AXSYS TECHNOLOGIES ADDED TO THE NEW RUSSELL MICROCAP^TM INDEX

ROCKY HILL, CT - July 5, 2005 -- Axsys Technologies, Inc. (NASDAQ:AXYS) today announced that it was added to the new Russell Microcap^TM Index. More than $2.5 trillion in assets are benchmarked to Russell Indexes, including more than $450 billion invested in passive index funds that use them as a model.

Stephen W. Bershad, Chairman and CEO of Axsys Technologies, stated, "Being added to this new Russell Index is an important milestone for the Company. Additionally, our inclusion in the Index will increase Axsys' visibility among investors and funds that use the Russell Indexes as the benchmark of their investment strategy."

About Axsys

Axsys Technologies, Inc. is a vertically integrated supplier of precision optical solutions for high technology applications, serving the aerospace, defense and high performance commercial markets. For more information, visit 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, including without limitation: changes in the U.S. federal government spending priorities; the Company's ability to compete in the industries in which it operates, including the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers; the potential for the Company's backlog to be reduced or cancelled; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully, including the recent acquisition of Diversified Optical Products; the Company's ability to manage costs under the Company's fixed-price contracts effectively; and changes in general economic and business conditions. These statements reflect the Company's current beliefs and are based upon information currently available to Axsys. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time, and we specifically disclaim any obligation to update these statements. For more information concerning the foregoing risks and uncertainties, see the Securities and Exchange Commission filings for Axsys.