 July, 2008 Investor Presentation Dr. Sergio Edelstein President and CEO Robert L. Bowen VP and CFO Exhibit 99.1 |
 1 Important Information The tender offer for outstanding common stock of Excel Technology, Inc. (Excel) referred to in this presentation has not yet been commenced. Neither this presentation, nor the description of the tender offer contained herein, is an offer to purchase nor a solicitation of an offer to sell securities of Excel. At the time the tender offer is commenced by Eagle Acquisition Corporation (Purchaser), an indirect wholly owned subsidiary of GSI Group Inc. (GSI), GSI and Purchaser will file with the Securities and Exchange Commission (SEC) a Tender Offer Statement on Schedule TO containing an offer to purchase, forms of letters of transmittal and other documents relating to the tender offer, and Excel will file with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. These documents will be sent free of charge to the stockholders of Excel. These documents will contain important information about the tender offer, and stockholders of Excel are urged to read them carefully when they become available. Stockholders of Excel will be able to obtain a free copy of these documents (when they become available) and other documents filed by Excel or GSI with the SEC at the website maintained by the SEC at www.sec.gov. In addition, stockholders will be able to obtain a free copy of these documents (when they become available) from GSI by contacting GSI at 125 Middlesex Turnpike, Bedford, Massachusetts 01730, attention: Investor Relations, or from Excel by contacting Excel at 41 Research Way, East Setauket, New York 11733, attention: Investor Relations. |
 2 Safe Harbor Certain matters being discussed today that are not statements of historical fact constitute forward-looking statements relating to current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, and statements regarding the strategy and plans of the Company. Such forward looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of GSI Group's future performance. Listeners are cautioned that all forward-looking statements are subject to a number of risks and uncertainties that could cause the Company's actual results in the future to differ materially from these forward-looking statements. These risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission, including its 10-K, copies of which may be accessed through the SEC's website at http://www.sec.gov. Current data and other statistical information used throughout this presentation are based on independent industry publications, government publications, and reports by market research firms or other published independent sources. Some data are also based on our good faith estimates, which are derived from our review of internal surveys, as well the independent sources listed above. We believe that these sources are reliable. The 2007 pro forma information for the Excel Technology acquisition is preliminary and has not been audited. |
 SECTION 1 Transaction Overview |
 4 A Compelling Combination of Laser and Precision Technology Leaders 2007 Revenue: $160.0 million 2007 Adj. EBITDA: $23.9 million 2007 Revenue: $317.8 million 2007 Adj. EBITDA $45.5 million Combined company better positioned to offer expanded portfolio of products Leading designer and manufacturer of: – precision motion component products – lasers – laser systems Leading worldwide supplier of : – precision motion component products – lasers – laser-based manufacturing systems |
 5 288 282 189 160 318 445 478 503 598 0 100 200 300 400 500 600 700 Reshaping the Industry Landscape A combined GSI and Excel emerges as a top-tier laser and precision technology company |
 6 169 199 197 41% 43% 42% 0 40 80 120 160 200 240 2005 2006 2007 40% 41% 42% 43% 44% 45% CAGR = 8 Building on Solid Historical Performance Pro Forma Revenue Pro Forma Gross Profit Pro Forma Adj. EBITDA Source: GSI and Excel filings Note: Assumes no intercompany sales 399 468 478 0 100 200 300 400 500 600 2005 2006 2007 CAGR = 9% 48 72 69 15% 15% 12% 0 20 40 60 80 100 2005 2006 2007 10% 13% 16% 19% 22% 25% CAGR = 20% % |
 7 Unique Value Creation Expanded offerings in largest market currently served: lasers Expanded offerings in attractive businesses: lasers, scanners Strong operational business processes Presence in India Complementary laser technology, including industrial YAG and fiber lasers Complementary motion technology Systems know-how Presence and operation in China Long-term growth potential of laser-based solutions combined with need for industry consolidation Broad combined product offerings, with expanded sales channels in Asia, including China and India Uniquely positioned to take on leading players with a complete set of laser technologies: CO 2 , pulsed, ultrafast, solid state and fiber GSI Brings to Excel Excel Brings to GSI |
 8 Key Transaction Terms Purchase Price Timing Closing Conditions Other Financing $32 cash per Excel share $309.9 million enterprise value $360.5 million equity value, fully diluted Anticipated to close in Q3 2008 Regulatory / government approvals MAC clause Available cash balances Financing arranged by UBS Structured as a tender offer |
