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News Release
June 29, 2006

Zygo Corporation Receives Multi-Million Dollar Laser Fusion Optics Contract

MIDDLEFIELD, CT, Jun 29, 2006 (MARKET WIRE via COMTEX News Network) -- Zygo Corporation (NASDAQ: ZIGO) announced today that it has received another production contract award for its Laser Fusion Program. The initial order, valued at approximately $1.0 million, is scheduled to be shipped in fiscal 2007. The agreement further provides for optional orders running through 2013 for a total potential value of approximately $45.0 million. The work will be performed at ZYGO's state-of-the-art laser fusion optics manufacturing facility located in Middlefield, Connecticut.

"ZYGO continues to be a preferred supplier to the High Energy Laser Programs around the world," said Bruce Robinson, President and CEO at Zygo Corporation. "ZYGO has a long history of servicing these customers with amplifier optics and other very specialized components where quality is critical to the laser performance."

Amplifier optics are critical to the operation of high energy lasers that are used in fusion research. To date, Zygo Corporation has delivered more than 2,000 High Energy Laser amplifier optics to the National Ignition Facility located at the University of California Lawrence Livermore National Laboratory, as well as to other customers around the world.

Zygo Corporation, 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 our 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 of our customers, fluctuations in net sales to our major customer, manufacturing and supplier risks, dependence on and timing of new product development, rapid technological and market change, risks in international operations, dependence on proprietary technology and key personnel, length of the sales cycle, environmental regulations, and stock price. Further information on potential factors that could affect Zygo Corporation's business is described in our reports on file with the Securities and Exchange Commission, including Amendment No. 2 to our Form 10-K/A for the fiscal year ended June 30, 2005.

For Further Information Call:
Walter A. Shephard
Vice President, Finance, Chief Financial Officer and Treasurer
Voice:  860-704-3955
Contact via http://www.marketwire.com/mw/emailprcntct?id=5CD07FC1E694706C

SOURCE: Zygo Corporation

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