Exhibit 99.1
 
 Press Release
 Contact:    investor@newport.com
 NEWPORT CORPORATION REPORTS
SECOND QUARTER 2008 RESULTS




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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 statements
regarding Newports expected sales and profitability in the third quarter of 2008 and the actions
being considered to improve its financial results for the second half of 2008 and for 2009, and
Newports anticipated recovery of amounts owed relating to the sale of its previously discontinued
operation. 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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(Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 28,
    
    
    June 30,
    
    
    June 28,
    
    
    June 30,(In thousands)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Net sales
    
    $
    117,664
    
    
    $
    110,904
    
    
    $
    232,907
    
    
    $
    218,168Cost of sales
    
    
    70,367
    
    
    
    61,843
    
    
    
    139,499
    
    
    
    122,476Gross profit
    
    
    47,297
    
    
    
    49,061
    
    
    
    93,408
    
    
    
    95,692Selling, general and administrative expenses
    
    
    30,092
    
    
    
    28,792
    
    
    
    59,883
    
    
    
    58,806Research and development expense
    
    
    12,341
    
    
    
    10,874
    
    
    
    23,785
    
    
    
    21,477Operating income
    
    
    4,864
    
    
    
    9,395
    
    
    
    9,740
    
    
    
    15,409Write-down of note receivable and other amounts related to
previously discontinued operations
    
    
    (7,060
    )
    
    
    
    
    
    
    (7,060
    )
    
    
    Interest and other income (expense), net
    
    
    (206
    )
    
    
    16
    
    
    
    (689
    )
    
    
    217Income before income taxes
    
    
    (2,402
    )
    
    
    9,411
    
    
    
    1,991
    
    
    
    15,626Income tax provision, net
    
    
    390
    
    
    
    1,448
    
    
    
    1,058
    
    
    
    2,412Net income (loss)
    
    $
    (2,792
    )
    
    $
    7,963
    
    
    $
    933
    
    
    $
    13,214Net income (loss) per share:Basic
    
    $
    (0.08
    )
    
    $
    0.20
    
    
    $
    0.03
    
    
    $
    0.33Diluted
    
    $
    (0.08
    )
    
    $
    0.20
    
    
    $
    0.03
    
    
    $
    0.33Shares used in the computation of net income (loss) per share:Basic
    
    
    36,009
    
    
    
    38,955
    
    
    
    36,273
    
    
    
    39,629Diluted
    
    
    36,009
    
    
    
    39,554
    
    
    
    36,385
    
    
    
    40,491Other operating data:New orders received during the period
    
    $
    110,076
    
    
    $
    111,920
    
    
    $
    235,051
    
    
    $
    222,234Backlog at the end of period scheduled to ship within 12 months
    
    
    
    
    
    
    
    
    
    $
    122,165
    
    
    $
    111,913
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 28,
    
    
    June 30,
    
    
    June 28,
    
    
    June 30,(In thousands)
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Net income (loss):Net income (loss)  GAAP
    
    $
    (2,792
    )
    
    $
    7,963
    
    
    $
    933
    
    
    $
    13,214Write-down of note receivable and other amounts related to previously
discontinued operations, net of tax impact
    
    
    6,759
    
    
    
    
    
    
    
    6,759
    
    
    
    Non-GAAP net income
    
    $
    3,967
    
    
    $
    7,963
    
    
    $
    7,692
    
    
    $
    13,214Net income (loss) per diluted share:Net income (loss)  GAAP
    
    $
    (0.08
    )
    
    $
    0.20
    
    
    $
    0.03
    
    
    $
    0.33Write-down of note receivable and other amounts related to previously
discontinued operations, net of tax impact
    
    
    0.19
    
    
    
    
    
    
    
    0.18
    
    
    
    Non-GAAP net income per diluted share
    
    $
    0.11
    
    
    $
    0.20
    
    
    $
    0.21
    
    
    $
    0.33
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(Unaudited)
 June 28,
    
    
    December 29,(In thousands)
    
    2008
    
    
    2007ASSETSCurrent assets:Cash and cash equivalents
    
    $
    65,142
    
    
    $
    88,737Marketable securities
    
    
    75,982
    
    
    
    55,127Accounts receivable, net
    
    
    90,095
    
    
    
