Revenue for the second quarter of fiscal 2008 totaled $255.3 million,compared to revenue of $241.8 million for the same period a year ago.Varian Semiconductor recorded net income of $34.1 million, or $0.45 perdiluted share during the second quarter of fiscal 2008, compared to netincome of $38.4 million, or $0.46 per diluted share for the same period ayear ago.

Gary Dickerson, Varian Semiconductor's chief executive officer, said,"Varian's market share increased from 43.2% in 2006 to 64.5% in 2007. Weincreased market share in the high current and medium current marketsegments and maintained 100% of the fast-growing, ultra high dose market.Our market share increases across the segments were driven by the productdevelopment and financial leverage of the VIISta common product platform.We expect to continue to leverage the VIISta platform for additional rapidproduct introductions and operating leverage."

Bob Halliday, chief financial officer, stated, "Second quarter revenues andoperating margin were approximately what we expected for the quarter.However, the outlook for the remainder of the year softened during thequarter, particularly in Asia. This reduced foreign outlook resulted in ahigher share of U.S. taxable income, which is taxed at a higher tax rate.The tax rate for the year-to-date period has increased to 38.2%, with asecond quarter tax rate of 45% to catch up for the amount recordedpreviously. With a normalized business mix in the future, we expectVarian's tax rate to trend down over the next few years. The higher taxrate in the second quarter reduced earnings by $0.10 per diluted share."

Bob Halliday also provided forward guidance for the third quarter of fiscal2008. "We currently expect revenue to be between $175 and $185 million.Earnings per share are anticipated to range from $0.21 to $0.26 per dilutedshare due to a tax rate of approximately 39.5%."

Varian Semiconductor will hold a conference call, broadcast over theInternet, at 5:30 p.m. eastern time today to discuss Varian Semiconductor'soperating results and outlook. Access to the call is available through theinvestor relations page on Varian Semiconductor's website at www.vsea.com.Replays will be available via the website for two weeks after the call.

About Varian Semiconductor Equipment Associates, Inc.

Varian Semiconductor is the leading producer of ion implantation equipmentused in the manufacture of semiconductors. Varian Semiconductor isheadquartered in Gloucester, Massachusetts, and operates worldwide. VarianSemiconductor maintains a website at www.vsea.com. The informationcontained in Varian Semiconductor's website is not incorporated byreference into this release, and the website address is included in thisrelease as an inactive textual reference only.

Note: This press release contains forward-looking statements for purposesof the safe harbor provisions under The Private Securities LitigationReform Act of 1995.