FEI Company Terminates Discussions With Carl Zeiss SMT

HILLSBORO, Ore., Feb. 7 /PRNewswire-FirstCall/ -- FEI Company announced today that it has terminated discussions with Carl Zeiss SMT, a unit of Carl Zeiss AG regarding the potential acquisition of FEI by Carl Zeiss SMT. The discussions were initiated by Carl Zeiss.

Commenting on this announcement, Vahe Sarkissian, chairman, president and CEO of FEI stated, “We are renewing our focus on generating improved operating results in 2006, building on our market focus and restructuring activities of 2005. Our potential as a leader in tools for nanotechnology is very large, and we are concentrating on taking advantage of that potential, generating positive shareholder returns in the process.”

About FEI

FEI’s Tools for Nanotech(TM), featuring focused ion- and electron-beam technologies, deliver 3D characterization, analysis and modification capabilities with resolution down to the sub-Angstrom level. With R&D centers in North America and Europe and sales and service operations in more than 50 countries around the world, FEI is bringing the nanoscale within the grasp of leading researchers and manufacturers and helping to turn some of the biggest ideas of this century into reality. More information can be found on the FEI website at: http://www.feicompany.com .

Safe Harbor Statement

This news release contains forward-looking statements relating to certain discussions between FEI and Carl Zeiss and the company’s current focus. Factors that could affect these forward-looking statements include, but are not limited to, changes in FEI’s strategic direction, market developments and opportunities, the competitive landscape, product and technological developments and general economic conditions. Please also refer to the company’s 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 any forward- looking statements.

FEI Company

CONTACT: Fletcher Chamberlin, Investor Relations of FEI Company,+1-503-726-7710

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