[ZYGO LETTERHEAD]

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Gary K. Willis
President and Chief Executive Officer
                                                         For Immediate Release

                          ZYGO CORPORATION ANNOUNCES
                 ACQUISITION OF TECHNICAL INSTRUMENT COMPANY

MIDDLEFIELD, CONNECTICUT (AUGUST 20, 1996).......Zygo Corporation (NASDAQ:ZIGO)
today announced that it has completed the acquisition of the proprietary
products division of Technical Instrument Company ("TIC"). In the transaction,
Zygo paid approximately $11.7 million in cash and issued unregistered shares of
its common stock valued at $3 million in exchange for all the outstanding
capital stock of TIC.

      TIC, located in Sunnyvale, California, is engaged in the business of
designing, developing, assembling, and marketing precision microscope products
and systems used to improve the production efficiency and manufacturing yields
within the semiconductor, data storage, and other high technology industries.

      Gary K. Willis, president and chief executive officer of Zygo, noted,
"TIC's confocal microscopy technology complements Zygo's interferometric
measurement capabilities and broadens both of our abilities to provide enhanced
measurement and yield improvement solutions to our customers." He added, "With
TIC's strong relationships with manufacturing plants in the semiconductor and
data storage industries on the West Coast and in the Pacific Rim, the
acquisition will strengthen Zygo's presence and capabilities to serve customers
in those areas."



      Frank E. Lundy, president of TIC, added, "The merger with Zygo allows us
to more effectively pursue the rapidly growing opportunities for us in our
served markets, while further accelerating our growth opportunities as we
provide enhanced solutions to those markets with our combined technologies."

      For the year ended December 31, 1995, TIC's proprietary products business
had approximately $8.4 million in net sales, and a net loss of $131,000. TIC's
unaudited results for the six months ended June 30, 1996 included net sales of
approximately $5.4 million, and net earnings of $939,000. Zygo's results for the
nine months ended March 31, 1996 included net sales of $38.3 million, an
increase of 77% from the comparable nine-month period of a year earlier, and net
earnings of $1.04 per share, a 167% increase from the $.39 per share reported in
the comparable nine-month fiscal 1995 period. Zygo closed its fiscal year on
June 30, 1996 and has not yet reported its audited financial results for the
full year.

      The Company also announced that it is progressing with its previously
announced acquisition of NexStar Automation, Inc. To this end, definitive merger
documentation has been signed, preliminary approval of the Supreme Court of
British Columbia has been received, and the Management Information Circular and
proxies have been mailed to NexStar's shareholders. The NexStar shareholder's
meeting is scheduled for September 11, 1996, and it is anticipated that the
acquisition will be consummated shortly thereafter. NexStar is engaged in the
business of designing, developing, and manufacturing automation parts handling
equipment to improve production efficiency and manufacturing yields within the
data storage, semiconductor, and medical disposables markets.

      Zygo Corporation designs, develops, manufactures, and markets precision
measurement and automation equipment and components used to enhance production
yields in high technology industries. The firm is based in Middlefield,
Connecticut, and also has operations in Sunnyvale, California.


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