Exhibit 99.2


Zygo to sell Westborough Facility, Announces Expected Charge to Earnings Related
to the Discontinued Telecommunications Business

MIDDLEFIELD, Conn. - August 25, 2004 - Zygo Corporation (NASDAQ: ZIGO) announced
today that it has entered into an agreement to sell its vacant Westborough,
Massachusetts, facility. The sales transaction, anticipated to be completed in
the fall of 2004, is expected to generate approximately $2.0 million in cash,
net of selling expenses. The Company also announced that an impairment charge
will be recorded of $4.9 million, net of tax, in the fourth fiscal quarter ended
June 30, 2004 to reflect the change in the fair market value of the property.

Bruce Robinson, Zygo's Chief Executive Officer, commented: "The weak local real
estate market for clean room space has continued and this agreement reflects the
culmination of many months of diligent marketing efforts. This sale will mark
the completion of our exit from the telecommunications segment of our business."

Zygo Corporation, headquartered in Middlefield, Connecticut, is a worldwide
supplier of optical metrology instruments, precision optics, and electro-optical
design and manufacturing services, serving customers in the semiconductor
capital equipment and industrial markets. See ZYGO's web site at www.zygo.com
for additional information.

All statements other than statements of historical fact included in this news
release regarding the Company's financial position, business strategy, plans,
anticipated growth rates, and objectives of management of the Company for future
operations are forward-looking statements. Forward-looking statements are
intended to provide management's current expectations or plans for the future
operating and financial performance of the Company based upon information
currently available and assumptions currently believed to be valid.
Forward-looking statements can be identified by the use of words such as
"anticipate," "believe," "estimate," "expect," "intend," "plans," "strategy,"
"project," and other words of similar meaning in connection with a discussion of
future operating or financial performance. Actual results could differ
materially from those contemplated by the forward-looking statements as a result
of certain factors. Among the important factors that could cause actual events
to differ materially from those in the forward-looking statements are
fluctuations in capital spending in the semiconductor industry, fluctuations in
net sales to our major customer, manufacturing and supplier risks, dependence on
new product development, rapid technological and market change, international
operations, dependence on proprietary technology and key personnel, length of
the sales cycle, environmental regulations, and changes in expected costs of
discontinued operations. Further information on potential factors that could
affect Zygo Corporation's business is described in the Company's reports on file
with the Securities and Exchange Commission, including its Form 10-K for the
fiscal year ended June 30, 2003.


Contact:
For Further Information Call:
Walter Shephard
Vice President, Finance, and CFO
Voice: 860 704-3955