei.com.

Safe Harbor Statement

This news release contains forward-looking statements that include our guidance for the second quarter of 2009 and the outlook for the second half of 2009; the expected shipment of our backlog; expectations about operating expenses; expectations for future bookings and backlog; the impact of foreign exchange rates on our results; expectations about foreign currency rates; government spending (including economic stimulus spending) and market demand for life sciences and nanotechnology generally; expected tax rates and interest income; and global macro-economic trends. Factors that could affect these forward-looking statements include, but are not limited to, the ongoing global and financial market economic crisis; the timing, size, execution and ultimate success of government stimulus programs; the strength and potential weakness of the Research & Industry, Electronics and Life Sciences market segments; cyclical changes in the data storage and semiconductor industries, which are the major components of the Electronics market; fluctuations in foreign exchange, interest and tax rates; changes in tax rate and laws and accounting rules regarding taxes; the ongoing determination of the effectiveness of foreign exchange hedge transactions; valuation of the auction rate securities we hold and classification of them on the balance sheet; reduced profitability due to failure to achieve or sustain margin improvement in service or product manufacturing; the relative mix of higher-margin and lower-margin products; failure to achieve expected benefits of restructuring plans; changes in restructuring plans; risks associated with shipping a high percentage of the company’s quarterly revenue in the last month of the quarter; difficulty in obtaining parts from suppliers; inability to achieve cost reductions in manufacturing or other areas; lower than expected customer orders; cancellation of customer orders; customer requests to defer planned shipments; failure of customers to adopt new technologies; increased competition and new product offerings from competitors; lower average sales prices and reduced margins on some product sales due to increased competition; failure of the company’s products and technology to find acceptance with customers; delays in shipping products for technical performance, component supply or other reasons; potential additional restructurings and reorganizations not presently anticipated; reduced sales due to geopolitical risks; changes in trade policies and tariff regulations; changes in the regulatory environment in the nations where we do business; bankruptcy or insolvency of customers or suppliers; inability to overcome technological barriers; additional selling, general and administrative or research and development expenses; additional costs related to future merger and acquisition activity; and failure of the company to achieve anticipated benefits of acquisitions and collaborations, including failure to achieve financial goals and integrate future acquisitions successfully. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements. FEI assumes no duty to update forward-looking statements.

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FEI Company and Subsidiaries

Consolidated Balance Sheets

(In thousands)

(Unaudited)

			As Adjusted(1)
	April 5, 2009		December 31, 2008			March 30, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	209,172	$	146,521		$	215,343
Short-term investments in marketable securities		16,988		32,901			48,746
Short-term restricted cash		9,626		10,994			22,679
Receivables		153,855		139,733			184,109
Inventories		141,394		141,609			156,036
Deferred tax assets		3,148		2,884			5,242
Other current assets		35,346		32,926			38,842
Total current assets	$	569,529		507,568			670,997
Non-current investments in marketable securities		97,880		94,098			127,597
Long-term restricted cash		39,271		34,833			22,463
Non-current inventories		40,893		41,072			43,616
Property plant and equipment, net		74,975		76,991			74,945
Goodwill		40,943		40,964			40,838
Deferred tax assets		1,998		2,188			3,314
Other assets, net		29,254		34,458			20,181
TOTAL	$	894,743	$	832,172		$	1,003,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	38,669	$	34,964		$	41,060
Accrued liabilities		34,408		35,540			37,816
Deferred revenue		55,327		44,135			61,558
Income taxes payable		4,376		3,040			4,973
Accrued restructuring, reorganization and relocation		111		240			517
Short-term line of credit		70,800		—			—
Current portion of convertible debt		—		—			146,721
Other current liabilities		39,374		33,732			32,538
Total current liabilities	$	243,065	$	151,651			325,183
Convertible debt		100,000		115,000			115,000
Other liabilities		30,779		46,432			48,525
SHAREHOLDERS’ EQUITY:
Preferred stock - 500 shares authorized; none issued and outstanding		—		—			—
Common stock - 70,000 shares authorized; 37,349, 37,286, and 36,464, shares issued and outstanding at April 5, 2009, December 31, 2008, and March 30, 2008		472,762		469,893			449,354
Retained earnings (defecit)		5,171		(1,168	)		(14,123	)
Accumulated other comprehensive income		42,966		50,364			80,012
Total shareholders’ equity		520,899		519,089			515,243
TOTAL	$	894,743	$	832,172		$	1,003,951

