May 3, 2007 — FEI Company, provider of instruments for nanoscale imaging, analysis and prototyping, reported increases in revenue, earnings and cash for Q1 2007. Net sales and earnings were the highest for any quarter in the company’s history, and quarterly bookings were the second-highest and the largest first-quarter total ever.

Net sales for the quarter ended April 1, 2007 of $148.0 million were up 5% compared to the fourth quarter of 2006 and up 32% compared to the first quarter of 2006.

“The year has started out on track,” said Don Kania, FEI’s president and CEO, “as we continued to demonstrate progress in several strategic areas — ramping revenue, improving gross margins, and building our presence in Asia. Bookings continued to be solid and within our expected range, and we increased shipments to bring the book-to-bill ratio closer to 1 to 1. Our gross margin improved to 43.1%, reflecting increased volume and improved revenue mix. Bookings from Asia including Japan increased 59% from last year’s first quarter and 45% from the fourth quarter. The company also increased its total cash and investment position during the quarter by $19.7 million, due to continued profitability and employee stock option exercise proceeds.”

FEI expects net sales for the Q2 2007 to be in the range of $145 million to $152 million. Bookings are expected to be in line with revenue and earnings per share are expected to be in the range of $0.32 to $0.37 per share.