<SUBMISSION>
<ACCESSION-NUMBER>0001193805-04-000525
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20040511
<FILING-DATE>20040324
<EFFECTIVENESS-DATE>20040324
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AXSYS TECHNOLOGIES INC
<CIK>0000206030
<ASSIGNED-SIC>3827
<IRS-NUMBER>111962029
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1228
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-16182
<FILM-NUMBER>04686320
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>175 CAPITAL BLVD SUITE 103
<CITY>ROCKY HILL
<STATE>CT
<ZIP>06067
<PHONE>2018711500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>175 CAPITAL BLVD SUITE 103
<CITY>ROCKY HILL
<STATE>CT
<ZIP>06067
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>VERNITRON CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e400290_def14a-axsys.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<html>
<head>
<title>Untitled Document</title>
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<body>

<p align="center"><b><font size="2" face="Times New Roman, Times, serif"><br>
  UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  Washington, D.C. 20549 </font></b></p>
<p align="center"><font size="3" face="Times New Roman, Times, serif"> <b>SCHEDULE
  14A INFORMATION</b></font></p>
<p align="center"><b><font size="2" face="Times New Roman, Times, serif"> Proxy
  Statement Pursuant to Section 14(a) of the Securities<br>
  Exchange Act of 1934 (Amendment No. )</font></b></p>
<p><font size="2" face="Times New Roman, Times, serif">Filed by the Registrant &nbsp;&nbsp;
  </font><FONT size="3" face="wingdings">&#254;</FONT></p>
<p><font size="2" face="Times New Roman, Times, serif">Filed by a Party other
  than the Registrant &nbsp;&nbsp;</font><FONT size="3" face="wingdings">&#111;</FONT></p>
<p><font size="2" face="Times New Roman, Times, serif">Check the appropriate box:</font></p>
<table width="100%"  border="0" cellspacing="2" cellpadding="0">
  <tr valign="top">
    <td width="3%"><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">Preliminary Proxy
      Statement</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">Confidential, for
      Use of the Commission Only<br>
      (as permitted by Rule 14a-6(e)(2)) </font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#254;</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">Definitive Proxy Statement</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">Definitive Additional
      Materials</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">Soliciting Material
      Pursuant to ss.240.14a-12</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="4">Axsys Technologies</FONT></FONT></b></td>
  </tr>
  <tr>
    <td><hr size="1" noshade></td>
  </tr>
  <tr>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">(Name
      of Registrant as Specified In Its Charter)</font></td>
  </tr>
  <tr>
    <td><br> <br> </td>
  </tr>
  <tr>
    <td><hr size="1"></td>
  </tr>
  <tr>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">
      (Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%"  border="0" cellspacing="3" cellpadding="0">
  <tr valign="top">
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">Payment
      of Filing Fee (Check the appropriate box):</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><FONT size="3" face="wingdings">&#254;</FONT></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">No fee
      required.</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">Fee computed
      on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td width="3%"><font size="2" face="Times New Roman, Times, serif">(1)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Title of each class
      of securities to which transaction applies:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(2)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Aggregate number
      of securities to which transaction applies:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(3)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Per unit price or
      other underlying value of transaction computed pursuant to Exchange Act
      Rule 0-11 (set forth the amount on which the filing fee is calculated and
      state how it was determined):</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(4)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Proposed maximum
      aggregate value of transaction:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(5)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Total fee paid:</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">Fee paid
      previously with preliminary materials.</font></td>
  </tr>
  <tr valign="top">
    <td><FONT size="3" face="wingdings">&#111;</FONT></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">Check
      box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)
      and identify the filing for which the offsetting fee was paid previously.
      Identify the previous filing by registration statement number, or the Form
      or Schedule and the date of its filing.</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(1)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Amount Previously
      Paid:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade> </td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(2)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Form, Schedule or
      Registration Statement No.:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(3) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Filing Party:</font></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">(4)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Date Filed:</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><br> <hr size="1" noshade></td>
  </tr>
</table>
<p>&nbsp;</p><hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<p align="right"><img src="logo.gif" width="191" height="83"></p>
<p align="right">&nbsp;</p>
<p align="right"><font size="2" face="Times New Roman, Times, serif">March 24,
  2004 </font></p>
<p><font size="2" face="Times New Roman, Times, serif">Dear Axsys Technologies
  Stockholder: </font></p>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">On
behalf of the Board of Directors and management, I cordially invite you to
attend the Annual Meeting of Stockholders on May 11, 2004,
at 10:00 a.m., at the Hartford Marriott Rocky Hill at Corporate Ridge, 100
Capital Boulevard, Rocky Hill, Connecticut.</FONT></FONT> </P>



