AXSYS SIGNS $18.6 MILLION CONTRACT FOR PRODUCTION OF OPTICAL COMPONENTS FOR THE JAMES WEBB SPACE TELESCOPE

ROCKY HILL, CONN. - August 19, 2004 - Axsys Technologies, Inc. (NASDAQ: AXYS), a fully integrated supplier of precision optical assemblies and components used in a variety of high performance commercial, aerospa ce and defense applications, announced that it has received a $18.6 million definitive contract from Ball Aerospac e and Technology Corporation to produce beryllium optical substrates for the James Webb Space Telescope ("JWST"). The contract contains $9.9 million of production revenues and $8.7 million for facilitization.

As previously announced in September of 2003, Axsys Technologies' Precision Machined Products division, located in Cullman, Alabama, was selected as part of the beryllium mirror team to produce a 6.5-meter primary mirror to be u sed on the JWST. The primary mirror is comprised of 18 individual lightweight beryllium segments. Northrop Grumm an is the prime contractor for JWST, which is due to launch in 2011, and will replace the Hubble as NASA's premier space telescope. Because of the large size of the primary mirror, JWST will be significantly more sensitive than ground-based infrared telescopes, enabling it to search for the first stars and galaxies formed in the universe b illions of years ago.

Axsys' contract includes the production of optical substrates for an engineering development unit, 18 primary mirr or segments and support structures. We expect to complete the engineering development unit in the first quarter o f 2005, with delivery of all 18 segments by the end of 2006.

Stephen W. Bershad, Chairman and CEO of Axsys Technologies, Inc. commented: "This order is very significant to Axs ys and demonstrates our technical and market leadership in producing precision optical products for demanding appl ications. Additionally, it provides Axsys with an expanded knowledge base that we will be able to apply to new pr ograms for applications beyond 2006."

C.R. "Bud" Jenkins, President of Axsys' Aerospace and Defense Group added: "We have been working with NASA, Ball A erospace and the other members of the beryllium mirror team for over five years to prove the viability of berylliu m on this program. We are excited about our contribution to such an important program and look forward to the succ essful launch and deployment of leading-edge technology."

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

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchang e Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expe ct," "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 materi ally. 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 introdu ction of competing products or technologies by other companies and/or pricing pressures from competitors and/or cu stomers or reversal or slowdown of the modest economic recovery presently being experienced in the United States.