Axsys Technologies Opens Facility to Produce Mirror Segments for James Webb Space Telescope.

ROCKY HILL, Conn. -- Axsys Technologies, Inc. (NASDAQ: AXYS) hosted a ribbon cutting for a new, state-of-the-art manufacturing facility that will produce the unpolished mirror segments for the James Webb Space Telescope (JWST), the nation's next-generation space telescope and successor to the Hubble.

The new $1.2 million, 20,000 square foot facility, located in Cullman, Alabama, houses advanced computer-aided manufacturing and metrology equipment. Using these machines, Axsys will shape optical components for the Observatory's telescope mirror to tolerances as close as four thousandths of an inch.

"I join the Cullman community in congratulating Axsys Technologies on their expansion here in North Alabama," said Congressman Robert Aderholt. "This company has already shown excellent judgment in selecting a location that can provide the support and human resources to ensure that they can continue fulfilling such a prominent role in driving the development of the nation's next-generation space telescope."

Neal Wade, Director of the Alabama Development Office, represented Alabama Governor Bob Riley at the ribbon cutting. In addition, staff members representing Sen. Richard Shelby and Sen. Jeff Sessions were also in attendance.

"The entire Axsys team is excited to be opening our new facility and commencing work on the JWST mirrors," said Stephen W. Bershad, Chairman and Chief Executive Officer of Axsys Technologies, Inc. "JWST is an epic project, and we are proud that our company's capabilities are fundamental in the ongoing challenge to develop increasingly advanced optical solutions."

JWST will peer into the infrared at great distances to search for answers to astronomers' fundamental questions about the birth and evolution of galaxies, the size and shape of the universe, and the mysterious life cycle of matter. A component of NASA's Origins Program, JWST will reside in an orbit 940,000 miles from Earth at the L2 Lagrange point after its launch in 2011.

The Observatory features a 6.5-meter (20 feet) aperture primary mirror, comprised of 18 hexagonal shaped segments. One of the lightest of all metals, Beryllium was selected as the mirror technology for its demonstrated track record operating at cryogenic temperatures (around -370 degrees Fahrenheit) on space-based telescopes.

As part of the beryllium mirror manufacturing team, Axsys will produce beryllium mirror substrates and support structures for a primary mirror engineering development unit, 18 primary mirror segments, and the substrates and support structures for the secondary and tertiary mirrors. Mirror fabrication in this facility is expected to begin November 2004 and be completed by January 2007.

The mirror manufacturing team is led by Ball Aerospace & Technologies Corp. and includes Brush Wellman, with responsibility for providing beryllium blanks, and Tinsley Laboratories, who has the responsibility for polishing the mirrors. Northrop Grumman Corporation is the prime contractor for JWST, leading the design and development under contract to NASA's Goddard Space Flight Center.

Axsys Technologies, Inc. (NASDAQ: AXYS), a fully integrated supplier of precision optical assemblies and components used in a variety of high performance commercial, aerospace and defense applications. For more information contact Axsys Technologies, Inc. at www.axsys.com

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expect", "anticipate", "plan", "may", "will", "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission, including without limitation: the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers or reversal or slowdown of the modest economic recovery presently being experienced in the United States.