GSI Group Inc. Announces Release of Shares Held in Escrow

GSI Group Inc. GSIG today that the United States District Court for the District of Massachusetts has entered an order granting final approval of the previously announced settlement in the putative shareholder class action entitled Wiltold Trzeciakowski, Individually and on behalf of all others similarly situated v. GSI Group Inc., Sergio Edelstein, and Robert Bowen, Case No. 08-cv-12065 (GAO), filed on December 12, 2008. The Company's contribution to the settlement amount was limited to the balance of the Company's self-insured retention. As a result of the court's final approval of the settlement, 993,743 shares of the Company's common stock that were placed in a reserve account and held in escrow for the benefit of the holders of Section 510(b) claims will be released to the Company's shareholders entitled to such shares. The Company expects to distribute the shares to each shareholder entitled to such shares as soon as practicable in the same manner as such shareholder received shares of the Company following the Company's emergence from bankruptcy.