Axsys Technologies Signs $6.7 Million Contract for Laser Scanners for

    Aerospace Writers/Business Editors

    ROCKY HILL, Conn.--(BUSINESS WIRE)--March 21, 2005--Axsys Technologies, Inc. (NASDAQ:AXYS) today announced that it signed an exclusive 18-month supply agreement to deliver ultra-precision air bearing scanners to an unnamed digital imaging customer. The contract is valued at $6.7 million.
    Mehrdad Ketabchi, General Manager of Axsys' Imaging Systems business, stated, "We believe that this contract award is a direct result of Axsys' unique engineering and manufacturing capabilities. The systems we will deliver under this contract will enable our customer to offer digital imaging equipment with industry-leading accuracy and performance."
    The Company noted that the expected revenues from this agreement are incorporated in the 2005 financial guidance Axsys announced on February 9, 2005.

    About Axsys

    Axsys Technologies, Inc. is a vertically integrated supplier of precision optical solutions for high technology applications, serving the aerospace, defense and high performance commercial markets. For more information, visit www.axsys.com.

    This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expect", "anticipate", "plan", "may", "will", "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission, including without limitation: the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers, a reversal or slowdown of the modest economic recovery presently being experienced in the United States, Axsys' inability to achieve synergies in connection with any acquisition, the incurrence of unexpected costs in connection with the acquisition and other contingencies and risks relating to the integration of Telic's operations and business.

--30--TM/ny*

CONTACT: Axsys Technologies, Inc. David A. Almeida, 860-257-0200 www.axsys.com or Investor Relations Counsel: The Equity Group Inc. Loren G. Mortman, 212-836-9604 LMortman@equityny.com or Lauren Barbera, 212-836-9610 LBarbera@equityny.com www.theequitygroup.com

KEYWORD: CONNECTICUT INDUSTRY KEYWORD: AEROSPACE/DEFENSE GOVERNMENT AIRLINES TRANSPORTATION MARKETING AGREEMENTS SOURCE: Axsys Technologies, Inc.

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