Zygo Board withdraws recommendation for ESI merger

Zygo Corporation (Middlefield, CT), supplier of optical metrology instruments, precision optics, and optoelectronic design and manufacturing services, notified Electro Scientific Industries (ESI; Portland, OR) of Zygo's Board of Directors' withdrawal of its recommendation in favor of the previously announced merger agreement with ESI.

A reevaluation of the proposed merger with ESI by Zygo's Board was necessitated by changes in conditions since the merger agreement was executed on October 15, 2008, and the Zygo Board's view of the impact of these changes on the current and expected performance and operations of Zygo and ESI.

The merger agreement will remain in effect unless terminated in accordance with its terms. Pursuant to the terms of the merger agreement, ESI has the right to terminate the merger agreement as a result of Zygo's Board's withdrawal of its recommendation.

For more information, go to www.zygo.com.