-1 April 2005 -

Emcore's $13.2m earnout

Emcore Corp has received its first earn-out from Veeco Instruments Inc in connection with the November 2003 sale of the capital equipment business TurboDisc to Veeco is $13.2m.

In November 2003, Emcore sold its TurboDisc capital equipment business to Veeco in a transaction that is valued at up to $80m. The selling price was $60.0 million in cash at closing, with an additional aggregate maximum payout of $20m over the next two years.

Under the terms of the transaction, Emcore will receive in cash or stock 50% of all revenues from the TurboDisc business that exceed $40m in each of the two years, beginning January 1, 2004. Veeco agreed to make their first earn-out payment in cash.

Net sales of TurboDisc products for the 12 months ended December 31, 2004, amounted to $66.3m resulting in an earn-out of $13.2m for year one of the two-year earn-out agreement. Emcore received its cash payment from Veeco on March 31, 2005.