Axsys Receives $3.3 Million Order to Produce Infrared Zoom Lens Assemblies for Air Defense System Upgrade

ROCKY HILL, CONN. - July 15, 2004 - Axsys Technologies, Inc. (NASDAQ: AXYS), a fully integrated supplier of precision optical assemblies and components used in a variety of high performance commercial, aerospac e and defense applications, announced today that it has received a $3.3 million contract to produce infrared zoom lens assemblies for use on an upgraded forward-looking infrared ("FLIR") camera for an air defense system. The cu rrent contract covers production through April 2005.

Axsys IR Systems (formerly Telic Optics, Inc.), located in North Billerica, Massachussets, began design work on the zoom lens assembly in 2003, partnering with a leading FLIR camera manufacturer. These efforts supported the development of an upgraded FLIR camera system.

James Howard, General Manager of Axsys IR Systems, commented, "Axsys IR Systems has been designing state-of-the -art infrared lens assemblies for over 15 years for a variety of programs and applications. This order recognizes our design expertise and our skill in integrating infrared optical components into more advanced optical assemblie s. This order represents a fraction of the fielded systems expected to be upgraded over the next few years and sh ould provide a basis for continued growth."

Stephen W. Bershad, Chairman and CEO of Axsys, added, "Since our acquisition of IR Systems less than three mont hs ago, their operating performance has exceeded our expectations. During the second quarter, IR Systems booked in excess of $5.0 million. Their bookings performance demonstrates the strong technical capabilities and customer r elationships that IR Systems has brought to Axsys."

Axsys Technologies, Inc. is a fully integrated supplier of precision optical assemblies and components used in a variety of high performance commercial and aerospace/defense applications. For more information, contact Axsys T echnologies, Inc. at www.axsys.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exch ange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "e xpect," "anticipate," "plan," "may," "will," "estimate" or other similar expressions. Because such statements appl y to future events, they are subject to risks and uncertainties that could cause the actual results to differ mate rially. 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, including without limitation: the intro duction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers, a reversal or slowdown of the modest economic recovery presently being experienced in the United States , Axsys' inability to achieve synergies in connection with the acquisition of Telic Optics, Inc. (dba IR Systems) , the incurrence of unexpected costs in connection with the acquisition and other contingencies and risks relating to the integration of IR Systems' operations and business.