GSI Group Announces an Order from RALEC
for Multiple Chip Component Trim Systems

BILLERICA, MA (July 14, 2003): GSI Group Inc., (Nasdaq: GSLI and TSX: GSI) announces the sale of ten W770 Chip Component Trim Systems to RALEC Electronic Corporation, a Taiwan-based ISO 9000 certified manufacturer of chip component products, including thick film chip resistors and chip networks.

Following a competitive evaluation, RALEC selected the GSI Group W770, with its high throughput and exceptional trimming accuracy. The W770 systems will be used in the production of RALEC’s more advanced components, including a new line of 0402 chip resistors and resistor networks.

According to Nino Federico, GSI Group Vice President and General Manager of the company’s Systems Division, “We are pleased that RALEC, an organization that prides itself on its ability to competitively provide high-quality, customer-driven product, has selected the W770 as the platform to meet its circuit trim needs.”

With approximately 2000 laser trim systems installed worldwide, GSI Group’ family of adaptable platforms enables the company to quickly tailor solutions that meet its customers diverse and unique requirements. The proven W770 system provides unsurpassed benchmark productivity for highest throughput at the lowest process costs.

RALEC Vice Chairman & CFO Denny Chen commented, “We are very pleased with the performance of the W770 systems. We believe these new tools will provide our customers with a higher quality product by more tightly controlling the trim process and the variations in final resistor values.”

RALEC Electronic Corporation uses state-of-the-art production technology to provide general and special purpose electronics components. For more information, please visit www.ralec.com.