(1) Restated for the effects of the adoption of FSP No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

FEI Company and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Thirteen Weeks Ended
	April 5, 2009			December 31, 2008			As Adjusted (1) March 30, 2008
NET SALES:
Products	$	108,562		$	117,903		$	117,214
Service and components		33,271			33,823			34,432
Total net sales		141,833			151,726			151,646
COST OF SALES:
Products		59,887			67,791			66,983
Service and components		23,254			23,941			25,438
Total cost of sales		83,141			91,732			92,421
Gross profit		58,692			59,994			59,225
OPERATING EXPENSES:
Research and development		16,780			16,907			17,807
Selling, general and administrative		32,826			31,097			32,612
Restructuring, reorganization and relocation		962			820			—
Total operating expenses		50,568			48,824			50,419
OPERATING INCOME		8,124			11,170			8,806
OTHER INCOME (EXPENSE):
Interest income		1,133			2,535			4,999
Interest expense		(1,912	)		(1,736	)		(5,352	)
Other, net		459			(1,818	)		(867	)
Total other income (expense), net		(320	)		(1,019	)		(1,220	)
INCOME BEFORE TAXES		7,804			10,151			7,586
INCOME TAX EXPENSE		1,466			2,802			2,553
NET INCOME	$	6,338		$	7,349		$	5,033
BASIC NET INCOME PER SHARE DATA:	$	0.17		$	0.20		$	0.14
DILUTED NET INCOME PER SHARE DATA:	$	0.17		$	0.20		$	0.14
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		37,322			37,183			36,435
Diluted		37,616			37,446			36,841

(1) Restated for the effects of the adoption of FSP No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

FEI Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

	Thirteen Weeks Ended(1)
	April 5, 2009		December 31, 2008		As Adjusted (2) March 30, 2008
NET SALES:
Products	76.5	%	77.7	%	77.3	%
Service and components	23.5	%	22.3	%	22.7	%
Total net sales	100.0	%	100.0	%	100.0	%
COST OF SALES:
Products	42.2	%	44.7	%	44.2	%
Service and components	16.4	%	15.8	%	16.8	%
Total cost of sales	58.6	%	60.5	%	60.9	%
Gross profit	41.4	%	39.5	%	39.1	%
OPERATING EXPENSES:
Research and development	11.8	%	11.1	%	11.7	%
Selling, general and administrative	23.1	%	20.5	%	21.5	%
Restructuring, reorganization and relocation	0.7	%	0.5	%	0.0	%
Total operating expenses	35.7	%	32.2	%	33.2	%
OPERATING INCOME	5.7	%	7.4	%	5.8	%
OTHER INCOME (EXPENSE):
Interest income	0.8	%	1.7	%	3.3	%
Interest expense	-1.3	%	-1.1	%	-3.5	%
Other, net	0.3	%	-1.2	%	-0.6	%
Total other income (expense), net	-0.2	%	-0.7	%	-0.8	%
INCOME BEFORE TAXES	5.5	%	6.7	%	5.0	%
INCOME TAX EXPENSE	1.0	%	1.8	%	1.7	%
NET INCOME	4.5	%	4.8	%	3.3	%

(1) Percentages may not add due to rounding.

