Photon Dynamics confirms closing status in merger with Orbotech

Photon Dynamics's principal remaining closing condition to its merger with Orbotech, other than conditions that by their nature may only be satisfied at or immediately prior to the closing, is clearance by the Committee on Foreign Investment in the United States ("CFIUS"). The waiting period for CFIUS currently expires on September 29, 2008, although a response may be issued on an earlier date. Photon Dynamics and Orbotech are actively cooperating with CFIUS in its review of the transaction.