CVC Announces Fiscal 2000 First Quarter Financial Results

Rochester, NY. First Quarter Highlights:

- Quarterly revenues increase 72% to $25.2 million ss. Net income
reaches $545,000

- Operating leverage realized from CVC/Commonwealth merger

- Continued strength in existing markets ss. Continued penetration
into optical telecommunications market

CVC, Inc. (Nasdaq: CVCI), a worldwide supplier of cluster tool equipment for the fabrication of thin film recording heads, semiconductor devices and optical components for the telecommunications market, today reported revenue and net income for its fiscal 2000 first quarter ended December 31, 1999.

For the quarter, revenues were $25.2 million, a 72% increase over revenues of $14.7 million for the fiscal 1999 first quarter ended December 31, 1998. Approximately 78% of revenues were attributable to sales of Giant magneto-resistive (GMR) process equipment, integrated etch and deposition equipment, and ultra thin insulator modules for the fabrication of thin film recording heads for the data storage industry. In addition, shipments included deposition process equipment for the specialty semiconductor industry and the optical telecommunications industry, an emerging growth market for the Company. Prior year s results do not reflect the purchase of Commonwealth Scientific in May 1999.

Net income for the quarter was $545,000, or $0.05 per share based on 11.9 million diluted shares, compared to $480,000, or $0.07 per share based on 7.3 million diluted shares for the comparable period
last year. The increase in the weighted average number of shares outstanding is due primarily to the successful completion of the Company s initial public offering in November 1999.

Compared to the prior quarter ended September 30, 1999, revenues of $25.2 million in the quarter ended December 31, 1999 decreased from $27.1 million or $1.9 million, while net income for the current quarter of $545,000 compares to net income of $832,000 for the quarter ended September 30,1999, a decrease of $287,000. The results in the December quarter reflect delays in domestic capital equipment purchases, partially offset by increased business from the international market.

Since the acquisition of Commonwealth Scientific Corporation in May 1999, CVC has continued to enhance CVC/Commonwealth s IBE and IBD technology. CVC believes the CONNEXION(R) Cluster Tool integrated solution combining PVD and IBE and/or IBD technology will enable customers to reduce costs, increase throughput and increase yield.

Comments From Management

Christine B. Whitman, Chairman, President and Chief Executive Officer of CVC, Inc., said, "The fiscal 2000 first quarter was marked by significant strategic and operational achievements. While the Company
continued to ramp up its offerings of GMR process equipment, it also experienced heightened demand
for integrated products combining PVD technology with Ion Beam Etch (IBE) and Ion Beam Deposition
(IBD). During the quarter, the Company extended its leadership position in the GMR market and continued its penetration into new, high-growth markets, such as telecommunications. Additionally during the fiscal first quarter, the Company successfully completed its initial public offering."

Whitman concluded, "Looking forward, we will continue to work with our extensive customer base on equipment advances and materials process solutions addressing the migration to new technologies, such
as advanced GMR and next generation writer applications. We also intend to leverage our core deposition technology and CVC/Commonwealth s IBD/IBE technology to take advantage of the growing demand for optical components for the telecommunications market. CVC s technological leadership in the deposition of thin film materials, specifically our strength in Metal-Organic Chemical Vapor Deposition (MOCVD), positions the Company to leverage the use of MOCVD technology in next-generation thin film heads and second-generation copper processing for the semiconductor industry."

About CVC

CVC provides cluster tool manufacturing equipment for Physical Vapor Deposition (PVD) by plasma sputtering or Ion Beam Deposition (IBD), Ion Beam Etch (IBE), Diamond-like Carbon (DLC) and
Metal-Organic Chemical Vapor Deposition (MOCVD). CVC s process solutions address the production of evolving tape and disk drive recording head fabrication, optical components for telecommunications and applications such as GaAs, passive components, MRAM, bump metallization, and next generation logic devices. CVC, Inc. with operations in Fremont, California; Alexandria, Virginia; and Rochester, New York provides customer service and technical support near major customer sites throughout the world. For more information about CVC, visit the World Wide Web at http://www.cvc.com.

Forward Looking Statements

This press release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated revenues and expenses, and products or service line growth, may be significantly and materially impacted by certain risks and uncertainties, including, but not limited to, failure to meet operating objectives or to execute the operating plan of the Company; competition; the cyclical nature of the data storage and semiconductor industries; risks associated with the acceptance of new products by individual customers and by the marketplace; risks associated with dependence on major customers; the impact of economic downturns in foreign markets; integration of acquired companies; attraction and retention of key employees; and other risks referenced from time to time in the Company s filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the year ended September 30, 1999 and the Company s prospectus, dated November 12, 1999, as filed with the SEC. -0- *T

Contact:
CVC, Inc.
Emilio DiCataldo
Chief Financial Officer
Tel: 716/458-2550 Ext. 3215