Newport Corp. Acquires Swedish Metrology Company to Establish World-Class Leadership in Advanced Industrial Measurement Solutions.

Business Editors

IRVINE, Calif.--(BUSINESS WIRE)--Dec. 18, 2000

Newport Corp. (Nasdaq:NEWP) today announced the acquisition of CE Johansson AB (CEJ), a privately held, Swedish-based, global supplier of advanced metrology systems.

CEJ will be combined with Newport's Video Metrology Division, giving Newport a full line of enhanced 3D coordinate metrology products.

Terms of the acquisition were not disclosed. CEJ sales are expected to be approximately USD $18 million for the year 2000. The company's results are anticipated to have an immaterial impact on Newport's results for its fourth quarter ending Dec. 31, 2000, and are expected to be slightly accretive to earnings per share in 2001.

Robert G. Deuster, Newport chairman and chief executive officer, said, "We believe the combined synergy and strength of the Johansson advanced 3D coordinate measurement systems, coupled with Newport's RAM Optical video metrology technology, will position Newport as one of the most comprehensive suppliers of advanced metrology solutions in the world. Together, both businesses bring an important depth and breadth of experience in providing micron and sub-micron measurement solutions to challenging industrial applications. Our objective with this combination is for the resulting products to address the clear trend toward multi-sensor systems and to further enhance Newport's capabilities to embed sophisticated metrology solutions in automation applications for our prime markets."

Mark V. Edwards, vice president and general manager of Newport's Video Metrology Division, added, "CEJ's European presence complements Newport's strong distribution channel in the U.S., enhancing our offerings to customers geographically as well as technologically. The success of CEJ's recently commercialized, shop-hardened Ruby(TM)coordinate measurement machine (CMM) demonstrates its ability to introduce products that exceed customer expectations. We are confident that the optical metrology products provided by Newport's RAM Optical business, and the touch-probe technology provided by CEJ, will give our customers a one-stop shopping solution for both contact and non-contact measuring systems."

Newport Corp. is a global leader in the design, manufacture and marketing of high-precision components, instruments and integrated systems to the fiber optic communications, semiconductor equipment, computer peripherals and scientific research markets. The company's innovative products are designed to enhance productivity and capabilities of test and measurement and automated assembly for precision manufacturing, engineering and research applications. Customers include Fortune 500 corporations, technology companies and research laboratories in commercial, academic and government sectors worldwide.

This news release contains forward-looking statements, including assumptions related to the company's ability to successfully integrate the acquisition of CE Johansson and develop multi-sensor metrology products, future revenue and earnings performance, and expectations of becoming a global supplier of state-of the-art metrology systems. As discussed in Newport's Annual Report on Form 10-K for the year ended Dec. 31, 1999, assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, including those in Europe and Asia, and those conditions related to its strategic markets, particularly the video metrology market; whether its products, particularly those targeting the company's strategic markets, will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.