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News Release
July 31, 2000

ZYGO EXPANDS AUTOMATION SYSTEMS GROUP

NEW UNIT WILL FOCUS ON PRECISION MANUFACTURING AUTOMATION FOR THE OPTO-ELECTRONIC COMPONENT AND OPTICAL TELECOMMUNICATIONS MARKET

MIDDLEFIELD, CONNECTICUT July 31, 2000…..Zygo Corporation (NASDAQ:ZIGO) today announced the expansion of Longmont, Colorado-based ZYGO Automation Systems Group through the formation of a new Precision Manufacturing Automation Unit. The primary business focus for the unit, which will be located in Delray Beach, Florida, is to provide turnkey high-precision manufacturing automation solutions for the rapidly expanding opto-electronic component and optical telecommunications markets.

In conjunction with Zygo Corporation's recent acquisition of ZYGO TeraOptix (formerly Firefly Technologies), the formation of this new unit further strengthens ZYGO's presence and commitment to volume manufacturing for the opto-electronic component and optical telecommunications market.

Seventeen hardware, software, and development engineers, some of whom were previously employed at the IBM Corporation - Technology Solutions Center in Boca Raton, Florida, that ceased operation on June 30, 2000, are the core of the newly formed operation. In addition to automation products for the opto-electronic and optical telecommunications, other existing Technology Solutions Center technology and licensed products became available to Zygo Corporation as part of a separate agreement.

Zygo Corporation (NASDAQ; ZIGO), headquartered in Middlefield, Connecticut, is a leading worldwide developer and supplier of high precision optics, optical, and fiber optic assemblies, high performance metrology instruments, and automation for the telecommunications, semiconductor, data storage, and industrial markets. See ZYGO's web site at www.zygo.com for additional information.

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 (ZYGO'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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