FEI Reports Record Revenue and Earnings

Revenue of $211.1 Million Up 45% From Q2-2010

GAAP EPS of $0.62

HILLSBORO, Ore., Aug. 2, 2011 (GLOBE NEWSWIRE) -- For the second quarter of
2011, FEI Company (Nasdaq:FEIC) reported record revenue and earnings for the
third quarter in a row. Bookings were the highest for any second quarter in the
company's history and the second-highest ever.

Revenue of $211.1 million was up 45% compared to $146.0 million in the second
quarter of 2010 and up 7% from $197.0 million in the first quarter of 2011.

Net income was $26.1 million or $0.62 per diluted share, compared with $16.2
million or $0.40 per diluted share in the second quarter of 2010 and $22.3
million or $0.54 per diluted share in the first quarter of 2011.

The gross margin in the second quarter was 45.3%, compared with 41.0% in the
second quarter of 2010 and 43.6% in the first quarter of 2011. Operating income
was 17.3% of sales in the quarter, compared with 2.4% in the second quarter of
2010 and 16.2% in the first quarter of 2011.

Last year's second quarter results included $9.1 million of restructuring
charges that reduced operating income, compared with restructuring charges of
$0.8 million in this year's second quarter. The 2010 second quarter also
included a net tax benefit of $13.5 million that increased net income, compared
with tax expense in the latest quarter of $9.6 million.

For the second quarter of 2011, net bookings were $204.5 million, up 17% from
the second quarter of 2010 and up 7% from the first quarter of 2011. The backlog
at the end of the quarter was $459.1 million. The book-to-bill ratio for the
quarter was 0.97 to 1.

Gross cash, investments and restricted cash at the end of the quarter was $471.3
million, an increase of $19.5 million during the quarter and $47.5 million since
the end of 2010.

"We had another very good quarter, with revenue and earnings again at the
highest level in our history," said Don Kania, president and CEO of FEI. "Gross
margins expanded as expected, and operating margins increased. Bookings remained
strong with double-digit sequential growth in the Research and Industry and
Electronics market segments. For the third quarter, we expect significant
revenue growth compared with last year and a slight normal seasonal decline in
revenue compared with the second quarter. We are projecting revenue growth of
approximately 30% for 2011 over 2010."

Bookings and revenue comparisons for the company's market segments and other
data are included in the supplementary information attached to this release,
along with detailed statements of operations and balance sheets.

Guidance for Q3 2011

FEI expects revenue in the third quarter of 2011 to be in the range of $195
million to $210 million. Bookings are expected to be in the range of $175
million to $195 million. GAAP earnings per share are expected to be in the range
of $0.51 to $0.57.

Investor Conference Call -- 2:00 p.m. Pacific time, Tuesday, August 2, 2011

Parties interested in listening to FEI's quarterly conference call may do so by
dialing 1-877-941-8631 (U.S., toll-free) or 1-480-629-9723 (international and
toll), with the conference title: FEI Second Quarter Earnings Call, Conference
ID 4459281. A telephone replay of the call will be available at 1-800-406-7325
(U.S., toll-free) or 1-303-590-3030 (international and toll) with the passcode:
4459281#. The call can also be accessed via the web by going to FEI's Investor
Relations page at www.fei.com, where the webcast will also be archived.

About FEI

FEI (Nasdaq:FEIC) is a leading diversified scientific instruments company. It is
a premier provider of electron and ion-beam microscopes and tools for nanoscale
applications globally and across many industries: industrial and academic
materials research, life sciences, semiconductors, data storage, natural
resources and more. With a history of over 60 years of technological innovation
and leadership, FEI has set the performance standard in transmission electron
microscopes (TEM), scanning electron microscopes (SEM) and DualBeams(TM), which
combine a SEM with a focused ion beam (FIB). FEI's imaging systems provide 3D
characterization, analysis and modification/prototyping with resolutions down to
the sub-Ångström (one-tenth of a nanometer) level. FEI has over 1,900
employees and sales and service operations in more than 50 countries around the
world. More information can be found at: www.fei.com.

