FEI believes
that the Titan will also be a powerful addition to FEI's UltraView(TM) suite
of sample management tools that takes NanoElectronics customers rapidly from
wafers to atoms with sub -Angstrom resolution. laboratories that combined to form the TEAM project.com . With an all-new
platform dedicated to correction and monochromator technology, the Titan S/TEM
system is the world's highest resolution commercially-available microscope,
yielding powerful sub-Angstrom (atomic scale) imaging and analysis. FEI
assumes no duty to update forward-looking statements

Mancevski added, "The nanotube tip needs to have the right diameter, and be
oriented properly. We look forward to
establishing a track record as one of the first Texas-based companies to
generate real economic growth by manufacturing and selling
nanotechnology-based products in collaboration with SEMATECH . SEMATECH conducts state-of-the-art research,
and is a highly-regarded technology partner whose goal is to promote the
interests common to all chipmakers.

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FEI Announces World's Most Advanced Electron Microscope

0 Angstrom, without the addition of aberration corrector upgrades
-- an achievement that has never before been demonstrated on a commercial
tool. Please also refer to our Form 10-K , Forms
10-Q and other filings with the U.

With R+D centers
in North America and Europe and sales and service operations in more than 40
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.
Using technical resources at the recently opened
Advanced Materials Research Center, Austin-based Xidex Corporation and
SEMATECH have developed one of Texas' first commercial applications of
nanotechnology for semiconductor production. Stevenson,
assistant professor and Jack S.

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7 Angstrom, Surpasses Previous
World Record Performance for Commercial Systems

HILLSBORO, Ore."
Advance orders for the new Titan(TM) (S)TEM have been in markets ranging
from advanced materials, energy, and semiconductors, to advanced
nanotechnology research centers in Europe and North America.S.
"The Titan is a significant breakthrough for the nanotechnology era that
provides our diverse customer base with a solid foundation for continued
innovation and commercialization.

The process uses carbon nanotubes (CNTs) as surface sensors for scanning
probe microscopes (SPMs), which can peer down to the level of molecules and
groups of atoms, and which can be used to measure the dimensions of
extremely small features in semiconductor devices.

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Thus , the integration of
these types of correctors for breaking the next resolution barrier and for
high usability has been met with limited success. 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.
In a November 2004 news release, FEI announced that it was selected as the R+D
partner for a program aimed at building the highest resolution
scanning/transmission electron microscope (S/TEM) in the world.5 Angstrom --
approximately one-third the size of a carbon atom.

Individual CNTs are
hollow tubes formed by hexagons of carbon atoms, and are about 10,000 times
thinner than a human hair. McClure, Xidex's President and CEO.
Recent rankings position it as one of the top chemistry departments in the
country for graduate programs and funding for research and development .

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Factors that could affect these forward-looking statements include but are not
limited to, the inability of FEI, its suppliers or project partners to make
the technology advances required to achieve the capability described or
consummate the project described; changes to or cancellation of the project
described; problems arising during execution of the project or the product
development that delay it or cause results to vary from the anticipated
results; unforeseen technology challenges; and failure of a key supplier or
project partner delays in development funding or customer demand that in turn
results in the delayed development. "As the world's leader
in providing Tools for Nanotech(TM ), FEI is proud to bring this world-leading
technology to the market. 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.
The aim of the five-year AMRC effort is to accelerate the commercialization
of critical technology research that economists believe will generate the
industries, careers, and tax revenue of the future. Other products in development include
high-resolution, high-sensitivity CNT probes for nuclear magnetic resonance
imaging in the biological and semiconductor industries.

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"
"The initial market response for this advanced technology has been very
strong," said George Scholes, general manager of FEI's (S)TEM business line.5 Angstrom -- approximately one-third the size
of a carbon atom. Researchers to Use World's Most Advanced Commercial Electron Microscope for
Leading-Edge Nanotechnology Research and Development

HILLSBORO, Ore.

"The time is right to introduce commercially available CNT tips for
widespread use," said Paul F.org.

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The introduction of the Titan is just one illustration of FEI's leadership
in electron microscopy and its ability to accelerate the resolution
revolution.

