---

GSI Lumonics Announces Over $7.5 Million in Orders for Laser Trim Systems

28 January 2000

GSI Lumonics Announces Over $7.5 Million in Orders for Laser Trim Systems

    KANATA, Ontario, Jan. 27 -- GSI Lumonics Inc.
today announced that it has received over
$7,500,000 cumulative fourth quarter orders for Laser Trim Systems from North
American semiconductor manufacturers.  All orders will be fulfilled in the
first half of 2000.
    Laser trimming allows semiconductor manufacturers to produce precision
linear and mixed signal devices with increased functionality on smaller
geometry die.
    Reducing die size enhances semiconductor manufacturers' ability to shrink
packages and maintain cost controls for price sensitive components driving the
explosion in new communications, consumer, personal computer and automotive
applications.
    "We continue to work together with our customers in providing effective
process systems that successfully address the challenges of high volume
complex IC production", said Charles Winston, President & CEO, GSI Lumonics.
    Laser trim of precision linear and mixed signal semiconductor devices is a
more cost effective process tool compared to traditional circuit adjustment
alternatives, which place limits on the ability to reduce die size. These
systems allow circuit designers to focus on the functionality and circuit
performance required by new and future applications.
    "Market success requires the integration of the precision trim technology
with the powerful measurement capabilities of mixed signal automatic test
equipment (ATE)", added Winston, " As each customer has unique test
requirements, we developed the Universal Tester Interface to easily integrate
our systems with the most popular commercial ATE."
    GSI Lumonics Inc. brings laser-based automated advanced manufacturing
systems, instrumentation and components to leading industrial companies
worldwide. The Company supplies products and service to the semiconductor,
electronics, medical, automotive, aerospace and consumer packaging markets.
GSI Lumonics' common shares are listed on Nasdaq and The Toronto Stock
Exchange. The Company's web site address is http://www.gsilumonics.com.

    For further information:
    Fran Crecco
    Investor Relations
    978-439-5511 (ext: 6104)

    To the extent this news release discusses financial projections,
information or expectations about GSI Lumonics Inc., products or markets, or
otherwise makes statements about the future, such statements are forward
looking and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from the statements made. The
factors include the fact that the companies' 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 continued volatility in Asia and 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 companies, similar risks
to the companies of delays in their new products and other risks detailed in
the companies' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.