<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
accompanying Notice of Annual Meeting and Proxy Statement describes the
proposals to be considered at the meeting.</FONT></FONT> </P>


<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Whether
  you plan to attend the meeting or not, it is important that your shares are
  represented. Therefore, you are urged to complete, sign, date and return the
  enclosed proxy card, or to vote via either the Internet or telephone, promptly
  in accordance with the instructions set forth on the card. This will ensure
  your proper representation at the Annual Meeting.</FONT></FONT> </P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">Very truly
      yours, </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><img src="sig.gif" width="121" height="111"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT size="2" FACE="Times New Roman, Times, serif">Stephen W. Bershad<br>
      Chairman of the Board<br>
      Chief Executive Officer</FONT></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="center"><font size="2" face="Times New Roman, Times, serif"> <font size="1">AXSYS
  TECHNOLOGIES, INC. 175 CAPITAL BOULEVARD SUITE 103 ROCKY HILL, CT 06067 </font></font></P>
<P ALIGN="CENTER"><FONT size="1" FACE="Times New Roman, Times, Serif">860.257.0200
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX 860.594.5750&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;web:
  www.axsys.com</FONT></P>
<p>&nbsp;</p><hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>








<P ALIGN="CENTER"><img src="logo.gif" width="191" height="83"></P>

<CENTER><hr size="1" noshade>
  <FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">NOTICE OF ANNUAL MEETING
  OF STOCKHOLDERS</FONT></FONT>
  <hr size="1" noshade></CENTER>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">To
  Be Held<br>
  Tuesday, May 11, 2004<br>
  10:00 A.M.</FONT></FONT></b></P>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2" face="Times New Roman, Times, serif">The
  Annual Meeting of Stockholders of Axsys Technologies, Inc. (&#147;Axsys&#148; or the &#147;Company&#148;)
  will be held on May 11, 2004 at 10:00 a.m., at the Hartford Marriott Rocky Hill
  at Corporate Ridge, 100 Capital Boulevard, Rocky Hill, Connecticut, for the
  following purposes: </font></p>
<ol>
  <font size="2" face="Times New Roman, Times, serif">
  <li><font size="2" face="Times New Roman, Times, serif">To elect five directors
    to the Board of Directors; <br>
    <br>
    </font> </li>
  <li><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="2">To
    ratify the selection of Ernst &amp; Young LLP as independent accountants of
    the Company for the fiscal year ending December 31, 2004; and<br>
    <br>
    </FONT></FONT> </li>
  <li><FONT FACE="Times New Roman, Times, serif"><FONT SIZE="2">To
    transact such other business as may properly come before the meeting or any
    adjournment thereof.</FONT></FONT> </li>
  </font>
</ol>
<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Only
  stockholders of record of Axsys&#146; Common Stock, par value $.01 per share,
  at the close of business on March 15, 2004 are entitled
  to notice of and to vote at the meeting and any adjournments thereof. A list
  of such stockholders will be open for examination by any stockholder for any
  purpose germane to the meeting, during ordinary business hours, for ten days
  prior to the meeting at the offices of Axsys Technologies, Inc. in Rocky Hill,
  Connecticut.</FONT></FONT> </P>



<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Whether
  or not you expect to attend the meeting, it is important that your shares be
  represented, regardless of the number of shares you hold. Accordingly, you are
  encouraged to sign, date and return the enclosed proxy card in the reply envelope
  provided, or to vote via either the Internet or telephone, promptly in accordance
  with the instructions set forth on the card, as soon as possible.</FONT></FONT>
</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">By Order of the Board of Directors,</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><img src="sig2.gif" width="155" height="53"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">David A. Almeida<br>
      Secretary</FONT></FONT></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>

