GSI Lumonics to Stay in Canada

BILLERICA, Mass. -- GSI Lumonics Inc. (Nasdaq: GSLI and TSX: LSI) today announced that it has withdrawn the proposal submitted to its shareholders to restructure the Company as a publicly traded United States-domiciled corporation. The special meeting of the Company's shareholders, scheduled to be held on Monday, August 4, 2003 in Bedford, Massachusetts, has been cancelled.

"The Company's Board of Directors and management believed that the domicile issue was important. We wanted to ensure that all shareholders were able to express their opinions. Although, as of the close of business on Thursday, July 31, 2003, proxies representing more than half of the Company's common shares had been submitted indicating a vote in favor of the arrangement proposal, this number was not sufficient to achieve the high standard of a two-thirds majority required to carry the resolution. Therefore, it did not appear that the motion would be passed," said Charles Winston, President and Chief Executive Officer of the Company. "Now that this issue has been decided, we will continue to focus on maximizing shareholder value."

GSI Lumonics Inc.