Milpitas, California. February 19, 2004.

Nanometrics Announces Financial Results for Q4 and Year End 2003

Nanometrics Incorporated NASDAQ: NANO) today reported financial results for the fourth quarter and year ended December 31, 2003.

Total revenues for the fourth quarter of 2003 were $12.4 million, an increase of 22% compared to the third quarter of 2003 and an increase of 27% compared to the fourth quarter of 2002. The increase in fourth quarter sales in 2003 resulted from stronger demand for semiconductor process control metrology equipment primarily in the Pacific Rim countries. The net loss in the fourth quarter of 2003 was $804,000 or $0.07 per diluted share compared to a net loss of $3.2 million or $0.27 per diluted share for the same period last year.

For the year ended December 31, 2003, Nanometrics’ revenues increased 20% to $41.6 million compared to revenues of $34.7 million in 2002. The net loss for the year ended December 31, 2003 was $17.5 million or a loss of $1.45 per diluted share, compared to a net loss of $8.3 million or a loss of $0.70 per diluted share in 2002. The net loss in 2003 includes a $6.0 million charge to record a valuation allowance against deferred income tax assets, as previously reported in the first quarter of 2003. The Company’s financial position continues to be strong with cash and equivalents and short-term investments of $29.9 million and working capital of $59.2 million

Q4 & FY 2003 consolidated balance sheet and income statement [pdf]

About Nanometrics:
Nanometrics Incorporated is a leading supplier of integrated and automated metrology equipment used in advanced IC, flat panel display and magnetic head manufacturing. The Company's corporate office is located at 1550 Buckeye Drive, Milpitas, CA 95035, with sales and service offices worldwide. Nanometrics is traded on the NASDAQ National Market under the symbol NANO. Nanometrics' website is http://www.nanometrics.com.

Contact:
Paul Nolan
Nanometrics
408.435.9600