Milpitas, California. August 16, 2007.

Nanometrics Reduces Fixed Costs by Closing Non-Critical Manufacturing Facilities

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced metrology equipment to the semiconductor industry, today announced that the company will close its Milpitas machine shop and plating facility as part of the company’s mission to reverse its vertical integration and lower its breakeven point.

In conjunction with this closure, Nanometrics will record a restructuring charge in the third quarter of 2007 in an amount of up to $4 million associated with the write-off of these assets. The company is pursuing a lease of these facilities and sale of related assets.

“A key element of our restructuring plan is to unwind our vertical integration strategy, converting fixed costs to variable costs,” commented Bruce C. Rhine, chief executive officer of Nanometrics. “Integrated machining and plating do not add value to our business, and disposing of this facility will improve Nanometrics’ cost structure and lower the breakeven point for the company.”

About Nanometrics
Nanometrics is a leader in the design, manufacture and marketing of high-performance process control metrology systems used in semiconductor manufacturing.  Nanometrics standalone and integrated 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 Nanometrics’ intent to close certain of its facilities, the financial and accounting impact of such closures and related matters. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause Nanometrics’ actual results to differ materially from those expressed or implied by the forward-looking statements. Factors that could affect these forward-looking statements include the closures not taking place as anticipated and the potential that they will not have the expected accounting or financial impact. For additional information and considerations regarding the risks faced by Nanometrics, see its annual report on Form 10-K for the year ended December 30, 2006 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. Nanometrics disclaims any obligation to update information contained in any forward-looking statement.

Contact
Investor Relations Contact:
Claire McAdams
Headgate Partners LLC
530-265-9899 tel; 530-265-9699 fax
claire@headgatepartners.com

Company Contact:
Quentin Wright
408-545-6000 tel; 408-232-5910 fax
qwright@nanometrics.com