GSI Group Announces CFO's Intent to Retire and Also Appointment of a New General Counsel CFO Will Remain with Company Throughout Successor Search and Transition BILLERICA, Mass., June 23 /PRNewswire-FirstCall/ -- GSI Group Inc., (Nasdaq: GSIG; TSX: GSI) announced today as part of a planned transitional move, Tom Swain, Chief Financial Officer, has notified the Company of his intent to retire as CFO once his successor has been named. Mr. Swain will continue to serve as Vice President responsible for compliance and business controls until his retirement July 2007, after which he may elect to serve as a consultant to the Corporation. Mr. Swain will serve on the CFO search Committee with the President and CEO and Chairman of the Board. "We are extremely fortunate to have had Tom's leadership as CFO during one of the most challenging periods of GSI's history. The challenges were further compounded by the increasingly complex regulatory environment facing all public companies. I am particularly pleased that Tom has agreed to continue with us to ensure a seamless transition and to accelerate the upgrade of our control systems and processes," said Charles Winston, President and CEO. Mr. Swain has been with GSI Group since 1996 as a result of the acquisition of View Engineering where he served as CFO and later, CEO. Prior to becoming CFO for GSI Group in 2000, Mr. Swain held a number of key assignments including division management and business development. New General Counsel Announced GSI is also pleased to announce the appointment of Daniel Lyne as General Counsel and Secretary for the Corporation. Prior to joining GSI, Mr. Lyne was partner at Hanify and King where he specialized in Business Litigation, Intellectual Property and Financial and Accounting Litigation for nearly twenty years. As a member of the Executive Team reporting to the President and CEO, Charles Winston, Mr. Lyne will be responsible for developing and protecting the strategic and operational interests of the Company. "I am pleased to have Dan on my team where his skills and experience will be invaluable. Dan has been working with GSI for over fifteen years on various matters as external counsel, so he comes with intimate knowledge of our company," said Charles Winston. Safe Harbor Certain statements in this news release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements may relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, tax issues and other matters. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "objective" and other similar expressions. Readers should not place undue reliance on the forward- looking statements contained in this news release. Such statements are based on management's beliefs and assumptions and on information currently available to management and are subject to risks, uncertainties and changes in condition, significance, value and effect. Other risks include the fact that the Company's sales have been and are expected to continue to be dependent upon customer capital equipment expenditures, which are, in turn, affected by business cycles in the markets served by those customers. Other factors include volatility in the semiconductor industry, the risk of order delays and cancellations, the risk of delays by customers in introducing their new products and market acceptance of products incorporating subsystems supplied by the Company, similar risks to the Company of delays in its new products, our ability to continue to reduce costs and capital expenditures, our ability to focus R&D investment and integrate acquisitions and other risks detailed in reports and documents filed by the Company with the United States Securities and Exchange Commission and with securities regulatory authorities in Canada. Such risks, uncertainties and changes in condition, significance, value and effect, many of which are beyond the Company's control, could cause the Company's actual results and other future events to differ materially from those anticipated. The Company does not, however, assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements. Raymond Ruddy Investor Relations of GSI Group +1-978-439-5511 ext. 6170 http://www.gsigrp.com/ DATASOURCE: GSI Group Inc. CONTACT: Raymond Ruddy, Investor Relations of GSI Group, +1-978-439-5511 ext. 6170 Web site: http://www.gsigrp.com/ Company News On-Call: http://www.prnewswire.com/comp/107189.html

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