FEI Begins Customer Shipments of Titan(TM) S/TEM World's Most Advanced Electron Microscope

CNT tips are also extremely wear-resistant compared to
silicon tips, extending their useful life and enabling higher-precision
measurements, officials said.utexas.

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com/cgi-bin/prnh/20050418/SFM050 )
Until now, aberration correction technologies in electron microscopes have
been treated as accessory components for (S )TEM systems that were not truly
optimized for this type of advanced technology. Xidex
produced the CNT tips in collaboration with the Department of Chemistry and
Biochemistry at The University of Texas at Austin (UT) and tested them
using SEMATECH facilities.cm.

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Titan's dedicated platform for corrector and monochromator technologies
and their applications is designed for a high degree of automation and
provides ultimate stability, performance and flexibility.

The accomplishment gives chip-makers the much-needed ability to measure
devices as small as 1 nanometer (nm) and strengthens the industry's ability
to produce advanced semiconductors at the 32 nm technology node. Since these CNT tips are electronically conductive and can also
be chemically modified, it is also quite possible to manufacture
specialized tips for advanced electrical and chemical testing. In 1997 Xidex was
first to propose a method of growing a carbon nanotube directly on an AFM
tip.com. The department of nearly 50 faculty
members has reputation for excellence in teaching in addition to research. Additional information may be
found at www.sematech.

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Results from FEI's Nanoport in The Netherlands
deliver Titan TEM information limits below 0. Corrector upgrades can be added for higher resolution , extending the
point resolution down to the information limit for accurate interpretation of
atomic structures.
New developments and products for this proven platform will also be introduced
at the 2005 Microscopy and Microanalysis meeting. The Titan's
upgradeable design not only enables larger nanotechnology and national
research centers to afford dedicated aberration corrected TEM technology , it
opens the door to universities and companies with staged funds to position
themselves for the future.
FEI's shipment of the Titan S/TEM marks a significant milestone in its
leadership of providing the world's most powerful tools for nanotechnology. AFM, a form of SPM, is making the transition to semiconductor
manufacturing.relations@sematech. The company's first products are carbon nanotube tips
for scanning probe microscopes.org.

everhart microscopy

, FEI today announced its new
scanning/transmission electron microscope (S/TEM), the Titan(TM)
80-300, dedicated to corrected microscopy. FEI has received several advance orders
for the new Titan (S)TEM ranging from the base Titan 80-300 to the Titan
80-300 with two aberration correctors and a monochromator.S.
Currently, most ultra-high resolution microscopy is performed at
resolutions between one and two Angstroms. However, below one Angstrom
materials exhibit different properties and behaviors. Keith J. Josey Fellow in Energy Studies in the
Department of Chemistry and Biochemistry at UT. For details, contact
media. The intellectual
property required for the CNT tips is protected by fundamental issued and
pending Xidex patents with early priority dates.
Additional information may be found at http://www.

About SEMATECH

SEMATECH is a global semiconductor technology development consortium that
has effectively represented the semiconductor manufacturing industry on
innovation issues since 1988.

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It provides our customers a solid foundation for continued innovation and
commercialization.feicompany. Factors that could
affect these forward -looking statements include but are not limited to, the
inability of FEI, its suppliers or project partners to make the technology
advances required to achieve the capability described or consummate the
project described; changes to or cancellation of the project described;
problems arising during execution of the project or the product development
that delay it or cause results to vary from the anticipated results;
unforeseen technology challenges; and failure of a key supplier or project
partner delays in development funding or customer demand that in turn results
in the delayed development . Please also refer to our Form 10-K, Forms 10-Q
and other filings with the U.

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It
is a multi -million dollar microscopy project that calls for a new microscope
that should enable extraordinary new scientific opportunities for direct
observation aimed at enabling analysis of individual nanostructures at an
unprecedented resolution of 0."

McClure added, "The margins generated by these high -end applications will
help fund additional new product development."

"Commercialization of CNT tips for scanning probe tools will be done
exclusively by Xidex," McClure continued.mcgowan@sematech .

electron sem

The new (S)TEM system is the
world's most advanced commercially-available microscope, yielding atomic-scale
imaging with resolution below 0.
(Photo: http://www.
The Titan 80-300 has been rigorously evaluated by several leading
researchers and customers under Non-Disclosure Agreements .
"For wide commercialization of this technology we designed the base system
with a superior level of upgradeability so customers can add an aberration
corrector, on site at a later date. More information can be found on the FEI
website at: http://www."
The first shipments of the Titan 80-300 S/TEM will begin in the current
fiscal quarter.feicompany.

