GSI Group WaferRepair System Passes
All Acceptance at Powerchip Semiconductor

WILMINGTON, MA, May 2003 — GSI Group Inc. (Nasdaq: GSLI and TSX: GSI) announces that its flagship WaferRepair™ M430 system, which is used for yield optimization during the manufacture of memory and logic devices, has passed all acceptance tests and is qualified for production use at Powerchip Semiconductor Corporation (PSC) in Hsinchu, Taiwan.

According to Nino Federico, GSI Group’ Vice President and General Manager of the company’s Systems Division, “The acceptance of the M430 by Powerchip Semiconductor for use in their new 300mm fab is one more endorsement of the system’s technologies and our focus on the science of semiconductor memory repair. The M430 represents the safest and most advanced solution for this critical process step.”

Fully compatible with the automation requirements of new 300mm production facilities, the WaferRepair M430 is a leader in laser-based fuse processing for enhancement of DRAM, SRAM, Flash, ASIC, and other devices. Proprietary processes ensure safe, fast, and reliable processing of current and upcoming fuse materials and structures.

Powerchip Semiconductor Corporation focuses on the research and development, manufacturing, and marketing of DRAM memory and related products, and on providing foundry services for their customers. For more information, please visit www.psc.com.tw.