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News Release
December 1, 2000

ZYGO TERAOPTIX EXPANDS PRODUCTION CAPACITY

HOLLISTON, MASSACHUSETTS (December 1, 2000) ZYGO TeraOptix Inc. has completed the acquisition of a facility containing 87,000-square-feet of office and manufacturing space on 34 acres of land located adjacent to Route 495 in Westboro, Massachusetts. ZYGO TeraOptix will be taking immediate occupancy while manufacturing fit-up of the space continues. Operations will be maintained at ZTO's Holliston facility until the production lines in Westboro are fully certified, with full operation planned for March 2001.

"We, at ZYGO TeraOptix, are excited about this acquisition. We have outgrown our current facility in Holliston, and this will provide much needed space. It will also allow for future expansion as we execute our business plan in the telecommunications industry," commented John Berg, president of ZYGO TeraOptix.

"The acquisition of this facility continues to demonstrate ZYGO's commitment to be a major supplier for optical networking leveraged by our extensive experience and 30-year heritage in optics, optical metrology, and automation," added Bruce Robinson, president and CEO of Zygo Corporation.

Zygo Corporation, headquartered in Middlefield, Connecticut, is a worldwide developer and supplier of high precision optics, optical, and fiber optic assemblies, high performance instruments, and automation for the telecommunications, semiconductor, 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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