"Our objective is to assure a supply of commercially available CNT tips for
our member companies by working with Xidex to scale up their proprietary
CNT tip process," said John Allgair, a SEMATECH lithography metrology
program manager .

"Carbon nanotube tips will make AFMs much more effective as laboratory
diagnostic tools, and also give them the capability needed for in-line
metrology on the production floor," said Vladimir Mancevski, Xidex founder
and Chief Technology Officer, who invented the company's patented CNT
tip -manufacturing process.

electron microanalysis

7 Angstrom. The system will be
fully available for demonstrations after Titan 's official launch at the 2005
Microscopy and Microanalysis meeting, August 1-4, in Honolulu.
The upgradeable design of the Titan enables not only larger nanotechnology
and national research centers to afford dedicated aberration corrected TEM
technology, it opens the door to universities and companies with staged funds
to position themselves for the future. In a November 2004 news release , FEI announced that it was
selected as the R+D partner for a program aiming to build the highest
resolution scanning/transmission electron microscope (S/TEM) in the world by
several regional U. With R+D centers
in North America and Europe and sales and service operations in more than 40
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. Among the first customers in line for delivery include The
Center for Accelerated Maturation of Materials at Ohio State University (USA),
the Department of Inorganic Chemistry and Catalysis of the Fritz -Haber
Institute (Germany), Samsung Advanced Institute of Technology (Korea), and
Instituto Mexicano del Petroleo/IMP (Mexico).S.
The AMRC was launched in March 2004 by the State of Texas and SEMATECH to
work with the UT System and other Texas universities in investigating
promising new semiconductor technologies that will ensure the state's
high-tech future."

Note to editors: illustration available from dan.

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The Titan (S)TEM system features unparalleled overall stability to
break the 1-Angstrom barrier.7 Angstrom and STEM resolution
just below 1.

This news release contains forward-looking statements that include
statements about future product capability and advanced development program. "Other applications, to be
developed over a longer term, may involve partnerships.

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Customers who previewed and ordered the Titan under non-disclosure agreements
will be the first to receive the new system. Equipped with the
sub-Angstrom imaging of the Titan, scientists will have a greatly enhanced
ability to observe and characterize materials. The program is
headed by several regional USA laboratories that combined to form the TEAM
project. Single CNT tips are grown to customer
specifications directly on commercially available silicon SPM cantilevers. "Xidex's process allows for
great control over the CNT tip structure such as diameter, length and
orientation, which is crucial for the uses desired by SEMATECH's member
companies. Since then, the company has executed several projects funded by the
National Science Foundation, the Army Research Office, the National
Institute of Standards and Technology and SEMATECH.

epma scharf

This will enable customers to obtain
resolution and capability they need today, knowing that they can expand the
system's resolution limits as their requirements change . FEI
assumes no duty to update forward-looking statements. It enables
microscopy to be taken to the next level where new discoveries on the
structure-property relationships of functional materials become possible. We
are starting with tips for depth measurements and will expand to meet our
customers ' other advanced metrology needs.org

About Xidex

Xidex Corporation is an Austin-based nanotechnology company in the business
of developing carbon nanotube based mechanical, electrical and logic
devices together with micro- and macro-scale products that incorporate
these nanodevices.

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com . Most importantly , it must be grown by design and not by
chance, and the process must scale to allow batch production of many tips
at the same time."

Compared to conventional silicon tips, CNT tips can be made with much
smaller end radii and very high aspect ratios, enabling them to reach into
the difficult -to-access spaces between microscopic features, Xidex
officials explained.

kunkel electron

FEI's
award-winning and record breaking Tecnai G2 TEM will continue to be marketed
and supported for customers who do not need aberration-corrected resolution. "As the
world's leader in providing Tools for Nanotech (TM), FEI will continue to
invest in the development of these key technologies and market platforms ."

Allgair said the project will reinforce the ability of atomic force
microscopy (AFM) to enhance device engineering and volume production for
future technology nodes, where small-diameter CNT tips of 1 to 20 nm will
be required."