 9 Key Financing Terms Principle amount $210 million Rank/security Senior unsecured notes from GSI (US) sub and warrants exercisable into common stock from GSI parent Maturity 5 years Interest rate 11% per annum, payable semi annually in arrears Optional redemption After 1 year, up to 50% redeemable. Fully redeemable after 3 years Warrants Warrants to purchase GSI stock at a strike price of $0.01 |
 10 Financial Rationale Game changing transaction unlocks value and establishes GSI as an industry leader Creates conditions for valuation multiple expansion – Transforms capital markets’ view of GSI from a niche semiconductor capital equipment supplier to a precision motion and laser leader – GSI achieves size and efficiency in a consolidating laser / precision motion industry – Reduces volatility in business performance due to cyclical semiconductor systems business Conservative estimates show upwards of $6.5 million in 2009 and $8.7 million in 2010 pre-tax synergies, with twice the upside potential – Consolidation of corporate headquarters – Integration and consolidation of scanning businesses – Rationalization of Germany and Japan field offices Leverage combined distribution network to capture cross-selling opportunities Moderately accretive to 2009 cash EPS on a post-synergy basis |
 11 Growth and Operational Strategy We believe substantial synergies can be realized through the following steps Capture substantial growth opportunities Increase integration of core technologies Leverage power of combined sales channels Consolidate, integrate and standardize on a common operational infrastructure Rationalize R&D and SG&A operations across GSI and Excel Combined company competes in a roughly $1.3bn market Adjacent markets are even larger - approximately $8bn, and growing at double digit rates GSI has taken aggressive moves to relocate manufacturing and sales resources to low-cost regions in closer proximity to customers Excel brings substantial Asian presence Increased integration of scanner, encoder and laser technology to offer customers enhanced system and subsystem value Broaden the combined company’s presence in key emerging high-growth laser segments Cross-sales of products into existing channels, providing customers with expanded competitive choices Expand Asian presence Continued focus on Operational excellence |
 SECTION 2 Overview of Excel |
 13 Strong new product development effort, with nearly 10% of sales devoted to R&D Strong presence in North America and gaining overseas, especially in Asia Valuable IP and a critical set of core competencies Growth achieved organically and through selective acquisitions of complementary laser technologies Founded in 1985 as designer and manufacturer of laser systems electro-optical products Excel Investment Highlights A leading broad-based laser technology company with unique core competencies |
 14 Galvanometer- based scanners High energy solid state pulsed laser systems Laser micro- machining systems Marking and Engraving Systems Sealed CO2 lasers High-powered solid state and ultrafast lasers Light and color measurement systems Optical products and laser power systems ` Complete systems employing laser technology and customized software for welding, soldering, materials analysis, and marking and engraving Excel Business Segments Source: Excel Technology 2007 Revenue Breakdown A complete line of lasers and laser subsystems for industrial material processing and research and development Optical technology products that measure light and control light beams Components and Subsystems Integrated Systems and Workstations |
 15 Optical Products and Laser Power Systems Light and Color Measurement Systems High-Energy Solid-State Pulsed Laser Systems Laser Micro-Machining Systems High-Powered Solid- State Lasers and Ultrafast Lasers Measurement of hard drive flight characteristics, galvanometer scan head systems Excel Product Portfolio Marking, engraving, thin-film welding, textile processing, and semiconductor wafer processing Material processing, marking and engraving, ophthalmology, DNA analysis, imaging and printing Marking, deep engraving, micromachining, with customized control software Scientific and research applications, including velocimetry, spectroscopy, reaction kinetics Color testing for TV displays, calibration of digital cinematic products, characterization of LEDs, lamps and lighting Marking, coding, and engraving systems Components and Subsystems Diamond drilling and processing, welding and soldering, photomask repair, chip failure analysis Integrated Systems and Workstations Sealed CO2 Lasers Galvanometer-Based Scanners Marking and Engraving Systems |
 SECTION 3 Overview of GSI Group |
 17 Investment Highlights Strong Balance Sheet and Healthy Operating Cash Flows Experienced Management Team with Track Record of Success Serving Multiple Markets with Large Adjacent Growth Opportunities Innovator and Leader in Multiple Core Markets Long-Term, Repeat Customer Relationships Unique Product Set of Scanners, Encoders and Laser Technology |
 18 Company History 1968 1989 1994 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 2003 2006 2007 General Scanning founded Lumonics merger GSI IPO DRC, Spectron, Westwind (PCB drill) acquisitions MicroE (encoder) acquisition GSI purchases systems business from Teradyne Dr. Sergio Edelstein assumes CEO position Life Sciences business divested Suzhou, China plant opened |
