Consumables

GSI Group Announces Restructuring of UK Based Laser Business

Wednesday 24. December 2008 - GSI Group Inc. (NASDAQ: GSIG) today announced the restructuring of its Rugby, UK based laser business. All volume manufacturing of legacy laser products will be moved from the UK to other GSI and former Excel Technology laser manufacturing sites.

This move will improve profitability through greater economies of scale and synergies with our new Excel Technology businesses.

The Rugby, UK team will focus on advanced laser development and on production of GSI’s newest fiber laser products. The team will relocate from its existing building to a more appropriate facility in the Rugby area.

The Rugby restructuring is expected to cost approximately $6.3M including a non-cash land and building impairment charge of approximately $3.6 million, employee termination costs of approximately $1.2 million, inventory write off of approximately $0.9 million and building maintenance and move related costs of approximately $0.6 million. Total cash-related charges are expected to be approximately $1.8 million. The restructuring is projected to be completed by the end of 2009 and generate annual pre-tax savings in the range of $2.0 to $3.0 million. For Q4 2008, the Company expects to book a pre-tax restructuring charge of approximately $4.9 million.