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News Release
December 22, 1999


Middlefield, Connecticut - (December 22, 1999) Zygo Corporation's European Joint Venture, ZygoLOT GmbH, received an order for ZMI Displacement Measuring Interferometer systems from Carl Zeiss of Oberkochen, Germany, for use in its leading-edge manufacturing equipment.

Arno Köhler, Managing Director of ZygoLOT GmbH, commented, "This order further validates that ZYGO's ZMI Displacement Measuring Interferometer systems provide the performance advantages required by customers in leading-edge stage metrology applications. We are very pleased that Carl Zeiss has chosen ZYGO as their preferred supplier in this area."

ZYGO's ZMI Displacement Measuring Interferometer systems are the highest performance laser based, real-time position feedback systems available. ZMI Displacement Measuring Interferometer systems measure stage positions to better than 1 nm at velocities over 4 m/s over displacement ranges over 1 m. Typical applications include integrated circuit manufacturing and metrology tools, as well as enabling high performance manufacturing equipment. The ZMI's high performance contributes directly to the positioning and throughput performance needed by these tools as geometric dimensions continue to shrink in the semiconductor and other industries.

Zygo Corporation designs, develops, manufactures, and markets high performance measurement and yield improvement instruments, custom automation systems, and accessories used in high technology industries. The Company is headquartered in Middlefield, Connecticut, and also has operations in Asslar, Germany; Longmont, Colorado; and sales offices throughout the world. ZYGO is traded on the Nasdaq National Market under the symbol ZIGO. Additional information on the Company is available on the Internet at www.zygo.com.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgment on certain issues. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors which could cause actual results to differ materially are described in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

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