ESI Secures Multiple-System Order for Model 9825 Systems from Japanese Customer; ESI's Semiconductor Link-processing Solution Being Deployed for Production of High-Capacity Elpida DDR DRAM Devices.

PORTLAND, Ore. -- ESI (Nasdaq:ESIO), a leading provider of world-class production laser systems for microengineering applications, today announced its distributor in Japan, Canon Sales Co., Inc., has received a multiple-system purchase order from Tera Probe Inc. for ESI's Model 9825 semiconductor link-processing tools. Tera Probe is a Japan-based joint venture that provides wafer testing services for Elpida Memory, Inc. -- a major dynamic random access memory (DRAM) manufacturer. Tera Probe worked closely with Canon Sales to conduct an extensive competitive evaluation, from which ESI's semiconductor link processing system emerged as the solution of choice. The 9825 systems will be delivered to Tera Probe's Hiroshima operation center primarily over the second half of ESI's fiscal year and will be used in the production of Elpida's most advanced 512Mb and 1Gb double-data-rate (DDR) DRAMs.

"During our evaluation process, we looked closely at the available tools' performance parameters," stated Tera Probe's President, Mr. Masahide Ozawa. "ESI's solutions were chosen not only for their superior productivity, but also for the company's laser-repair roadmap, which offers a solid future growth path. We are pleased to partner with ESI and Canon in adding systems to our production line that will help us advance our memory-technology strategy."

According to Mr. Hiroshi Shibuya, President, Industrial Equipment Co. with Canon Sales, "We are honored to have aided ESI in winning this important business. In committing to a multiple-system purchase, Tera Probe has expressed a high degree of confidence in the world-class technology innovation and service that ESI and Canon provide. We look forward to a continued strong relationship as we assist ESI in providing ongoing sales and service support."

"In a concentrated market with few customers, this win of a top-tier new customer is significant," noted ESI President and CEO Nick Konidaris. "Elpida recently introduced a line of 90nm DDR DRAM devices for high-end consumer applications that deliver a 30-percent reduction in power consumption. Our current product offerings are specifically designed to meet the precision link-processing requirements essential to volume manufacturing of these kinds of high-speed, high-density devices. We look forward to an ongoing close relationship with both Tera Probe and our distributor, Canon, as we work to develop new systems that exceed next-generation memory devices' yield and throughput requirements."

Safe Harbor Statement

This press release includes forward-looking statements concerning the timing of customer shipments. Actual results may differ materially from those in the forward-looking statements. Risks and uncertainties that may affect the forward-looking statements include: risks related to reliance on third-party suppliers, the risk that orders received may be postponed or canceled by the customer, and the risk of manufacturing and shipping delays.

About Tera Probe, Inc.

Tera Probe is a new start-up company that will serve as the world's largest wafer-testing service. The company began operations on October 1, 2005, and is providing wafer testing for Elpida, and will provide wafer testing for other semiconductor company's memory and logic products in the near future.

About Canon Sales Co., Inc.

Canon Sales, the independent Japanese marketing arm of Canon Inc., is a leading distributor of copiers, computer equipment, peripheral equipment, optical products, photographic equipment and telecommunications products. The Company was established in 1968 and listed its shares on the First Section of the Tokyo Stock Exchange in 1983. In addition to selling Canon brand products, Canon Sales has established itself as a systems integrator and vendor of top-quality computers, related products and software from companies overseas.

About ESI

Electro Scientific Industries (ESI) is a pioneer and leading supplier of world-class production laser systems that help its microelectronics customers achieve compelling yield and productivity gains. The company's industry-leading, application-specific products enhance electronic-device performance in three key sectors -- semiconductors, components and electronic interconnect -- by enabling precision fine-tuning of device microfeatures in high-volume manufacturing environments. Founded in 1944, ESI is headquartered in Portland, Ore. More information is available at www.esi.com