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                             FOR IMMEDIATE RELEASE

CONTACT:    Elliot Konopko
            Axsys Technologies, Inc.
            (212) 593-7900

                  AXSYS TECHNOLOGIES ANNOUNCES COMMON STOCK
                     EXCHANGE OFFER FOR ITS PREFERRED STOCK

      New York, New York, February 12, 1997 -- Axsys Technologies, Inc. (NASDAQ
National Market: AXYS) announced today that its Board of Directors approved an
exchange offer for all outstanding shares of its $1.20 cumulative exchangeable
redeemable preferred stock. The Company will offer to exchange 0.75 newly
issued shares of its Common Stock for each outstanding share of preferred
stock.

      There are currently outstanding 2,568,940 shares of common stock plus
warrants and options to acquire up to an additional 347,140 shares of common
stock. The Company previously announced preliminary 1996 fully diluted earnings
per share of $.74 applicable to the common stock, before an extraordinary
charge of $.06 per share related to the early extinguishment of debt. On a pro
forma basis, assuming the exchange offer had been consummated on January 1,
1996, earnings per share applicable to the Common Stock in 1996 would have
increased between 5% and 18% (from $.74 per share to between $.78 and $.87 per
share), depending on the number of shares exchanged for common stock pursuant
to the exchange offer.

      There is currently no established trading market for the Preferred Stock.
Prior to August 27, 1996, the Preferred Stock was quoted on the NASDAQ
Small-Cap Market. On that date, the Preferred Stock was delisted from trading
on the NASDAQ Small-Cap Market due to a failure to satisfy the National
Association of Securities Dealers, Inc. requirement that there be at least two
market makers in the Preferred Stock. During 1996, prior to delisting, the
highest bid and sales prices of the Preferred Stock reported on the NASDAQ
Small-Cap Market were $5.50 and $7 per share, respectively. The preferred stock
has a liquidation preference of $8 per share, plus unpaid dividends at the time
of liquidation.

      The closing bid and last sales prices yesterday of the Common Stock
reported on the NASDAQ National Market were $15 and $16 per share,
respectively.

      Stephen W. Bershad, Chairman of the Board and Chief Executive Officer of
the Company, beneficially owns 149,041 shares of Preferred Stock, representing
approximately 20% of the outstanding shares of Preferred Stock, and 1,137,032
shares of Common Stock, representing approximately 44% of the outstanding
shares of Common Stock He has advised the Company that he intends to tender all
of his shares of Preferred Stock pursuant to the Exchange Offer.

      Holders of shares of preferred stock accepted for exchange will not
receive any separate payment in respect of dividends not paid subsequent to
February 22, 1996, the last date on which dividends payable on the Preferred
Stock were paid. Unpaid dividends are $1.13 per share at January 31, 1997.

      The Company intends to file with the Securities and Exchange Commission
and mail to stockholders shortly exchange offer documents setting forth the
terms of the exchange offer. The Exchange Offer will commence upon filing and
mailing and will be held open for 20 business days, unless extended. This press
release does not constitute an offer to sell or the solicitation of an offer to
buy securities, which will be made only by the exchange offer documents.

      Axsys Technologies is a leading supplier of precision optical and
positioning components and sub-systems. The Company also manufactures and
distributes electrical connectors, precision bearings and other precision
components.