 19 Optics Printers Spindles Trim Mark Repair Scanners Lasers Encoders GSI Business Segments Laser material-processing and high speed beam placement for semiconductor processing GSI has 30% share of this $400 million industry segment Industry has few competitors Product differentiation achieved through superior speed and accuracy Precision motion products used in consumer electronics, medical, government, aerospace, and industrial manufacturing GSI has 26% share of this $700 million industry segment Highly diversified customer base Product differentiation through technological superiority Increasing automation and miniaturization in manufacturing continues to drive demand Source: Company management 2007 Revenue Breakdown Precision Technology Semiconductor Systems |
 20 GSI Market Segments Lasers is the Largest and Fastest Growing Market Served by GSI Served Market Available Market Total Market Annual Growth Market Position Lasers $300M $1B $7B 10% #6 Encoders $150M $300M $1B 5% #3 Scanners $110M $150M $150M 8% #3 Spindles $100M $130M $130M 6% #2 Laser Systems (Semi) $400M $400M #2 Laser Systems (Non-Semi) $600M $600M None Optics Printers Niche Niche $1B 7% |
 21 Product Portfolio: Precision Technology Components and subsystems for the OEM market Market sizes are GSI estimates Lasers and electromechanical motors that move mirrors Market size: $110 million Market position: #3 Laser-based rulers measuring movement to sub-microns Market size: $150 million Market position: #3 Pulsed, YAG, CO2, diode, and fiber lasers Market size: $300 million Market position: niche High speed drills for printed circuit board holes Market size: $100 million Market position: #1 Thermal printers for patient monitoring and defibrillators Market size: $30 million Market position: #1 Super-polished, super-flat mirrors Market size: $30 million Market position: #1 Scanners Encoders Lasers Spindles Medical Printers Optics |
 22 Precision Technology Precision motion used in the manufacture of consumer electronics, medical products Established customer base Highly diversified Product differentiation achieved through — Patented technology — Processing accuracy Trends expected to benefit the Company — Continued high consumer demand for electronics — Continued drive to miniaturize — Increased use of lasers in multiple end such as industrial, automation, textile processing and solar cell production $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2002 2003 2004 2005 2006 2007 -- 10% 20% 30% 40% 50% 60% ($ in millions) 2002 2003 2004 2005 2006 2007 External Revenue Total $93.2 $102.8 $183.4 $172.6 $186.0 $183.4 Growth Rate 10% 78% (6%) 8% (1%) Gross Margin 35% 37% 35% 38% 40% 38% Segment Trends Commentary |
 23 Semiconductor Systems: Product Portfolio Wafer repair to raise production yield Market size: $150 - $250 million Market position: #2 Production marking of silicon wafers Market size: $45 million Market position: #1 Adjustment and tuning of mixed signal chips Market size: $50 million Market position #1 Laser system solutions for semiconductor manufacturers Market sizes are GSI estimates Wafer Repair Wafer Mark Wafer Trim |
 24 Semiconductor Systems Experts in laser material-processing and high speed precision beam placement High levels of product penetration Product differentiation achieved through — Processing speed — Processing accuracy Trends expected to benefit the Company — Continued high consumer demand for electronics — Increasing demand for memory — Continued drive to miniaturize — Continued conversion to 300mm wafers $0 $20 $40 $60 $80 $100 $120 $140 $160 2002 2003 2004 2005 2006 2007 -- 10% 20% 30% 40% 50% 60% ($ in millions) 2002 2003 2004 2005 2006 2007 Revenue $65.9 $82.7 $146.6 $88.2 $127.6 $134.4 Growth Rate 25% 77% (40%) 45% 5% Gross Margin 18% 32% 44% 40% 41% 41% Trends by Product Lines Commentary |
 25 Prominent and Diverse Customer Base Broad customer base, with no customer accounting for greater than 6% of 2007 sales Precision Technology customers represent diverse end-markets, ranging from automotive, industrial, electronics, and medical Over 2,500 customers in total Precision Technology Semiconductor Systems |
 SECTION 4 Additional Materials |
 27 2007 Combined Company Highlights + = Proforma Note: Assumes no intercompany sales (in millions) Revenues $317.8 $160.0 $477.8 Gross profit $126.7 $69.8 $196.5 Gross margin 39.9% 43.6% 41.1% Operting income $29.3 $21.3 $50.6 Operating income margin 9.2% 13.3% 10.6% Adj. EBITDA $45.5 $23.9 $69.4 Adj. EBITDA margin 14.3% 14.9% 14.5% Capex $4.8 $1.6 $6.4 Capex as % of revenues 1.5% 1.0% 1.3% |
 28 Pro Forma Performance Note: Assumes no intercompany sales Revenue 2005 2006¹ 2007² Q1 2008 Excel $ 137.7 $ 154.5 $ 160.0 $ 39.3 GSI 260.8 313.6 317.8 71.7 Combined $ 398.5 $ 468.1 $ 477.8 $ 111.0 Gross Profit Excel $ 65.4 $ 68.9 $ 69.8 $ 17.1 GSI 103.7 130.3 126.7 27.3 Combined $ 169.1 $ 199.2 $ 196.5 $ 44.4 % 42% 43% 41% 40% Adj. EBITDA Excel $ 22.4 $ 27.5 $ 23.9 $ 5.4 GSI 25.9 44.4 45.5 5.3 Combined $ 48.3 $ 71.9 $ 69.4 $ 10.7 % 12% 15% 15% 10% (1) Excel results exclude merger related costs (2) Excel results include stock-based compensation of $2.8 million |