October 19, 2001 – Gloucester, MA – Varian Semiconductor Equipment Associates Inc. (VSEA), is extending its cost reduction programs, implemented during the last nine months. Among the most significant actions taken this week was the reduction of the worldwide work force by approximately 12%, bringing total global employment to just over 1,500 people.

Additional company wide actions include ongoing expense reductions in all categories to better match the company’s operations to the severity of the downturn in demand.

“Varian Semiconductor’s business is sound, our cash position and balance sheet are strong, and our clearly differentiated product offering has resulted in increased market share,” said Richard Aurelio, chairman and CEO. “However, we cannot escape deteriorating global demand affecting our entire industry and the current uncertainty about the timing of a recovery. Therefore, we believe that a cautious and conservative operational stance is best.”

“We have talented employees in all parts of the world – among the best in the industry,” Aurelio continued. “The cyclical nature of our industry requires us to make these staffing reductions to weather a difficult downturn. I applaud the continuing efforts and dedication of all members of our team in facing challenging times together.”