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News Release
October 5, 1998

ZYGO CORPORATION ADVANCES MAJOR OEM RELATIONSHIP

MIDDLEFIELD, CONNECTICUT (October 5, 1998)......Zygo Corporation (NASDAQ:ZIGO) today announced it reached two important milestones in a major OEM relationship. The Company announced that it shipped the alpha reticle handling subsystem to its customer and that the customer released an order for an additional beta system bringing the total beta units on order to three. Each beta system has a sales value of approximately $1.5 million. Commenting on these important events, Mark Palvino, director of OEM and industrial industry sales, stated, "these are extremely important events in that we are further executing our strategy of building long-term preferred customer relationships by demonstrating to our customers our capability in precision parts handling in a very demanding environment and providing them solutions to their requirements."

Zygo Corporation designs, develops, manufactures, and markets high performance measurement and yield improvement instruments, 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 in Newbury Park and Sunnyvale, California. 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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