Milpitas, California. December 20, 2005.

Nanometrics Completes Sale of Flat Panel Display Business Unit to Toho Technology Corp.

Nanometrics, Inc. (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment for the semiconductor industry, today announced the completion of the sale of its Flat Panel Display (FPD) business unit to Toho Technology Corp. of Nagoya, Japan. The initial acquisition agreement was announced in September.

Under the terms of the agreement, Toho Technology has acquired assets and inventory as well as assumed management of the former Nanometrics employees involved in the business. Toho commenced operation of the business on October 3rd, 2005.

“This is a win-win situation for both companies. Toho Technology now can offer its customers a broader range of FPD services and products while we continue to concentrate our business and technology efforts on expanding opportunities within the global semiconductor industry,” said John Heaton, Nanometrics’ president and chief executive officer.

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 and integrated circuits. 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.

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 website is: http://www.tohotechnology.com.

Contact:
Doug McCutcheon
Nanometrics
408.435.9600