(2) Restated for the effects of the adoption of FSP No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”

FEI COMPANY

Supplemental Data Table 1

($ in millions, except per share amounts)

(Unaudited)

	Q1 Ended 5-Apr-2009			Q4 Ended 31-Dec-2008			Q1 Ended 30-Mar-2008
Income Statement Highlights
Consolidated sales	$	141.8		$	151.7		$	151.6
Gross margin		41.4	%		39.5	%		39.1	%
R&D spending	$	16.8		$	16.9		$	17.8
R&D (% of sales)		11.8	%		11.1	%		11.7	%
SG&A	$	32.8		$	31.1		$	32.6
SG&A (% of sales)		23.1	%		20.5	%		21.5	%
Stock compensation expense - COGS	$	0.4		$	0.3		$	0.3
Stock compensation expense - R&D	$	0.3		$	0.3		$	0.2
Stock compensation expense - SG&A	$	2.2		$	1.8		$	1.5
Net income	$	6.3		$	7.3		$	5.0
Diluted earnings per share	$	0.17		$	0.20		$	0.14
Interest income add back included in the calculation of diluted EPS	$	0.0		$	0.0		$	0.0
Sales by Market Segment
Electronics	$	29.3		$	32.4		$	46.5
Research & Industry	$	58.3		$	67.3		$	61.1
Life Sciences	$	20.9		$	18.2		$	9.6
Service and Components	$	33.3		$	33.8		$	34.4
Sales by Geography
USA & Canada	$	55.5		$	54.8		$	54.2
Europe	$	48.9		$	56.9		$	39.8
Asia-Pacific and Rest of World	$	37.4		$	40.0		$	57.6
Bookings
Total	$	130.6		$	153.8		$	150.5
Book-to-bill ratio		0.92			1.01			0.99
Backlog - total	$	319.3		$	330.5		$	309.6
Backlog - Service and Components	$	62.5		$	57.0		$	65.1
Bookings by Market Segment
Electronics	$	33.2		$	22.2		$	50.0
Research & Industry	$	39.4		$	82.2		$	39.2
Life Sciences	$	19.2		$	17.3		$	16.5
Service and Components	$	38.8		$	32.1		$	44.8
Balance Sheet Highlights
Cash, equivalents, investments, restricted cash	$	372.9		$	319.3		$	436.8
Operating cash generated (used)	$	1.2		$	25.1			($2.1	)
Accounts receivable	$	153.9		$	139.7		$	184.1
Days sales outstanding (DSO)		99			84			111
Inventory turnover		2.4			2.5			2.5
Inventories	$	141.4		$	141.6		$	156.0
Property, plant and equipment	$	75.0		$	77.0		$	74.9
Fixed asset investment (during quarter)	$	3.0		$	3.5		$	5.3
Depreciation expense	$	4.0		$	3.9		$	4.1
Current liabilities	$	243.1		$	151.7		$	325.2
Working capital	$	326.5		$	355.9		$	345.8
Shareholders’ equity	$	520.9		$	519.1		$	515.2
Headcount (permanent and temporary)		1,788			1,803			1,857

FEI COMPANY

Supplemental Data Table 2

($ in millions, except per share amounts)

(Unaudited)

	Q1 Ended 5-Apr-2009		Q4 Ended 31-Dec-2008		Q3 Ended 28-Sep-2008		Q2 Ended 29-Jun-2008		Q1 Ended 30-Mar-2008		Q4 Ended 31-Dec-2007		Q3 Ended 30-Sep-2007		Q2 Ended 1-Jul-2007		Q1 Ended 1-Apr-2007
Revised Geographic Revenue Distribution
USA & Canada	$	55.5	$	54.8	$	52.3	$	54.3	$	54.2	$	63.0	$	46.5	$	59.1	$	63.1
Europe	$	48.9	$	56.9	$	48.8	$	56.1	$	39.8	$	54.1	$	54.4	$	37.3	$	32.8
Asia-Pacific and Rest of World	$	37.4	$	40.0	$	40.7	$	43.6	$	57.6	$	33.1	$	44.9	$	52.2	$	52.1