GSI Group Inc. to Restate Financial Results for 2006

    BEDFORD, Mass., March 30 /CNW/ -- GSI Group Inc. (Nasdaq: GSIG), a
supplier of precision technology and semiconductor systems, today announced
that it has identified errors related to timing of the recognition of revenue
from sales to certain customers in its Semiconductor Systems Segment during
fiscal year 2006. The Audit Committee of the Board of Directors of GSI Group
has concluded that the range of potential adjustments resulting from the
identified errors is material to the 2006 interim and annual historical
financial statements of GSI Group.  As a result, the Audit Committee has
determined that GSI Group's previously issued interim and annual historical
financial statements for fiscal year 2006 should no longer be relied upon.

    Further, GSI Group announced that substantially all amounts due from
customers associated with these transactions have been paid and substantially
all of the customer obligations associated with these 2006 transactions have
been fulfilled. GSI Group disclosed that it does not currently expect that its
cash position will be materially impacted by the correction of these
accounting errors.

    GSI Group also announced that its Audit Committee, with the assistance of
independent legal counsel and forensic accountants, has not yet concluded its
review of transactions in its Semiconductor Systems Segment and other sales
transactions that contain arrangements with multiple deliverables for 2006,
2007 and 2008. The Audit Committee's review is ongoing and additional
adjustments to GSI Group's historical financial statements may be required as
a result of the review.

    About GSI Group Inc.

    GSI Group Inc. supplies precision technology to the global medical,
electronics, and industrial markets and semiconductor systems. GSI Group
Inc.'s common shares are listed on Nasdaq (GSIG).

    Forward Looking Information

    Certain statements in this release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
are based on current expectations and assumptions that are subject to risks
and uncertainties. All statements contained in this press release that do not
relate to matters of historical fact should be considered forward-looking
statements. These forward-looking statements include statements regarding the
qualitative and quantitative effects of the restatement, the periods covered
by the restatement, the nature of the Audit Committee's review and any
anticipated conclusions of GSI Group, its Audit Committee or management, and
other statements that are not historical facts. These forward looking
statements are subject to risks, uncertainties and changes in financial
condition, unknown factors and other items described in GSI Group's annual
report on Form 10-K for the fiscal year ended December 31, 2007 and the
quarterly reports on Form 10-Q filed with the Securities and Exchange
Commission. Such statements are based on management's beliefs and assumptions
and on information currently available to GSI Group's management. Actual
results may differ materially from the preliminary expectations expressed or
implied in these forward-looking statements due to various risks,
uncertainties or other factors, including the outcome and results of the
review by the Audit Committee and GSI Group's independent registered public
accounting firm. GSI Group disclaims any obligation to update any
forward-looking statements as a result of developments occurring after the
date of this document.

    For more information contact: Sergio Edelstein, GSI Group Inc.,
1-781-266-5700.

For further information: Sergio Edelstein of GSI Group Inc.,
+1-781-266-5700 Web Site: http://www.gsig.com