The FEI Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6379

Safe Harbor Statement

This news release contains forward-looking statements that include statements
regarding our guidance for revenue and earnings per share for the third quarter
of 2011, expected annual revenue growth for 2011 and expected bookings for the
third quarter of 2011. Forward-looking statements may also be identified by
words and phrases that refer to future expectations, such as "guidance",
"projecting", "expect", "expects", "are expected", "will", "estimate", and other
similar words and phrases. Factors that could affect these forward-looking
statements include, but are not limited to, the global economic environment;
lower than expected customer orders and potential weakness of the Research and
Industry, Electronics and Life Sciences market segments; problems in obtaining
necessary product components in sufficient volumes on a timely basis from our
supply chain; bankruptcy or insolvency of customers or suppliers; cyclical
changes in the data storage and semiconductor industries, which are the major
components of Electronics market revenue; fluctuations in foreign exchange,
interest and tax rates; changes in tax rate and laws, accounting rules regarding
taxes or agreements with tax authorities; the ongoing determination of the
effectiveness of foreign exchange hedge transactions; reduced profitability due
to failure to achieve or sustain margin improvement in service or product
manufacturing; the relative mix of higher-margin and lower-margin products;
risks associated with shipping a high percentage of the company's quarterly
revenue in the last month of the quarter; customer requests to defer planned
shipments; increased competition and new product offerings from competitors;
lower average sales prices and reduced margins on some product sales due to
increased competition; failure of the company's products and technology,
including new products, to find acceptance with customers; inability to deploy
products as expected or delays in shipping products due to technical problems or
barriers; potential shipment or supply chain disruptions due to natural
disasters or terrorist attacks; changes to or potential additional
restructurings and reorganizations not presently anticipated; reduced sales due
to geopolitical risks; changes in trade policies and tariff regulations; changes
in the regulatory environment in the nations where we do business; additional
selling, general and administrative or research and development expenses;
potential reduced governmental spending due to budget constraints and current
uncertainty around global sovereign debt; additional costs related to future
merger and acquisition activity; and failure of the company to achieve
anticipated benefits of acquisitions and collaborations, including failure to
achieve financial goals and integrate future acquisitions successfully. 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.

FEI Company and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)

December
July 3, April 3, 31,

2011 2011 2010
---------- ---------- --------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $305,923 $367,265 $277,617
Short-term investments
in marketable
securities 18,855 3,362 44,026
Short-term restricted
cash 28,615 30,250 22,114
Receivables, net 207,075 178,755 183,254
Inventories, net 202,769 179,487 155,964
Deferred tax assets 10,431 10,514 11,505

Other current assets 35,890 38,601 23,126
---------- ---------- --------
Total current assets 809,558 808,234 717,606
Non-current investments
in marketable securities 76,135 12,572 38,662
Long-term restricted cash 41,815 38,352 41,377
Non-current inventories 51,072 48,402 47,976
Property plant and
equipment, net 82,039 81,799 80,681
Goodwill 44,849 44,832 44,800
Deferred tax assets 770 869 1,072

Other assets, net 14,570 15,077 12,248
---------- ---------- --------

TOTAL $1,120,808 $1,050,137 $984,422
========== ========== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $61,348 $55,656 $51,529
Accrued liabilities 60,163 48,497 51,209
Deferred revenue 84,549 86,232 81,445
Income taxes payable 14,078 9,287 3,715
Accrued restructuring,
reorganization and
relocation 2,613 3,070 4,884
Other current
liabilities 29,400 31,352 31,306
---------- ---------- --------
Total current
liabilities 252,151 234,094 224,088
Convertible debt 89,012 89,012 89,012
Other liabilities 44,902 41,283 38,148
SHAREHOLDERS' EQUITY:
Preferred stock - 500
shares authorized; none
issued and outstanding -- -- --
Common stock - 70,000
shares authorized;
39,150, 38,690, and
38,280 shares
issued and outstanding
at July 3, 2011, April
3, 2011 and December
31, 2010 534,161 520,968 509,145
Retained earnings 123,396 97,336 75,024
Accumulated other
comprehensive income 77,186 67,444 49,005
---------- ---------- --------
Total shareholders'
equity 734,743 685,748 633,174
---------- ---------- --------