<table width="100%"  border="1" cellspacing="0" cellpadding="10">
  <tr>
    <td><P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">-IMPORTANT-</FONT></FONT></b></P>
      <P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>STOCKHOLDERS
        ARE REQUESTED TO COMPLETE, DATE AND SIGN THE ENCLOSED PROXY CARD AND RETURN
        IT PROMPTLY IN THE ENCLOSED ENVELOPE WHICH HAS BEEN PROVIDED FOR YOUR
        CONVENIENCE AND WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.
        THE PROMPT RETURN OF PROXY CARDS WILL ENSURE A QUORUM. ANY STOCKHOLDER
        PRESENT AT THE ANNUAL MEETING MAY REVOKE HIS OR HER PROXY AND VOTE PERSONALLY
        ON ALL MATTERS BROUGHT BEFORE THE ANNUAL MEETING.</B></FONT></FONT> </P>
      <P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">THANK
        YOU FOR ACTING PROMPTLY.</FONT></FONT></b></P>










</td>
  </tr>
</table>
<p>&nbsp;</p><hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>


<div align="right"><img src="logo.gif" width="191" height="83"> </div>
<hr size="1" noshade>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">PROXY
  STATEMENT</FONT></FONT></b></P>
<hr size="1" noshade>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">INFORMATION
  ABOUT THE ANNUAL MEETING</FONT></FONT></b></P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Why
  Am I Receiving These Proxy Materials?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Board of Directors (the &#147;Board&#148;) of Axsys Technologies, Inc.
(&#147;Axsys&#148; or the &#147;Company&#148;) is soliciting proxies to be voted
at the 2004 Annual Meeting of Stockholders. This proxy statement includes
information about the issues to be voted on at the meeting.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">On
March 24, 2004, we began mailing these proxy materials to all stockholders of
record at the close of business on March 15, 2004, the record date for the 2004
Annual Meeting. As of the record date, there were 4,659,465 shares of Axsys
common stock outstanding. Each share is entitled to one vote on each matter
properly brought before the Annual Meeting.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">As
required by Delaware law, a list of stockholders entitled to vote at the Annual
Meeting will be available during the 2004 Annual Meeting, and for ten days prior
to the meeting, during ordinary business hours at Axsys&#146; corporate
headquarters located at 175 Capital Boulevard, Suite 103, Rocky Hill,
Connecticut 06067.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">How
  Many Votes Do I Have?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">You
may vote all shares of Axsys common stock that you owned at the close of
business on March 15, 2004, the record date. These shares include:</FONT></FONT> </P>


<ul>
  <li><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Shares
    held directly in your name as the &#147;stockholder of record&#148; (subject
    to any instruction you may receive from the beneficial owner if you hold shares
    as a nominee);</FONT></FONT> </li>
  <li><font size="2" face="Times New Roman, Times, serif">Shares held for you
    as the beneficial owner through a broker, bank, or other nominee in &#147;street
    name&#148;; and </font></li>
  <li><font size="2" face="Times New Roman, Times, serif">Shares credited to your
    account in the Axsys Technologies, Inc. 401(k) Retirement Plan. </font> </li>
</ul>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If
  I Am A Stockholder Of Record, How Can I Vote My Shares?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">You
can vote by proxy or in person.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">How
  Do I Vote By Proxy?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you are
a stockholder of record, you may vote your proxy by either:</FONT></FONT> </P>

<ul>
  <li><font size="2" face="Times New Roman, Times, serif">Mail; </font></li>
  <li><FONT size="2" FACE="Times New Roman, Times, serif">Internet;
    or</FONT></li>
  <li><font size="2" face="Times New Roman, Times, serif">Telephone.</font> </li>
</ul>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you
prefer voting by mail, simply mark your proxy card, date and sign it, and return
it to Mellon Investor Services in the postage-paid envelope provided. If you
vote by mail, the persons named on the card (your &#147;proxies&#148;) will vote
your shares in the manner you indicate. You may specify whether your shares
should be voted for all or some of the nominees for director or whether you
withhold authority to vote for all directors. If you vote by mail, sign your
proxy card, and you do not indicate specific choices, your shares will be voted
&#147;FOR&#148; the election of all five nominees for director.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Instead
  of submitting proxies by mail on the enclosed proxy card, stockholders have
  the option to submit their proxies or voting instructions electronically through
  the Internet or by telephone. Please note that there may be </FONT></FONT></P>

