Milpitas, California. October 11, 2006.

Nanometrics Files New Complaint Against Nova Measuring Instruments for Patent Infringement

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment to the semiconductor industry, today announced it has filed a complaint in the United States District Court for the Northern District of California against Nova Measuring Instruments Ltd. for patent infringement. The patents at issue relate to Nanometrics’ optical critical dimension technology, commonly referred to as scatterometry.

“Nanometrics continues to expand its intellectual property portfolio, both internally and through acquisition,” said John Heaton, President and CEO of Nanometrics. “When we merged with Accent Optical, we acquired a number of patents and other fundamental intellectual property in the field of scatterometry, including the patents that are the subject of this new complaint. As a result, we are now in a stronger position to protect our proprietary technology from infringement. We have a responsibility to our shareholders to continue enforcing all 89 of our patents through the most effective and appropriate methods.”

The complaint filed today relates to U.S. Patent Numbers 5,867,276, entitled “Method for Broad Wavelength Scatterometry,” and 7,115,858 B1, entitled “Apparatus and Method for the Measurement of Diffracting Structures.”

This filing follows the March 30, 2006 announcement of the complaint filed against Nova Measuring Instruments Ltd. in the United States District Court for the Northern District of California for infringing Nanometrics’ U.S. Patent Number Re. 34,783. The patent, “Method for Determining Absolute Reflectance of a Material in the Ultraviolet Range,” relates to Nanometrics’ ultraviolet reflectometry and optical critical dimension tools.

About Nanometrics:
Nanometrics is a leader in the design, manufacture and marketing of high-performance process control metrology systems used in semiconductor manufacturing. Nanometrics metrology systems measure various thin film properties, critical dimensions, overlay control and optical, electrical and material properties, including the structural composition of silicon and compound semiconductor devices, during various steps of the manufacturing process. These systems enable semiconductor manufacturers to improve yields, increase productivity and lower their manufacturing costs. The Company maintains its headquarters in Milpitas, California, with sales and service offices worldwide. Nanometrics is traded on NASDAQ Global Market under the symbol NANO. Nanometrics’ website is http://www.nanometrics.com.

Contact:
Peter Gise
Nanometrics
408.435.9600