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Press Release Contact:    investor@newport.com
 NEWPORT CORPORATION REPORTS
FIRST QUARTER 2008 RESULTS




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SECOND QUARTER 2008 BUSINESS OUTLOOK
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ABOUT NEWPORT CORPORATION
  INVESTOR CONFERENCE CALL
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SAFE HARBOR STATEMENT
 This news release contains forward-looking statements, including without limitation the statements
under the heading Second Quarter 2008 Business Outlook regarding Newports expected sales, timing
of shipment of backlog, gross margin, operating expenses, income tax rate, number of diluted common
shares, and earnings per diluted share for the second quarter of 2008, and the statements made by
Robert J. Phillippy and the company regarding the expansion of the Companys participation in the
photovoltaic market, the expected time frame for completion of the companys photovoltaic
applications lab and demonstration facility, the expected time frame for completion and expected
results of the performance improvement initiatives in its Lasers Division, the companys ability to
reduce SG&A spending as revenues increase, and the Companys sales and earnings growth in the
second half of 2008 and in 2009, that in each case are based on current expectations and involve
risks and uncertainties. Without limiting the generality of the foregoing, words such as may,
will, expect, believe, anticipate, intend, could, estimate or continue or the
negative or other variations thereof or comparable terminology are intended to identify
forward-looking statements. In addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are forward-looking statements. As
discussed in Newports Annual Report on Form 10-K for the year ended December 29, 2007, assumptions
relating to the foregoing involve judgments and risks with respect to, among other things, the
timing of acquisition and divestiture activities and the amounts of charges associated with those
activities; the strength of business conditions in the industries Newport serves, particularly the
semiconductor industry; Newports ability to successfully penetrate and increase sales to its
targeted end markets, particularly to photovoltaic customers and the life and health sciences
market; ability to successfully integrate businesses recently acquired; the levels of private and
governmental research funding worldwide; potential order cancellations and push-outs; potential
product returns; future economic, competitive and market conditions, including those in Europe and
Asia and those related to its strategic markets; whether its products will continue to achieve
customer acceptance; and future business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of Newport. Although Newport believes
that the assumptions underlying the forward-looking statements are reasonable, any of the
assumptions could prove inaccurate and, therefore, there can be no assurance that the results
contemplated in forward-looking statements will be realized. In light of the significant
uncertainties inherent in the forward-looking information included herein, the inclusion of such
information should not be regarded as a representation by Newport or any other person that
Newports objectives or plans will be achieved. Newport undertakes no obligation to revise the
forward-looking statements contained herein to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
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(Unaudited)
 Three Months EndedMarch 29,
    
    
    March 31,(In thousands)
    
    2008
    
    
    2007Net sales
    
    $
    115,243
    
    
    $
    107,264Cost of sales
    
    
    69,132
    
    
    
    60,633Gross profit
    
    
    46,111
    
    
    
    46,631Selling, general and administrative expenses
    
    
    29,791
    
    
    
    30,014Research and development expense
    
    
    11,444
    
    
    
    10,603Operating income
    
    
    4,876
    
    
    
    6,014Interest and other income (expense), net
    
    
    (483
    )
    
    
    201Income before income taxes
    
    
    4,393
    
    
    
    6,215Income tax provision, net
    
    
    668
    
    
    
    964Net income
    
    $
    3,725
    
    
    $
    5,251Net income per share:Basic
    
    $
    0.10
    
    
    $
    0.13Diluted
    
    $
    0.10
    
    
    $
    0.13Shares used in the computation of net income per share:Basic
    
    
    36,539
    
    
    
    40,303Diluted
    
    
    36,594
    
    
    
    41,487Other operating data:New orders received during the period
    
    $
    124,975
    
    
    $
    110,314Backlog at the end of period scheduled to ship within 12 months
    
    $
    128,204
    
    
    $
    115,424
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(Unaudited)
 March 29,
    
    
    December 29,(in thousands)
    
    2008
    
    
    2007ASSETSCurrent assets:Cash and cash equivalents
    
    $
    72,528
    
    
    $
    88,737Marketable securities
    
    
    61,942
    
    
    
    55,127Accounts receivable, net
    
    
    93,475
    
    
    
    87,606Notes receivable, net
    
    
    4,636
    
    
    
    3,821Inventories
    
    
    119,101
    
    
    
    113,969Deferred income taxes
    
    
    6,513
    
    
    
    6,248Prepaid expenses and other current assets
    
    
    16,071
    
    
    
    13,603Total current assets
    
    
    374,266
    
    
    
    369,111Property and equipment, net
    
    
    64,737
    
    
    
    61,872Goodwill
    
    
    174,197
    
    
    
    174,197Deferred income taxes
    
    
    17,055
    
    
    
    16,932Intangible assets, net
    
    
    45,159
    
    
    
    46,171Investments and other assets
    
    
    22,465
    
    
    
    21,664$
    697,879
    
    
    $
    689,947LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Short-term obligations
    
    $
    17,174
    
    
    $
    12,402Accounts payable
    
    
    34,453
    
    
    
    33,319Accrued payroll and related expenses
    
    
    22,896
    
    
    
    23,096Accrued expenses and other current liabilities
    
    
    25,443
    
    
    
    24,598Total current liabilities
    
    
    99,966
    
    
    
    93,415Long-term debt
    
    
    175,000
    
    
    
    175,000Obligations under capital leases, less current portion
    
    
    1,473
    
    
    
    1,381Accrued pension liabilities
    
    
    11,743
    
    
    
    10,740Other liabilities
    
    
    4,968
    
    
    
    4,966Stockholders equity
    
    
    404,729
    
    
    
    404,445$
    697,879
    
    
    $
    689,947
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(Unaudited)
 Three Months Ended(In thousands, except percentages)
    
    3/29/08
    
    3/31/07Sales by End MarketScientific research, aerospace and defense/security
    
    $
    38,439
    
    
    $
    34,859Microelectronics
    
    
    35,777
    
    
    
    31,490Life and health sciences
    
    
    20,703
    
    
    
    20,741Industrial and other
    
    
    20,324
    
    
    
    20,174Total
    
    $
    115,243
    
    
    $
    107,264As a percentage of net sales:Scientific research, aerospace and defense/security
    
    
    33.4
    
    
    
    32.5Microelectronics
    
    
    31.0
    
    
    
    29.4Life and health sciences
    
    
    18.0
    
    
    
    19.3Industrial and other
    
    
    17.6
    
    
    
    18.8Total
    
    
    100.0
    
    
    
    100.0Orders by End MarketScientific research, aerospace and defense/security
    
    $
    35,684
    
    
    $
    35,713Microelectronics
    
    
    40,499
    
    
    
    30,619Life and health sciences
    
    
    25,978
    
    
    
    22,122Industrial and other
    
    
    22,814
    
    
    
    21,860Total
    
    $
    124,975
    
    
    $
    110,314As a percentage of total orders:Scientific research, aerospace and defense/security
    
    
    28.5
    
    
    
    32.4Microelectronics
    
    
    32.4
    
    
    
    27.8Life and health sciences
    
    
    20.8
    
    
    
    20.0Industrial and other
    
    
    18.3
    
    
    
    19.8Total
    
    
    100.0
    
    
    
    100.0
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