June 28, 2005 — August Technology Corp. a supplier of inspection and defect analysis solutions for the microelectronic industries, and Nanometrics Inc. have terminated their merger agreement dated Jan. 21, 2005. The board of Bloomington, Minn.-based August Technology also has adopted a shareholder rights plan.
In accordance with the terms of its merger agreement with Nanometrics, August Technology paid a termination fee of $8.3 million, plus expenses, to Nanometrics. Nanometrics, based in Milpitas, Calif., designs, manufactures and markets high-performance process control metrology systems used in the manufacture of semiconductors, integrated circuits and flat panel displays.