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News Release
June 28, 2000


MIDDLEFIELD, CONNECTICUT June 28, 2000…..Zygo Corporation (NASDAQ:ZIGO) Zygo Corporation, a world leader in interferometric measuring equipment, announces a new OEM relationship for the ZMI 510™ Position Feedback System. Zygo Corporation will supply a solution comprised of an interferometer and optical components to a major supplier of defect review and surface metrology equipment. This OEM win will result in shipments starting in July 2000 and is expected to accelerate as this new, higher accuracy wafer platform becomes a greater percentage of this major supplier's product mix.

The ZMI 510™ is a Position Feedback System targeted to compete with high-end optical encoder feedback systems, delivering superior performance while minimizing integration costs. This makes the ZMI 510™ an ideal choice of OEMs converting from open loop or less accurate closed loop systems based on optical encoders to high accuracy interferometric technology. In this particular application, the ZMI 510™ improved throughput and performance by allowing the stage to be positioned with greater precision than the previous feedback mechanism. This reduced the time that the system "searched" for the correct features in the system field of view.

"This new OEM relationship clearly demonstrates how Zygo Corporation can package our differentiated technology and systems integration expertise to provide the customer with a complete metrology solution," comments Daniel Hobbs, Market Manager for ZMI Systems.

"We are pleased with the continued growth of the ZMI business in the semiconductor industry," said Brian Monti, Vice President of Sales and Marketing. "This important new OEM win is a further indication of the growing market preference for Zygo Corporation's differentiated displacement measurement technology and of the effectiveness of our systems integration expertise and support in this area."

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 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 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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