Milpitas, California. August 27, 2007.

Nanometrics Completes Real Estate Asset Sales

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced metrology equipment to the semiconductor industry, today announced that the company has completed the sale of certain real estate holdings in Narita, Japan and Milpitas, California.

Included in the real estate sales were a facility in Japan, which housed the flat panel display business that Nanometrics sold in 2005, and a residential condominium near the company’s headquarters in Milpitas. Sales of these real estate assets are expected to reduce debt by $1.2 million, contribute nearly $2 million in cash and result in an income statement gain of approximately $1.2 million during the third quarter of 2007.

“We are pleased to announce the successful sale of our facility in Japan – which had sat unutilized for nearly two years – as well as the condominium in Milpitas,” commented Tim Stultz, president and chief executive officer of Nanometrics. “This announcement is another benchmark to demonstrate our company’s ability to monetize fixed assets and dispose of businesses no longer critical to our mission, such as the machining and plating shop closure announced earlier this month. These steps improve our profitability and cash flow, similar to the successful second-quarter divestitures of the Yosemite CD-SEM technology and DiVA product line.”

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
530-274-0551 tel; 530-274-0531 fax
claire@headgatepartners.com

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