Nanometrics Agrees to Sell Flat Panel Display Business Unit

Nanometrics Inc., (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment for the semiconductor industry, today announced the Company has entered into an agreement for the acquisition of its Flat Panel Display (FPD) business unit by Toho Technology Corp. of Nagoya, Japan. Under the conditions of the sale, Nanometrics’ metrology technology will be licensed to Toho exclusively for use in the FPD market. The transaction is expected to close by the end of the year.

Commenting on the transaction, John Heaton, Nanometrics president and chief executive officer, said, “We are very pleased to be working with Toho Technology. This sale is another milestone in our corporate strategy to focus our business and technology efforts on growing market segments within our core industry, semiconductors."

Hideyuki Tomita, president of Toho Technology also commented; “We are grateful for this opportunity to work together with Nanometrics and to further develop our FPD business. Since 1819, our business has been built on relationships with customers and business partners. The Nanometrics technology complements our existing portfolio and now allows us to offer our customers in the flat panel field increased value and performance.”

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.

About Toho Technology
Toho Technology Corporation is a leading supplier of Process Control and Inspection solutions for the Flat Panel industry. The company's portfolio of products and expertise is designed to help researchers and manufacturers throughout the entire fabrication process-from R&D to final analysis. The Company’s corporate office is located at 3-10-22 Sakae, Naka-ku, Nagoya, Japan 460-0008 with sales, applications and services offices in the United States, Europe and Asia. Toho Technology’s web site is: http://www.tohotechnology.com

Contact:
Doug McCutcheon
Nanometrics
408.435.9600