AXSYS TECHNOLOGIES ANNOUNCES REVISION IN 2002 RESULTS

ROCKY HILL, CONN. – March 28, 2003 – Axsys Technologies, Inc. (Nasdaq: AXYS), a global leader in the design, manufacture and distribution of precision opto-mechanical components and assemblies found in high performance aerospace, defense and commercial equipment for high-technology markets, today announced, concurrent with the filing of its Annual Report on Form 10-K, a revision in its 2002 results to reflect the establishment of a valuation allowance recorded for its net deferred tax asset.

Upon final review of our year-end financial results with our auditors and in light of the significant tax benefits generated during 2002 related to the sale of our Automation businesses and Teletrac Inc., we have reassessed the timing of the utilization of the $6.0 million net deferred tax asset reported at the time of our earnings release on February 13, 2003. As a result of this reassessment, we have elected to establish a valuation allowance, resulting in a $4.6 million tax charge within 2002. Although this non-cash valuation allowance results in a reduction of net deferred taxes as a balance sheet asset, Axsys will still be able to utilize these amounts to reduce future tax obligations in profitable periods. In accordance with Financial Accounting Standard No. 109 “Accounting for Income Taxes”, this deferred tax asset valuation allowance will be reduced and the future tax benefits will be recognized as taxable income is generated in 2003 and beyond.

Although the pre-tax operating results remain unchanged, as a result of the establishment of the valuation allowance, the net after-tax results previously announced for 2002 will be adjusted. The net loss of $2.4 million, or ($0.52) per diluted share for the year ended December 31, 2002 will be adjusted to a net loss of $7.1 million, or ($1.50) per diluted share. Each of the quarters of 2002 will be adjusted to reflect the establishment of the valuation allowance as set forth in Exhibit III. This change will have no impact on our cash flow.

During 2002, Axsys has focused on improving our resource allocation, expense management, and execution within our core operations. Axsys’ management believes that we are well positioned for the future, both financially and from a product offerings standpoint. As announced in our February 13, 2003 earnings release, we reported income before taxes from continuing operations in the fourth quarter of 2002 of $1.4 million. These financial results include a reversal of $235,000 for restructuring and special charges originally recorded earlier in the year. We believe that Axsys will remain profitable during 2003. In the event that future profits are recognized, the related taxes would reduce the valuation allowance until it is exhausted as opposed to being reported as an expense, which would have the effect of increasing future reported earnings per share.

Axsys Technologies, Inc. is a vertically integrated supplier of precision optical and motion control components and assemblies for high-technology applications, serving the aerospace, defense, semiconductor and graphic arts markets. For more information, contact Axsys Technologies Inc, at www.axsys.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as “expect,” “anticipate,” “plan,” ; “may,” “will,” “estimate” or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys’ reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.