GSI Group Receives Recognition
from Powerchip Semiconductor

WILMINGTON, MA, January 2005 — GSI Group Inc. (Nasdaq: GSLI and TSX: GSI) has been recognized by Powerchip Semiconductor Corp. (PSC) for outstanding technological contributions to PSC’s 300mm fab development. This award was presented to GSI Group at PSC’s 10th year anniversary event and celebration of success on November 16, 2004 in Taipei, Taiwan. The event was attended by Taiwan’s Vice President, Annette Lu.

GSI Group supplies PSC with its leading technology WaferRepair™ system, used by Powerchip to dramatically improve yield during the production of DRAM memory. In addition, PSC utilizes other semiconductor manufacturing equipment from GSI Group, including wafer marking systems.

Commenting on the award, Nino Federico, Vice President and General Manager of GSI Group’ Laser Systems Group, stated, “We are pleased to have been recognized, this time by PSC, for providing critical enabling technology that has allowed them to make new gains in their 300mm fab development. We are committed to continue our efforts as partners with PSC and our other customers as they advance their processes.