MIDDLEFIELD, Conn. -- Zygo Corporation (NASDAQ: ZIGO) Net sales of $21,298,000 for the third quarter and $61,260,000 for the nine months ended March 31, 2002 decreased by $17,419,000, or 45%, and $34,120,000, or 36%, from the comparable prior year periods. Included in third quarter of fiscal 2002 sales was a settlement for $3,000,000 associated with the cancellation of outstanding purchase orders from a semiconductor customer. Approximately 60% of this amount relates to payments for finished goods at contracted selling prices with the remainder representing cancellation charges for work in process and raw materials inventories. The Company recorded a net loss of $3,722,000 for the third quarter ended March 31, 2002 as compared to net earnings of $3,207,000 for the comparable quarter ended March 31, 2001. On a diluted per share basis, the net loss was $.21 per share for the quarter ended March 31, 2002, compared with net earnings of $.20 per share in the comparable prior year period. For the first nine months of fiscal 2002, the Company recorded a net loss of $9,112,000, or $.52 per share, as compared to net earnings of $5,929,000, or $.38 per share, for the comparable prior year period. Excluding the gain on sale of the Automation Systems Group in Longmont, Colorado (which was sold to Brooks Automation, Inc.) of $6,117,000 and related exit costs ($1,920,000), inventory write-downs ($808,000), and tax expense ($1,288,000), for the first nine months of fiscal 2002, the net loss was $11,213,000, or $.64 on a diluted per share basis. The net loss per share is based on the weighted average basic shares outstanding which equals the diluted weighted average shares. Zygo Corp.