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News Release
October 16, 2006

Zygo Corporation Receives First Order for Z3D-7200™ Multifunctional Wafer Metrology and Inspection Tool

MIDDLEFIELD, CT, Oct 16, 2006 (MARKET WIRE via COMTEX News Network) -- Zygo Corporation (NASDAQ: ZIGO) today announced that it has received its first order from a leading silicon wafer supplier for the new Z3D-7200™ multifunctional wafer metrology and inspection tool. This system will be deployed to support the customers' 300mm wafer capacity expansion.

The recently announced Z3D-7200™ is the newest addition to ZYGO's line of production-ready optical metrology tools. It employs a compact, multifunctional measurement head providing high-resolution surface topography, film thickness, and bow/warp measurements in addition to edge bevel inspection. The system design accommodates 200 and 300mm wafers, and emphasizes compact form factor, high throughput, low cost of ownership, and high reliability. It is equipped with SEMI(R) compliant automation, ISO Class 2 certified clean hardware, and meets all ergonomic and safety certifications needed for high volume manufacturing.

Robert Stoner, ZYGO's Vice President, Metrology, stated, "Industry experts predict a 10% CAGR in silicon wafer demand through 2009, with the greatest growth coming from the 300mm segment, which is expected to grow to more than 30% of total silicon shipments in 2007. ZYGO's Z3D family of tools is designed to help facilitate this growth by enabling wafer makers, and their customers, to cost effectively characterize silicon substrates with state-of-the-art precision and range. This first order demonstrates our versatile measurement technology and our value proposition appeal to customers in multiple segments of the semiconductor market."

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 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 fluctuations in our 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 our Form 10-K, for the fiscal year ended June 30, 2006.

For Further Information Call:
Walter A. Shephard
Vice President Finance, CFO, and Treasurer
Voice:  860-704-3955
Contact via

SOURCE: Zygo Corporation

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