Sept. 30, 2002 – Gloucester, MA – Varian Semiconductor Equipment Associates, Inc. (VSEA), has taken further actions to restructure its business and reduce costs in anticipation of continued soft demand for semiconductor devices and semiconductor capital equipment. Included in the company’s actions is a reduction of its worldwide work force by 15 percent, to approximately 1,370.

Ernest Godshalk, president and COO, said, “Varian Semiconductor’s business fundamentals and market position remain sound. Our strong balance sheet enables us to continue to increase investment in R&D to develop new leading-edge products. However, we believe that the pace of recovery is slowing and that semiconductor unit volumes, which drive demand for our products, are uncertain. Accordingly, we are adjusting our business infrastructure to meet the changing dynamics of the equipment industry focusing on continued cycle time reduction to be more responsive to rapidly changing customer demand. When effective, these actions are expected to reduce our breakeven point to approximately $82 million.”