    87,606Notes receivable, net
    
    
    3,923
    
    
    
    3,821Inventories
    
    
    112,820
    
    
    
    113,969Deferred income taxes
    
    
    6,366
    
    
    
    6,248Prepaid expenses and other current assets
    
    
    14,227
    
    
    
    13,603Total current assets
    
    
    368,555
    
    
    
    369,111Property and equipment, net
    
    
    65,266
    
    
    
    61,872Goodwill
    
    
    174,197
    
    
    
    174,197Deferred income taxes
    
    
    16,975
    
    
    
    16,932Intangible assets, net
    
    
    44,131
    
    
    
    46,171Investments and other assets
    
    
    16,362
    
    
    
    21,664$
    685,486
    
    
    $
    689,947LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Short-term obligations
    
    $
    15,192
    
    
    $
    12,402Accounts payable
    
    
    25,074
    
    
    
    33,319Accrued payroll and related expenses
    
    
    22,520
    
    
    
    23,096Accrued expenses and other current liabilities
    
    
    27,690
    
    
    
    24,598Total current liabilities
    
    
    90,476
    
    
    
    93,415Long-term debt
    
    
    175,000
    
    
    
    175,000Obligations under capital leases, less current portion
    
    
    1,432
    
    
    
    1,381Accrued pension liabilities
    
    
    11,510
    
    
    
    10,740Other liabilities
    
    
    4,908
    
    
    
    4,966Stockholders equity
    
    
    402,160
    
    
    
    404,445$
    685,486
    
    
    $
    689,947
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(Unaudited)
 Three Months Ended
    
    
    Six Months Ended(In thousands, except percentages)
    
    6/28/08
    
    
    6/30/07
    
    
    6/28/08
    
    
    6/30/07Sales by End MarketScientific research, aerospace and defense/security
    
    $
    38,015
    
    
    $
    39,887
    
    
    $
    76,452
    
    
    $
    74,659Microelectronics
    
    
    36,594
    
    
    
    32,963
    
    
    
    72,894
    
    
    
    64,733Life and health sciences
    
    
    20,941
    
    
    
    20,124
    
    
    
    41,708
    
    
    
    40,850Industrial manufacturing and other
    
    
    22,114
    
    
    
    17,930
    
    
    
    41,853
    
    
    
    37,926Total
    
    $
    117,664
    
    
    $
    110,904
    
    
    $
    232,907
    
    
    $
    218,168As a percentage of net sales:Scientific research, aerospace and defense/security
    
    
    32.3
    
    
    
    36.0
    
    
    
    32.8
    
    
    
    34.2Microelectronics
    
    
    31.1
    
    
    
    29.7
    
    
    
    31.3
    
    
    
    29.7Life and health sciences
    
    
    17.8
    
    
    
    18.1
    
    
    
    17.9
    
    
    
    18.7Industrial manufacturing and other
    
    
    18.8
    
    
    
    16.2
    
    
    
    18.0
    
    
    
    17.4Total
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0Orders by End MarketScientific research, aerospace and defense/security
    
    $
    38,383
    
    
    $
    40,601
    
    
    $
    74,065
    
    
    $
    76,314Microelectronics
    
    
    34,699
    
    
    
    31,153
    
    
    
    75,781
    
    
    
    61,941Life and health sciences
    
    
    16,763
    
    
    
    22,395
    
    
    
    43,284
    
    
    
    44,517Industrial manufacturing and other
    
    
    20,231
    
    
    
    17,771
    
    
    
    41,921
    
    
    
    39,462Total
    
    $
    110,076
    
    
    $
    111,920
    
    
    $
    235,051
    
    
    $
    222,234As a percentage of total orders:Scientific research, aerospace and defense/security
    
    
    34.9
    
    
    
    36.3
    
    
    
    31.5
    
    
    
    34.3Microelectronics
    
    
    31.5
    
    
    
    27.8
    
    
    
    32.3
    
    
    
    27.9Life and health sciences
    
    
    15.2
    
    
    
    20.0
    
    
    
    18.4
    
    
    
    20.0Industrial manufacturing and other
    
    
    18.4
    
    
    
    15.9
    
    
    
    17.8
    
    
    
    17.8Total
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0
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