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Milpitas, California. September 28, 2004.

Nanometrics and Tokyo Electron Limited Agree to Coordinate Efforts
for Optical CD Metrology

Nanometrics, Inc., (Nasdaq: NANO), a Milpitas-based supplier of advanced metrology systems, today announced that Nanometrics and Tokyo Electron Limited (TEL)’s TEL/Timbre group will cooperate to deliver a fab-wide, production proven combination of hardware and software for complete optical critical dimension process control scatterometry solutions across all aspects of the semiconductor manufacturing process. The combined hardware and software platform offers complete flexibility and the fastest time-to-results to customers employing a standalone strategy, as well as those developing a fully integrated metrology strategy for advanced process control (APC). Together, the applications resources of Nanometrics and TEL/Timbre offer the most extensive knowledge of all practical uses for optical scatterometry across a wide range of semiconductor processes and applications, and unparalleled expertise in the use of this technology for lithography and etch applications.

"Nanometrics production proven hardware technology, together with TEL/Timbre (ODP) software, offers the ‘best-of-breed’ process control metrology solution,” said John Heaton, president and CEO of Nanometrics. “This combination excels at measuring, characterizing and controlling the line-width, sidewall angle, height and profile of critical features on semiconductor devices and structures.”

Optical digital profiling (ODP) translates diffracted, broadband light into accurate profiles of semiconductor device structures and their underlying films. Unlike CD-SEMs and X-SEMs, which require a vacuum wafer environment and are generally destructive, optical scatterometry is fast, non-invasive and non-destructive, and can be easily integrated into process tools.

About TEL
TEL is a leading supplier of innovative semiconductor and FPD production equipment worldwide. Product lines include coater/developers, thermal processing system, dry etchers, CVD systems, wet cleaning systems, and test systems. In Japan, TEL distributes other leading edge semiconductor equipment tools, such as metrology tools or process control systems. In addition, TEL distributes high quality computer systems, semiconductor devices and electronic components of other leading suppliers, as well as computer network related products from around the world. To support this diverse product base, TEL has strategically located research & development, manufacturing, sales, and service locations all over the world. TEL is a publicly held company listed on the Tokyo Stock Exchange. www.tel.com.

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, CA, and sales and service offices worldwide. Nanometrics is traded on NASDAQ under the symbol NANO. Nanometrics’ website is: http://www.nanometrics.com.

Contact:
Peter Gise
Nanometrics
408.435.9600

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