TOTAL $1,120,808 $1,050,137 $984,422
========== ========== ========

FEI Company and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Twenty-Six Weeks

Thirteen Weeks Ended Ended

----------------------------
--------------------
July 3, April 3, July 4, July 3, July
4,

2011 2011 2010 2011 2010

-------- -------- -------- ----------
--------
NET SALES:

Products $168,896 $156,032 $108,931 $324,928
$220,808

Service and components 42,245 40,928 37,117 83,173
74,339
-------- -------- -------- ----------
--------

Total net sales 211,141 196,960 146,048 408,101
295,147
-------- -------- -------- ----------
--------
COST OF SALES:

Products 86,256 83,595 62,068 169,851
126,756

Service and components 29,190 27,461 24,172 56,651
49,378
-------- -------- -------- ----------
--------

Total cost of sales 115,446 111,056 86,240 226,502
176,134
-------- -------- -------- ----------
--------

Gross margin 95,695 85,904 59,808 181,599
119,013
-------- -------- -------- ----------
--------
OPERATING EXPENSES:

Research and development 19,619 17,940 15,616 37,559
32,748
Selling, general and

administrative 38,774 35,782 31,604 74,556
67,179
Restructuring,

reorganization and

relocation 783 285 9,055 1,068
9,969
-------- -------- -------- ----------
--------

Total operating expenses 59,176 54,007 56,275 113,183
109,896
-------- -------- -------- ----------
--------

OPERATING INCOME 36,519 31,897 3,533 68,416
9,117
-------- -------- -------- ----------
--------

OTHER INCOME (EXPENSE), NET (893) (222) (900) (1,115)
(1,536)
-------- -------- -------- ----------
--------
INCOME BEFORE TAXES 35,626 31,675 2,633 67,301
7,581
INCOME TAX EXPENSE

(BENEFIT) 9,566 9,363 (13,547) 18,929
(12,703)
-------- -------- -------- ----------
--------

NET INCOME $26,060 $22,312 $16,180 $48,372
$20,284
======== ======== ======== ==========
========
BASIC NET INCOME PER SHARE

DATA $0.67 $0.58 $0.43 $1.25
$0.53
======== ======== ======== ==========
========
DILUTED NET INCOME PER

SHARE DATA $0.62 $0.54 $0.40 $1.16
$0.51
======== ======== ======== ==========
========
WEIGHTED AVERAGE SHARES

OUTSTANDING:

Basic 38,883 38,478 38,046 38,686
37,968
======== ======== ======== ==========
========

Diluted 42,566 42,101 41,813 42,359
41,775
======== ======== ======== ==========
========

FEI Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)

Twenty-Six Weeks
Thirteen Weeks Ended (1) Ended (1)
------------------------ ------------------
April July July
July 3, 3, 4, July 3, 4,

2011 2011 2010 2011 2010
-------- ------ ------ ---------- ------
NET SALES:
Products 80.0% 79.2% 74.6% 79.6% 74.8%

Service and components 20.0% 20.8% 25.4% 20.4% 25.2%
-------- ------ ------ ---------- ------

Total net sales 100.0% 100.0% 100.0% 100.0% 100.0%
-------- ------ ------ ---------- ------
COST OF SALES:
Products 40.9% 42.4% 42.5% 41.6% 42.9%

Service and components 13.8% 13.9% 16.6% 13.9% 16.7%
-------- ------ ------ ---------- ------

Total cost of sales 54.7% 56.4% 59.0% 55.5% 59.7%
-------- ------ ------ ---------- ------
GROSS MARGIN:
Products 48.9% 46.4% 43.0% 47.7% 42.6%
Service and components 30.9% 32.9% 34.9% 31.9% 33.6%
Gross margin 45.3% 43.6% 41.0% 44.5% 40.3%
OPERATING EXPENSES:
Research and
development 9.3% 9.1% 10.7% 9.2% 11.1%
Selling, general and
administrative 18.4% 18.2% 21.6% 18.3% 22.8%
Restructuring,
reorganization and
relocation 0.4% 0.1% 6.2% 0.3% 3.4%
-------- ------ ------ ---------- ------
Total operating
expenses 28.0% 27.4% 38.5% 27.7% 37.2%
-------- ------ ------ ---------- ------

