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[March 12, 2010]

ESI Expands Its Singapore-Based Operations to Support Its Asian Micromachining & Passive Components Customers

SINGAPORE --(Business Wire)-- Electro Scientific Industries (News - Alert), Inc. (NASDAQ: ESIO), a leading provider of world-class photonic and laser systems for micro-engineering applications, today announced it has expanded its Singaporean operations and has opened a new Asia manufacturing and service plant in the Kaki Bukit industrial hub of Singapore. ESI (News - Alert) will initially use the facility for manufacturing and service of its micromachining and passive components product lines. The plant will also provide the company with the capability to manufacture and service the company's other new and existing product lines.

"We are pleased that ESI has chosen Singapore to establish its new Asia manufacturing and service plant. This new facility further strengthens Singapore's position as the preferred location for complex equipment manufacturing and to manage Global-Asian operations," said Ms. Anna Chan, assistant managing director, Singapore Economic Development Board.

"With close to 80 percent of our customer base in Asia, we have a responsibility to deliver fast service and top-quality products to the region," said Nick Konidaris, president and CEO of ESI. "With our own, dedicated manufacturing and service facility now open in Singapore, we will be able to better serve our customers in the Asia Pacific region and accelerate our growth. This move underscores ESI's ongoing initiative to increase our Asian presence and support infrastructure." About ESI Singapore ESI's Singaporean plant features 30,000 square feet of space, 19 laser stalls, 16 multi-purpose manufacturing cells, capability for a Class-1000 cleanroom, and a professional office area for all of its Singapore-based employees. The plant will enable ESI to readily support its customers throughout Asia. The facility is now fully operational, and a private ribbon-cutting ceremony is scheduled for this week. Several key customers, suppliers and members of Singapore's Economic Development Board are expected to attend.

About ESI, Inc.

ESI is a pioneer and leading supplier of world-class photonic and 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.

Forward-Looking Statements This press release includes forward-looking statements concerning ESI's Singapore plant. Actual results may differ materially from those in the forward-looking statements. Risks and uncertainties that may affect the forward-looking statements include: the relative strength and volatility of the electronics industry, including the impact of the current weakness in the memory market and cautious spending in the broader capital equipment markets we serve -- which is dependent on many factors including component prices, global economic strength and political stability, and overall demand for electronic devices (such as capacitors, semiconductor memory devices and advanced electronic packages) used in wireless telecommunications equipment, computers and consumer and automotive electronics; the ability of the company to respond promptly to customer requirements; the ability of the company to develop, manufacture and successfully deliver new products and enhancements; the company's need to continue investing in research and development; and the company's ability to create and sustain intellectual property protection around its products.

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