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News Release
July 13, 2004

ZYGO Awarded $3.8 Million to Develop and Facilitate Manufacture of Thin Fused Silica Substrates for the National Ignition Facility (NIF)

MIDDLEFIELD, CT--(MARKET WIRE)--Jul 13, 2004 -- Zygo Corporation (NasdaqNM ZIGO) announced today that it has received an order from the University of California, Lawrence Livermore National Laboratory (LLNL) for the development of improved manufacturing technologies and pilot plant equipment required for fabricating thin fused silica optics for the NIF laser. These optics include diffractive optic plates and debris shields. Diffractive optic plates are used to help characterize the power and energy of the laser beam, while the debris shields are used to protect the 192 final focus lenses from target chamber debris and contamination.

"To preclude damage from NIF's powerful laser beam, thin fused silica optics located in the final optics assembly must have fabricated surfaces that are essentially flawless," according to Sol F. Laufer, ZYGO's Vice President of Optics. "This requires the development of new and improved fabrication and testing techniques, as well as equipment to accomplish thin fused silica optics fabrication cost effectively."

NIF, currently under construction at LLNL under funding from the Department of Energy (DOE) and the National Nuclear Security Agency, is designed to produce 1.8-million joules of laser energy, plus a design fusion yield of 20-million joules. Experiments performed on NIF will be essential to DOE's Stockpile Stewardship Program to ensure the safety and reliability of the nation's nuclear stockpile. NIF will also have basic science applications in such areas as astrophysics, hydrodynamics, and material properties, and is expected to provide insight into the viability of fusion as a future economic energy source.

"ZYGO is a major supplier of optics and opto-mechanical assemblies to LLNL," said Bruce Robinson, Zygo Corporation's Chairman and CEO. "We are very pleased to have won this contract and to continue what has been a challenging and rewarding thirty-year relationship with LLNL."

Zygo Corporation (NasdaqNM: ZIGO), headquartered in Middlefield, Connecticut, is a worldwide supplier of optical metrology instruments, precision optics, and electro-optical design and manufacturing services, serving customers in the semiconductor capital equipment and industrial markets. See ZYGO's web site at www.zygo.com for additional information.

All statements other than statements of historical fact included in this news release regarding the Company's financial position, business strategy, plans, anticipated growth rates, and objectives of management of the Company for future operations are forward-looking statements. Forward-looking statements are intended to provide management's current expectations or plans for the future operating and financial performance of the Company based upon information currently available and assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plans," "strategy," "project," and other words of similar meaning in connection with a discussion of future operating or financial performance. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements are fluctuations in capital spending in the semiconductor industry, fluctuations in net sales to our major customer, manufacturing and supplier risks, dependence on new product development, rapid technological and market change, international operations, dependence on proprietary technology and key personnel, length of the sales cycle, environmental regulations, and changes in expected costs of discontinued operations. Further information on potential factors that could affect ZYGO Corporation's business is described in the Company's reports on file with the Securities and Exchange Commission, including its Form 10-K for the fiscal year ended June 30, 2003.


Contact:

For Further Information Call:
Bruce Robinson
President and CEO
Voice: 860 704-5109


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