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News Release
April 23, 2004

ZYGO Announces $8 Million in Orders for Flat Panel Photo Spacer Metrology Tools

MIDDLEFIELD, CT, Apr. 23, 2004 (MARKET WIRE via COMTEX) -- Zygo Corporation (NASDAQ: ZIGO) announced today that it has received significant orders for optical profiling systems used for topography measurement of photo spacers critical to the flat panel assembly process. These orders were received from multiple flat panel manufacturers over a six week period from late in ZYGO's third quarter to early in the fourth quarter of fiscal 2004. The value of these orders is in excess of 8 million dollars. ZYGO expects to start realizing revenue from these shipments in the first quarter of fiscal 2005.

The system, known as the FPD-HS series of ZYGO's flat panel technology, is an in-line process tool which measures the topography of color filter photo spacers prior to being combined with the Thin-Film Transistor (TFT) in the assembly cell. These critical features must be measured with nanometer precision in order to secure the optical characteristics and performance required when liquid crystal is sandwiched in the final assembly cell via a process known as "One Drop Fill" (ODF).

By sampling photospacer topography at key locations on the panel, Flat Panel Display manufactures can use the ZYGO system to feedforward this critical data to the ODF process to control the volume of liquid crystal material being used when combining the TFT component with the color filter. This replaces the traditional capillary vacuum process, resulting in significant improvements in process yield.

The ZYGO HS4 system is a fourth-generation optical profiling tool which permits metrology MAM (measure, analyze, move) time to be reduced by more than 50% while maintaining measurement integrity and precision. Another key capability of the ZYGO flat panel system technology is the ability to achieve its specified performance in less than ideal fab floor environments, where acoustical-mechanical disturbances would render alternative metrology techniques inoperable.

Originally developed in 1999 as a development tool for advanced color filter development centers in Japan, earlier versions of the ZYGO flat panel photospacer metrology system were primarily used in laboratory environments. The advent of the ODF process called for an on-line process control tool, and the ZYGO FPD-HS technology is ZYGO's answer for flat panel manufacturers looking to maintain metrology precision on the factory floor.

"We are very pleased with the market acceptance of the ZYGO HS4 family of flat panel optical profiling tools," said Brian J. Monti, Vice president of Worldwide Sales, and General Manager of the Flat Panel Business Unit. "This system is key to ZYGO's focus of moving our optical metrology technology from the lab to the fab floor in critical applications essential to next generation flat panel manufacturing. It is our belief the HS4 generation of ZYGO interferometric optical profilers will permit our customers to realize continued yield enhancement through its dual role in critical inspection and metrology."

Zygo Corporation (NASDAQ: 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 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.

For Further Information Call:
Brian J. Monti
Vice President Worldwide Sales and Marketing

SOURCE: Zygo Corporation

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