OPERATING INCOME 17.3% 16.2% 2.4% 16.8% 3.1%
-------- ------ ------ ---------- ------
OTHER INCOME (EXPENSE),
NET (0.4)% (0.1)% (0.6)% (0.3)% (0.5)%
-------- ------ ------ ---------- ------

INCOME BEFORE TAXES 16.9% 16.1% 1.8% 16.5% 2.6%
-------- ------ ------ ---------- ------
INCOME TAX EXPENSE
(BENEFIT) 4.5% 4.8% (9.3)% 4.6% (4.3)%
-------- ------ ------ ---------- ------

NET INCOME 12.3% 11.3% 11.1% 11.9% 6.9%
-------- ------ ------ ---------- ------

(1) Percentages may not add due to rounding.

FEI COMPANY
Supplemental Data Table
($ in millions, except per share amounts)
(Unaudited)

Q2 Ended Q1 Ended Q2 Ended

3-Jul-2011 3-Apr-2011 4-Jul-2010
---------- ---------- ----------
Income Statement
Highlights
Consolidated sales $ 211.1 $ 197.0 $ 146.0
Gross margin 45.3% 43.6% 41.0%
Stock compensation
expense $ 2.8 $ 2.8 $ 2.7
Net income $ 26.1 $ 22.3 $ 16.2
Diluted net income per
share $ 0.62 $ 0.54 $ 0.40
Interest income add
back included in the
calculation of diluted
EPS $ 0.5 $ 0.5 $ 0.6
Sales Highlights
Sales by Market Segment
Electronics $ 87.0 $ 61.4 $ 56.9
Research & Industry $ 55.1 $ 70.7 $ 37.4
Life Sciences $ 26.8 $ 24.0 $ 14.6
Service and Components $ 42.2 $ 40.9 $ 37.1
Sales by Geography
USA & Canada $ 74.2 $ 63.6 $ 46.1
Europe $ 59.2 $ 58.1 $ 45.7
Asia-Pacific and Rest
of World $ 77.7 $ 75.3 $ 54.2
Gross Margin by Market
Segment
Electronics 51.9% 51.8% 49.0%
Research & Industry 44.9% 43.6% 37.4%
Life Sciences 47.7% 41.2% 34.0%
Service and Components 30.9% 32.9% 34.9%
Bookings and Backlog
Bookings - total $ 204.5 $ 190.8 $ 175.1
Book-to-bill ratio 0.97 0.97 1.20
Backlog - total $ 459.1 $ 465.7 $ 402.5
Backlog - Service and
Components $ 91.4 $ 88.5 $ 81.2
Bookings by Market
Segment
Electronics $ 76.1 $ 64.5 $ 71.6
Research & Industry $ 64.5 $ 55.1 $ 40.4
Life Sciences $ 18.7 $ 23.1 $ 27.5
Service and Components $ 45.2 $ 48.1 $ 35.6
Bookings by Geography
USA & Canada $ 46.7 $ 48.5 $ 57.6
Europe $ 76.0 $ 65.5 $ 47.8
Asia-Pacific and Rest
of World $ 81.8 $ 76.8 $ 69.7
Balance Sheet Highlights
Cash, equivalents,
investments,
restricted cash $ 471.3 $ 451.8 $ 375.5
Operating cash
generated $ 9.2 $ 9.7 $ 25.1
Accounts receivable $ 207.1 $ 178.8 $ 153.2
Days sales outstanding
(DSO) 89 83 96
Inventory turnover 2.4 2.6 2.6
Fixed asset investment $ 3.9 $ 1.9 $ 1.8
Depreciation expense $ 4.7 $ 4.5 $ 4.2
Working capital $ 557.4 $ 574.1 $ 482.0
Headcount (permanent
and temporary) 1,957 1,844 1,791
Euro average rate 1.439 1.366 1.281
Euro ending rate 1.449 1.409 1.258

CONTACT: FEI Company
Fletcher Chamberlin
Treasurer & Communications Director
(503) 726-7710
fletcher.chamberlin@fei.com