Ruling by U.S. Patent and Trademark Office to Strengthen Nanometrics' Integrated Metrology Patent Portfolio

Reexamination Certificate to be Issued Confirming Polar Coordinate Stage Technology Patent Without Amendment

Nanometrics, Inc. (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment for the semiconductor industry, today announced that the U.S. Patent and Trademark Office has issued a ruling that will strengthen one of Nanometrics’ key patents for integrated metrology products. In response to a patent challenge made by one of Nanometrics’ competitors, the Patent and Trademark Office reexamined a Nanometrics patent relating to polar coordinate stage technology. As a result of the reexamination proceeding, the Patent and Trademark Office issued a Notice of Intent to Issue an Ex Parte Reexamination Certificate to Nanometrics, confirming all claims without amendment. The issuance of the Reexamination Certificate is expected to solidify Nanometrics’ ownership of this technology and effectively bar competitors from utilizing this important technology.

The reexamined patent – an enabling technology for integrated metrology applications – helps to ensure Nanometrics’ current and future position as a leading advanced process control (APC) provider. “This ruling by the U.S. Patent and Trademark Office confirms Nanometrics’ proprietary right to a technology that is a vital component of our integrated metrology products and the future of advanced process control,” said John Heaton, president and CEO of Nanometrics. “The company will continue to vigorously guard our intellectual property.”

The patent, originally issued to Nanometrics in November 2001, U.S. Patent No. 6,320,609, is entitled, “System Using a Polar Coordinate State and Continuous Image Rotation to Compensate For Stage Rotation.” The patent pertains to an apparatus and method for controlling a polar coordinate stage that moves the image of an object to compensate for the rotation of the stage. The technology uses polar coordinate motion, enabling smaller, more efficient integrated metrology modules. The technology also provides the benefits of a continuously corrected image without the size and speed drawbacks of a standard x-y stage in a compact design that has virtually no impact on the process tool’s footprint for easy and efficient integration.

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’ website is: http://www.nanometrics.com.

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 anticipated growth, intellectual property portfolio and manufacturing capabilities. Actual results may differ materially from those projected due to a number of risks and uncertainties, including among others, risks related to reduction in demand for our products, threats to our intellectual property rights, 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 April 1, 2004, and all subsequent filings.

Contact:
Peter Gise
Nanometrics
408.435.9600