Milpitas, California. March 20, 2007.

Nanometrics Announces Global Manufacturing Center for Overlay Metrology

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced integrated and standalone metrology equipment to the semiconductor industry, today announced it has established Nanometrics’ South Korea facility as its global manufacturing center for overlay metrology.

Overlay metrology, or the measurement of the registration of sequential layers during the semiconductor manufacturing process, is a key enabler for next-generation lithography and represents one of four core market segments for Nanometrics, including optical critical dimension (CD) scatterometry, film thickness measurement and integrated metrology.

As part of Nanometrics’ growth strategy, the company is consolidating worldwide overlay manufacturing into one location in Asia. Nanometrics is transferring all manufacturing and product engineering out of its Concord, Mass. facility, attained when Nanometrics acquired Soluris in March 2006. As a result, the IVS product line, including the recently-introduced IVS 185™, will join the Orion and Caliper systems already being manufactured in South Korea. Scheduled for completion in the third quarter of 2007, the transfer will result in cost savings of more than $1 million annually.

After the consolidation is complete, Nanometrics will have achieved:

- An Asian manufacturing center exclusively dedicated to overlay metrology;
- One hundred percent of overlay product manufacturing in a single facility;
- Overlay product engineering and development capability in South Korea; and
- Advanced overlay development by Nanometrics’ engineering team in York, England.

Bert Plambeck, director of overlay product marketing, said, “By consolidating our overlay manufacturing operations into one central facility in Asia, we are able to focus dedicated resources and improve manufacturing systems, providing our customers with enhanced product consistency, reliability and overall quality. We see this convergence as a key factor in our ability to continue to provide best-in-class overlay metrology systems to our customers worldwide.”

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