MES INTERNATIONAL, INC., GSI GROUP INC. AND GSI GROUP CORPORATION
Regarding
Rights Offering


GSI Group Inc. (Pink Sheets: GSIGQ ) (the "Company" or "GSI") previously announced the commencement of a Rights Offering (as defined below) on June 4, 2010, in connection with the Final Fourth Modified Joint Chapter 11 Plan of Reorganization for the Company and certain of its subsidiaries, as confirmed by the United States Bankruptcy Court for the District of Delaware on May 27, 2010.


The Company is offering to sell to holders of its common shares up to a maximum of $85 million of new common shares of the reorganized Company ("New Common Shares") upon emergence from bankruptcy (the "Rights Offering"). The purchase price per New Common Share in the Rights Offering is $1.80.


The rights offering materials have been mailed to eligible holders of the Company's common stock. Those eligible holders that hold their shares through a bank, brokerage firm, or other nominee should receive the rights offering materials from their bank, broker, or nominee. A copy of the rights offering materials may be obtained from GSI's information agent for the Rights Offering, The Garden City Group, Inc., by contacting them at (866) 249-8112.


The purpose of this notice is to repeat statements from the rights offering materials regarding the identity of eligible holders able to participate in the Rights Offering. Except for certain limited exceptions (as described below), only record holders of common shares as of July 7, 2010, the expiration date of the Rights Offering, are eligible to participate in the Rights Offering. The commencement date of the Rights Offering (June 4, 2010) is not being used to determine ownership and/or eligibility to exercise rights. Prior to the Rights Offering expiration date of July 7, 2010, the right to participate in the Rights Offering shall be automatically transferred in connection with a transfer of the underlying common shares. However, purchasers should make sure their purchase of the underlying common shares settles by July 7, 2010 if they plan to participate in the Rights Offering.


For the avoidance of doubt, except for the limited exception described below, any person that subscribes in the Rights Offering (or their custodian) must be a holder of record of the common shares as of the Subscription Expiration Date (July 7, 2010) in order to be eligible to participate in the Rights Offering.


There is a very limited exception to the above eligibility requirements for holders who are current or former employees or directors of the Company who have vested rights to restricted common shares, for which shares have not yet been issued. For these holders only, the record date with respected to their vested share rights is the commencement date of the Rights Offering, June 4, 2010.


The above description of eligible holders is qualified in its entirety by the rights offering materials referenced above.


This announcement is not an offer to purchase or a solicitation of an offer to sell with respect to the Rights Offering. The Rights Offering is being made solely by rights offering materials, which set forth the complete terms of the Rights Offering.



GSI Restructuring Information


On November 20, 2009, GSI Group Inc. announced that it had finalized an agreement with a majority of its noteholders on a restructuring plan that will enable the Company to significantly reduce its outstanding debt, enhance liquidity and position the Company for future growth. To implement the pre-arranged restructuring, three of GSI's corporate entities -- GSI Group Inc., the parent Canadian holding company; GSI Group Corporation; and MES International, Inc., a non-operating subsidiary of GSI Group Corporation -- have filed voluntary petitions for Chapter 11 reorganization under the U.S. Bankruptcy Code in U.S. Bankruptcy Court in Wilmington, Delaware. No other subsidiaries and no subsidiaries outside of North America are included in the filing.


On May 24, 2010, GSI filed their Final Fourth Modified Joint Chapter 11 Plan of Reorganization (together with the supplement filed on May 27, 2010, the "Plan"). On May 27, 2010, after a hearing, an Order was entered by the Bankruptcy Court confirming the Plan (the "Confirmation Order"). On July 23, 2010, the Plan became effective. To view copies of the Plan, Confirmation Order and Notice of Effective Date, along with other related documents, please click here.


Additional information about GSI's restructuring is available on this web site. More information about GSI is available on the company's website at www.gsig.com.