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Abstract:
Project Will Focus on Developing Tools for Single-Atom Imaging and Processing of Material Structures

FEI Announces Joint Research Program with the FOM Foundation

HILLSBORO, OR | Posted on December 18th, 2007

FEI Company (Nasdaq:FEIC) and the Netherlands-based FOM foundation have announced a joint nanotechnology research project. The goal of the Industrial Partnership Program (IPP) is to advance electron microscopes and focused ion beam systems (FIBs) so that the structure of materials can be made visible and processed at the single-atom scale. FOM-sponsored IPPs link leading academic and industrial physical research to realize specific commercial goals.

The ambitious research program will have a two-fold focus. The first is to advance and fully harness the potential that lies in existing electron microscopes and ion beam systems for a full range of applications in physics and biology. The second focus of the program will include researching the interaction between electron beams, ion beams, laser light and matter. This will result in much-needed fundamental innovations for future generations of microscopes and focused ion beam systems.

"Material processing at the atomic level is a primary emphasis at FEI and an area to which we devote extensive research," explains Frank de Jong, FEI Company's director of research and technology. "However, beyond making structures visible, we need to make the transition from static to moving images. Five years from now, we want to be able not only to change an atomic structure but also to see it happening. This will require new breakthroughs in both knowledge and technology and the range of skills that this effort requires is vast. This cooperative effort with academic partners will bring the best resources available to the program."

High expectations are currently being placed on nanotechnology discovery and development in terms of providing innovative solutions to a range of social challenges such as clean and renewable energy sources, water management, healthcare and food supply. Continued breakthroughs in research and development need to be achieved in both science and industry if nanotechnology is to meet these expectations. FOM and FEI believe that the results of the program will benefit a wide range of industries including microelectronics, chemistry and catalysis, biosciences and pharmaceuticals, and the automotive industry.

The FOM-FEI research program has a five-year term and a total budget of EUR 2.7 million. As well as providing financial input, FEI Company will also make a highly advanced focused ion beam (FIB) system available to project researchers. The program will run at TU Delft, TU Eindhoven, the FOM Institute AMOLF and FEI laboratories in the Netherlands and the United States.

About FOM

The Foundation for Fundamental Research on Matter (FOM) promotes fundamental physics research in the Netherlands. FOM's activities serve the common good as well as the interests of higher education and industry. With around one thousand employees and a turnover of EUR 80 million, FOM carries out top research within four institutes and 180 working parties drawn from Dutch universities. The FOM receives an annual budget of EUR 3 million for Industrial Partnership Programmes. See also: www.fom.nl.

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About FEI Company
FEI (Nasdaq:FEIC) is a world leader in pioneering industry-leading technologies and applications that deliver imaging solutions for 3D characterization, analysis and modification/prototyping with resolutions down to the sub-Ångström level. Our customers, working in advanced research and manufacturing, are supported by field-experienced applications specialists and open access to FEI’s prestigious global user network so they can succeed in accelerating nanoscale discovery and contribute to better living through new product commercialization. FEI’s NanoPorts in North America, Europe and Asia provide centers of technical excellence where our world-class community of customers and specialists collaborate on the ongoing development of new ideas and innovative solutions. FEI has sales and service operations in more than 50 countries around the world. More information can be found at: http://www.fei.com .

This news release contains forward-looking statements that include statements about future performance and new applications of, and development work through our electron microscopes and focused ion beam tools. Factors that could affect these forward-looking statements include but are not limited to the inability of project partners to develop and deploy the expected new applications or to achieve the development work. Additional factors that could affect these forward-looking statements include, but are not limited to changes to or cancellation of the development program; the inability of FEI, its suppliers or project partners to make the technology advances required for the program to achieve anticipated results; problems arising during execution of the program that delay it or cause results to vary from the anticipated results; unforeseen technology challenges; and failure of a key supplier or program partner. Please also refer to our Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S. 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. FEI assumes no duty to update forward-looking statements.

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Contacts:
FEI Company
Dan Zenka, APR, +1-503-726-2695
Public Relations

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