Nanometrics Joins New Russell Microcap Index

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment for the semiconductor industry, today announced it has joined the new Russell Microcap™ Index when Russell Investment Group reconstituted its family of U.S. indexes on June 24, 2005. Russell recently posted a membership list for the Russell Microcap at www.russell.com/US/Indexes.

Nanometrics acknowledges its addition to the Russell Microcap Index as an indicator that the company is performing well in the eyes of the market’s most influential investors. “While we continue to make positive strides internally to meet our long-term business objectives, recognition by the investment community is great affirmation that our past efforts did not go unnoticed,” stated Nanometrics CEO John Heaton.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. More than $2.5 trillion in assets currently are benchmarked to them. Investment managers who oversee these funds purchase shares of member stocks according to that company’s weighting in the particular index.

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 IC manufacturers to improve yields, increase productivity and lower manufacturing costs. The Company maintains its headquarters in Milpitas, CA, with sales and service offices worldwide. Nanometrics is traded on NASDAQ under the symbol NANO. The Company’s website is http://www.nanometrics.com.

Contact:
Peter Gise
Nanometrics
408.435.9600