GSI Group Opens Major New Sales,
Manufacturing & Service Facility in China

BILLERICA, MA, USA, November 10, 2005 — GSI Group Inc. (Nasdaq: GSIG) today opened a major new facility to serve the growing markets in mainland China for its precision motion, laser, and laser system technology products. Charles Winston, President & CEO of GSI Group, was on-site to officially open the facility. Located in the Suzhou Industrial Park in Jiangsu, the 5000 square meter facility will feature demonstration equipment, meeting rooms, manufacturing space, and office space.

This purpose-built facility will initially house about 80 employees and will be the company’s base in the region for product demonstrations, manufacturing, and service. In addition, the company will maintain its existing network of sales and service centers in Beijing, Shenzhen, and Shanghai. The Shanghai office is also newly opened. Location and contact information for all of the facilities is available from the company’s web site.

According to Trevor Ness, Operations Director for the new facility, “With the opening of this new facility, GSI Group has taken an important step in seriously addressing the markets for our products in mainland China. With local manufacturing and service, we increase our competitiveness and serve our customers better.” The company also expects reduced costs of manufacture for the products produced at the site.

GSI Group Inc. develops and delivers the enabling technology solutions that bring advanced manufacturing applications to life. Our leading brands include precision motion products, lasers, and laser systems, and are used to increase efficiency and productivity in the global medical, semiconductor, electronics, and industrial markets. GSI Group is a global company with manufacturing, sales and support facilities throughout Europe, Asia, and North America. The company’s common shares are listed on Nasdaq (GSIG) and The Toronto Stock Exchange (GSI). For more information on GSI Group, please visit: www.gsig.com