MIDDLEFIELD, CT -- (MARKET WIRE) -- 10/04/06 -- Zygo Corporation (NASDAQ: ZIGO) announced today that its Display Solutions Division received an order in excess of $1.4 million for its DropShot(TM) Flat Panel Metrology system. The DropShot(TM) system is specifically designed to operate with the latest OLED and LCD ink jet printing technologies to analyze product quality and provide valuable feedback for real time process control. This latest product from the ZYGO Display Solutions Division joins a family of flat panel products that combine precision 3D metrology with inspection technology. This provides display makers with critical data necessary to adapt ink jet printing technology to next generation LCD and OLED production fabs.

"ZYGO's solutions are now used in both ink jet printer process development, as well as large scale color filter production," said Brian Monti, Vice President and General Manager of ZYGO'S Display Solution Division. "We are extremely pleased to be at the forefront in helping to reduce display product manufacturing costs through the adoption of new production methods like ink jet printing in fabs ranging in size from G5 through G8."

The DropShot(TM) system's tool is aimed at optimizing ink jet and other novel display manufacturing methods that require concurrent 2D and 3D high-speed metrology. This system utilizes ZYGO's largest staging platforms and provides throughput 30% greater than the Company's previous designs. DropShot(TM) will be supplied with ZYGO's latest generation of Intellisensor(TM) technology, which includes advances in optical techniques that allow for enhanced film thickness and volume measurements.

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 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.

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