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ESI Announces Settlement in IP Infringement Litigation

Electro Scientific Industries, Inc. (NASDAQ:ESIO), a leading supplier of innovative laser-based manufacturing solutions for the microtechnology industry, today announced that the company has a reached a settlement agreement with All Ring Tech Co. Ltd. (All Ring) related to ESI’s claim of infringement of one of its patents pertaining to electronic component tester technology. All Ring has agreed to pay ESI the sum of TWD 475 million (approx. USD 16.3 million) as settlement and to discontinue selling the infringing products. ESI estimates that the net financial impact of the settlement and related costs will be an increase of approximately $15.8 million to operating income and approximately $10 million to net income after income taxes, for its fiscal 2013 third quarter, which ends December 29, 2012.

“ESI has made significant investments over many years to develop innovations in passive component test technology for our customers,” said Sean Phillips, General Manager, ESI Component Test and Inspection Division. “We are pleased that our efforts through the Taiwan court system have been rewarded by reaching a significant monetary award settlement with All Ring. This outcome is the result of ESI’s commitment to vigorously defend itself against those choosing to infringe our Intellectual Property. Our customers depend on ESI for innovative test solutions to meet their challenges in the component test marketplace. Defending our IP enables us to continue investing in solutions for our customers.”

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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