"This is the key to making well-defined ultrahigh -resolution SPM tips for
critical dimension metrology applications," said Dr.

microvision xrf

New Titan(TM) (S)TEM , With Resolution Below 0.
"The Titan 80-300 is a significant platform for the nanotechnology era. The microscope
transfers information deep into sub-Angstrom resolution making way for the
highest performance available in both transmission electron microscopy (TEM)
and scanning transmission electron microscopy (STEM) modes.

This news release contains forward-looking statements that include
statements about future product capability and an advanced development program
that was discussed in the November 2004 news release.

PRESS RELEASE AMRC Research Leads to Promising Nanotechnology Application for Chip Industry

xidex. SEMATECH, the SEMATECH logo, AMRC, Advanced
Materials Research Center , ATDF, the ATDF logo, Advanced Technology
Development Facility, ISMI and International SEMATECH Manufacturing
Initiative are servicemarks of SEMATECH, Inc. All other servicemarks and
trademarks are the property of their respective owners.

microanalysis lucis

, FEI today announced that
it has begun shipping its new scanning/ transmission electron microscope
(S/TEM), the Titan(TM) 80-300 as it publicly unveiled the new system at the
Microscopy and Microanalysis 2005 Conference in Honolulu. This multi-year microscopy development project calls for a new
microscope, based on the Titan platform, that should enable extraordinary new
scientific opportunities for direct observation aimed at enabling analysis of
individual nanostructures at an unprecedented resolution of 0.

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. This will let us make CNT
tips attractive to a wider customer base at more attractive prices.edu/.

edx spectrometer

The all-new Titan 80-300 is designed as a dedicated and highly-upgradeable
aberration-corrected system that will enable corrector and monochromator
technology to enter into mainstream nanotechnology research and industrial
markets. FEI's continuing advances in ultra-high TEM resolution,
coupled with our market-leading focused ion beam (FIB) technologies , deliver
powerful and vital tools for researchers, developers and manufacturers who are
increasingly focused on nanoscale discovery and product commercialization,"
commented Vahe Sarkissian, FEI's chairman and chief executive officer. "This project is an ideal fit for the AMRC because it
involves a Texas -based nanotechnology company with significant job-creation
potential, actively collaborating with a state university. "Xidex is
currently focused on CNT tips for semiconductor industry applications . We
plan to make carbon nanotube tips available commercially this year.

microanalysis microvision

This new system is the most powerful member
of FEI's fleet of ultra-high S/TEM resolution and focused ion beam (FIB)
technologies that deliver enabling tools for researchers, developers and
manufacturers needing greater access to the nanoscale," commented Vahe
Sarkissian, FEI's chairman and chief executive officer.
At the Microscopy and Microanalysis conference, FEI also announced new
software, hardware and accessories for its award-winning Tecnai(TM) G2 TEM
series that is targeted for those applications that do not require the next
level of aberration-corrected resolution. Additional information is
available at www. It has extensive experience
collaborating with equipment and materials suppliers, as well as government
and academic research centers, to refine the tools and technology necessary
to produce future generations of chips.

lucis bsed

The Titan announcement comes just
one year after FEI became the first developer and manufacturer of commercial
electron microscopes to achieve sub-Angstrom resolution on FEI's
market-leading Tecnai(TM) microscope using a monochromator and an aberration
corrector .newscom.

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. Since its introduction in 1998, more
than 500 Tecnai TEM's have been installed worldwide in all markets that FEI
serves: NanoBiology, NanoResearch and NanoElectronics .

The work is being done with AMRC funding, under a contract with SEMATECH.

About the AMRC

The AMRC focuses on leading-edge materials and capabilities for
next-generation semiconductors , as well as cutting-edge research in
nanotechnology, biotechnology, and other related advanced high -tech areas.

About UT-Chemistry and Biochemistry

The Department of Chemistry and Biochemistry at The University of Texas at
Austin offers opportunities for world-class research across a broad range
of chemical and biochemical fields.

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FEI Announces World's Most Advanced Electron Microscope

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FEI Begins Customer Shipments of Titan(TM) S/TEM World's Most Advanced Electron Microscope

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PRESS RELEASE AMRC Research Leads to Promising Nanotechnology Application for Chip Industry

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