Milpitas, California. December 7, 2006.

Nanometrics Reports Favorable Markman Ruling in Patent Dispute

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment to the semiconductor industry, today announced a favorable “Markman” decision by Judge Maxine Chesney of the United States Federal District Court for the Northern District of California in the patent infringement case initiated by Nova Measuring Instruments Ltd.

Nova Measuring sued Nanometrics for infringement of U.S. Patent No. 6,752,689, which Nova Measuring claims covers certain Nanometrics integrated metrology products. Nanometrics has asserted that this patent is not infringed and is invalid.

Markman hearings, also known as claim construction hearings, are held to determine the scope and meaning of the patent claims prior to the commencement of trial. On December 1, 2006, Judge Chesney issued a Markman order in the case, finding, among other things, that the phrase “wafer transfer means” – which is contained in all patent claims asserted by Nova Measuring – restricts Nova Measuring’s patent claims to apply only to products used with a “water track” or its equivalents.

“Nanometrics’ integrated metrology products do not incorporate anything like a water track,” commented Ron C. Finley, of the law firm Beck, Ross, Bismonte & Finley, LLP, lead patent counsel for Nanometrics. “This claim construction ruling clears the way for Nanometrics to dispose of this case and vindicate its position that Nova’s allegations have no merit.”

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.

Forward Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding the expected outcome of Nanometrics’ current patent litigation, which could affect the Company’s expected operating performance in future periods. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause Nanometrics’ actual results or achievements to differ materially from those expressed or implied by the forward-looking statements, including the possibility for subsequent adverse rulings, including but not limited to the possibility of reversal of the District Court’s Markman Order. Forward-looking statements are only predictions and actual events or results may differ materially. For additional information and considerations regarding the risks faced by Nanometrics, see its annual report on Form 10-K for the year ended December 31, 2005 as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time including its quarterly reports on Form 10-Q. Neither Nanometrics nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements. Nanometrics disclaims any obligation to update information contained in any forward-looking statement.

Contact:
Doug McCutcheon
Nanometrics
408.435.9600