Massachusetts Technology Development Corporation announces acquisition of MicroE by GSI Lumonics, Inc., Returning 6 times MTDC's Investment

BILLERICA, Mass., April 12, 2004 - PRNewswire-FirstCall via COMTEX/ -- GSI Lumonics Inc. (Nasdaq: GSLI and TSX: LSI) today announced the signing of a definitive agreement under which GSI Lumonics will acquire all the shares of MicroE Systems Corp. for an all-cash purchase price of US $55.0 million. The transaction was approved by the Board of Directors of both companies and will be completed subject to customary closing conditions.

MicroE Systems, located in Natick, MA, is recognized as a technology leader in the design and manufacture of position encoders for precision motion control applications in data storage, semiconductor and electronics, industrial automation and medical markets. Company estimated revenue for the quarter ending April 4, 2004 was US $7.65 million.

Charles Winston, GSI Lumonics' President and Chief Executive Officer, said, "The agreement to acquire MicroE Systems is consistent with the Company's stated acquisition strategy. MicroE Systems products and technology will complement GSI Lumonics' existing portfolio of enabling precision motion component and subsystems. It is expected that this acquisition will be accretive to earnings in the first full quarter following the transaction's completion."

MTDC provides venture capital funding for start-up and early-stage technology companies. Since 1979, MTDC has invested more than $62 million in 118 Massachusetts firms.

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