Nanometrics Provides Update on Financial Outlook for the Second Quarter of 2005

MILPITAS, Calif.--(BUSINESS WIRE)--July 8, 2005--Nanometrics Incorporated (Nasdaq:NANO), a leading supplier of advanced integrated and standalone metrology equipment for the semiconductor industry, today announced that it expects to report lower-than-anticipated revenues for its second quarter ended June 30, 2005. Nanometrics' previous guidance was for revenues to be flat to down 10 percent. The company now expects revenues for the quarter to be down as much as 20 percent.

Nanometrics believes that the decrease in revenue over previous quarters is a result of the general slowdown in the industry which results in longer acceptances and delays in shipments.

“We will continue, as we always have, to focus on the enabling technologies for future chip manufacturing, working toward our long-term business objectives while wading through these market fluctuations”

John Heaton, CEO of Nanometrics, explained that the company's integrated metrology and Advanced Process Control (APC) technologies continue to exhibit strong customer acceptance despite periodic changes in market conditions. "We will continue, as we always have, to focus on the enabling technologies for future chip manufacturing, working toward our long-term business objectives while wading through these market fluctuations," stated Heaton.

About Nanometrics

Nanometrics is a leader in the design, manufacture and marketing of high-performance process control metrology systems used in the manufacture of semiconductors, integrated circuits and flat panel displays. Nanometrics metrology systems measure various thin film properties, critical circuit dimensions and layer-to-layer circuit alignment (overlay) during various steps of the manufacturing process, enabling semiconductor and integrated circuit manufacturers to improve yields, increase productivity and lower their manufacturing costs. The Company maintains its headquarters in Milpitas, California, with sales and service offices worldwide. Nanometrics is traded on NASDAQ under the symbol NANO. Nanometrics' website is: http://www.nanometrics.com.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our future financial performance. Actual results may differ materially from those projected due to a number of risks and uncertainties, including among others, risks related to delayed customer orders, reduction in demand for our products, the strength of our intellectual property rights and technology, trends in our industry, commercial and strategic agreements, new product offerings from our competitors, changes in or an inability to execute our business strategy, unanticipated manufacturing or supply problems and taxation. These and other risks are detailed in our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K, filed on March 23, 2005 as amended on May 2, 2005, and all subsequent filings.

Contacts

Nanometrics, Incorporated
Paul Nolan, 408-435-9600 ext. 122
fax: 408-232-5910
pnolan@nanometrics.com

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