FEI Company Reports Inducement Grants Under NASDAQ Market Rule 4350

Aug 14, 2006, 01:00 ET from FEI Company

    HILLSBORO, Ore., Aug. 14 /PRNewswire-FirstCall/ -- FEI Company (Nasdaq:  
 FEIC) announced that, in accordance with NASDAQ Marketplace Rule 4350 and
 as previously disclosed in its report on Form 8-K dated July 27, 2006, Don
 R. Kania was today granted inducement awards consisting of 75,000
 Restricted Share Units and a stock option covering 100,000 shares of common
 stock. These inducement awards were granted outside of FEI's 1995 Stock
 Incentive Plan and without shareholder approval pursuant to NASDAQ
 Marketplace Rule 4350(i)(1)(A). The grants have the following terms: 25,000
 Restricted Share Units vest in equal annual installments over four years
 subject to continued employment through each relevant date, the remaining
 50,000 Restricted Share Units vest on the first anniversary of the date of
 grant, August 14, 2007, subject to continued employment through such date;
 the option has been classified as a non-qualified stock option, has an
 exercise price equal to the fair market value on the grant date, has a
 seven-year term and will vest in equal annual installments over four years
 subject to continued employment through each relevant date. Pursuant to the
 terms of an executive severance agreement with Dr. Kania, and as previously
 disclosed, all of these inducement awards will vest in full if Dr. Kania is
 terminated without cause, resigns for good reason, or terminates due to
 death or disability within 18 months following a change of control of FEI
 Company, provided that Dr. Kania was employed as CEO and President of FEI
 Company at the time of such change of control.
     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 and provide
 innovative solutions for customers working in NanoBiology, NanoResearch and
 NanoElectronics. FEI's solutions deliver ultra-high resolution and
 automation to speed the pace of product release and production cycles for
 semiconductor, data storage, and MEMS manufacturers. With R&D centers in
 North America and Europe, and sales and service operations in more than 50
 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: www.fei.com .