Press Release
 Contact:    investor@newport.com
 NEWPORT CORPORATION ANNOUNCES
PROFIT IMPROVEMENT ACTIONS
  
    
    Transferring or outsourcing certain manufacturing processes, particularly in the
companys Lasers Division, to lower-cost sources in Asia, including the companys new
manufacturing facility in Wuxi, China;
    
    Reduction of approximately 8% to 10% of the companys total worldwide workforce, of
which approximately half of the eliminations will result from the outsourcing of certain
manufacturing processes; and
    
    Streamlining administrative processes and reducing costs across its facilities by
leveraging the completion of the companys three-year initiative to implement a common SAP
software platform worldwide.




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ABOUT NEWPORT CORPORATION
  SAFE HARBOR STATEMENT
 This news release contains forward-looking statements, including without limitation statements
regarding the actions being taken by Newport to improve its financial results for the second half
of 2008 and for 2009, and the timing and expected impact of these actions on Newports financial
results; Newports expected revenue in the third and fourth quarters of 2008 and its expectation of
increased revenue in 2009; its expected earnings per diluted share in the third and fourth quarters
of 2008 and its expectation of increased profitability in future periods; Newports anticipated
sale of a building and its anticipated recovery of amounts owed relating to the sale of its
previously divested business and the companys expected orders from photovoltaic customers in 2008.
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 outcome of legal proceedings
relating to the recovery of amounts due to Newport; 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; Newports ability to successfully
integrate businesses 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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Newport Corporation
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
  Third and Fourth Quarter Non-GAAP Net Income Per Diluted Share Reconciliation
 Three Months EndedSeptember 27,
    
    
    January 3,2008
    
    
    2009Anticipated GAAP Net Income (Loss) Per Diluted Share
    
    
    ($0.03) - $0.01
    
    
    $
    0.06 - $0.11Anticipated Charges Relating to Profit Improvement Actions
    
    $
    0.03 - $0.07
    
    
    $
    0.09 - $0.14Anticipated Non-GAAP Net Income Per Diluted Share
    
    $
    0.00 - $0.08
    
    
    $
    0.15 - $0.25
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