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ESI Appoints Edward C. Grady as CEO to Replace Nicholas Konidaris

Electro Scientific Industries, Inc. (Nasdaq: ESIO), a leading supplier of innovative laser-based manufacturing solutions for the microtechnology industry, today announced that Edward C. Grady, a member of the company’s Board of Directors, has been appointed President and CEO of the company to succeed Nicholas Konidaris, effective immediately.

"We are fortunate to have been able to secure the services of Ed Grady as our new CEO," said Jon Tompkins, Chairman of the Board of ESI. "He has significant industry and leadership experience, having been the CEO of Brooks Automation and Executive Vice President at KLA-Tencor overseeing multiple divisions. Prior to KLA-Tencor he was President and CEO of Hoya Micromask. In addition, he knows the company well from his service as a director. We believe that in the near term Ed can drive the company to execute on its strategy."

"I look forward to taking the lead at ESI," said Ed Grady. "The company has outstanding talent and technology and has great opportunities for growth. This will be an exciting time for the company."

"We are grateful to Nick for his decade of outstanding leadership at ESI, in particular his oversight of the company's transition from being primarily a memory repair business to having a diversified platform that includes the new industry of laser microfabrication, which ESI has pioneered," continued Mr. Tompkins. "We wish Nick well in the future."

About ESI, Inc.

ESI is a leading supplier of innovative, laser-based manufacturing solutions for the microtechnology industry. Our systems enable precise structuring and testing of micron to submicron features in electronic devices, semiconductors, LEDs and other high-value components. We partner with our customers to make breakthrough technologies possible in the microelectronics, semiconductor and other emerging industries. Founded in 1944, ESI is headquartered in Portland, Ore., with global operations from the Pacific Northwest to the Pacific Rim. More information is available at www.esi.com.

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