<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 1</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">separate
  arrangements for using the Internet or telephone depending on whether your shares
  are registered in the Company&#146;s stock records in your name or in the name
  of a brokerage firm or bank. Stockholders should check their proxy card or voting
  instructions forwarded by their broker, bank or other holder of record to see
  which options are available.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Internet and telephone procedures described below for submitting your proxy are
designed to authenticate stockholders&#146; identities, to allow stockholders to
have their shares voted and to confirm that their instructions have been
properly recorded. Stockholders submitting proxies or voting instructions via
the Internet should understand that there may be costs associated with
electronic access, such as usage charges from the Internet access providers and
telephone companies, that would be borne by the stockholder.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholders
of record who wish to vote via the Internet or telephone may submit their
proxies:</FONT></FONT> </P>

<ul>
  <li><font size="2" face="Times New Roman, Times, serif">Through the Internet
    by visiting a website established for that purposed at http://www.eproxy.com/axysco;
    or </font> </li>
  <li><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">By
    telephone by calling the toll-free number 1-800-435-6710 and following the
    recorded instructions.</FONT></FONT> </li>
</ul>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If any
other matter is presented, your proxies will vote in accordance with their best
judgment. At the time this proxy statement went to press, we knew of no matters
that needed to be acted on at the Annual Meeting other than those discussed in
this proxy statement.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">May
  I Revoke My Proxy?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you give
a proxy, you may revoke it any one of three ways:</FONT></FONT> </P>

<ul>
  <li><font size="2" face="Times New Roman, Times, serif">Submit a valid later-dated
    proxy; </font></li>
  <li><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Notify
    Axsys&#146; secretary in writing before the Annual Meeting that you have revoked
    your proxy; or</FONT></FONT> </li>
  <li><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Vote
    in person at the Annual Meeting.</FONT></FONT> </li>
</ul>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">How
  Do I Vote In Person?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you are
a stockholder of record, you may cast your vote in person at the Annual Meeting.
If you plan to vote in person, please see &#147;How Can I Gain Admittance To The
Annual Meeting&#148; below.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If
  I Hold Shares In Street Name, How Can I Vote My Shares?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">You
can submit voting instructions to your broker or nominee. In most instances, you
will be able to do this over the telephone or by mail. Please refer to the
voting instruction form included in these materials by your broker or nominee.</FONT></FONT> </P>


<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>How
  Do I Vote My Axsys Common Stock Held In The Axsys 401(k) Plan?</B></FONT></FONT>
</P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you
are a participant in the Axsys 401(k) Plan (the &#147;Plan&#148;) and hold
shares of Axsys common stock within the Plan, you will receive a proxy card that
covers shares credited to your Plan account. This proxy card serves as a voting
instruction for the trustee of the Plan in which you are a participant. If you
do not return this proxy card to the Plan trustee, the trustee will vote your
shares in the same proportion as the shares that are voted by the other
participants in the plan. The trustee will also vote unallocated shares of Axsys
common stock held in the Plan in direct proportion to the voting of allocated
shares in the Plan for which voting instructions have been received unless doing
so would be inconsistent with the trustee&#146;s duties.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">What
  Constitutes A Quorum?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">A
majority of the outstanding shares, present or represented by proxy, constitutes
a quorum for the conduct of business at the Annual Meeting.</FONT></FONT> </P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 2</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>

<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">What
  Vote Is Required To Approve The Election of Directors<br>
  And The Ratification Of The Selection of Ernst &amp; Young?</FONT></FONT></b></P>


<table width="100%"  border="0" cellspacing="0" cellpadding="10">
  <tr valign="top">
    <td width="25%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Election
      of Five Directors</FONT></FONT></td>
    <td><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The affirmative
      vote of a majority of the votes cast by stockholders entitled to vote, present
      in person or by proxy, at the Annual Meeting, is required to elect each
      Director.</FONT></FONT> </td>
  </tr>
  <tr valign="top">
    <td><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Ratify the Selection
      of Ernst &amp; Young LLP</FONT></FONT></td>
    <td><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The affirmative
      vote of a majority of the votes cast by stockholders entitled to vote, present
      in person or by proxy, at the Annual Meeting, is required to ratify the
      selection of Ernst &amp; Young LLP as the Company&#146;s independent accountants
      for the fiscal year ending December 31, 2004.</FONT></FONT> </td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">With
respect to the election of directors, the selection of Ernst &amp; Young LLP and
any other ordinary business properly coming before the Annual Meeting,
abstentions, if any, will not be counted for purposes of determining the number
of votes cast and will have no effect on the outcome of the voting. These
shares, will however, be counted for purposes of determining a quorum. Should a
broker non-vote exist with respect to any matter, it would be treated in the
same manner as an abstention. Broker non-votes occur when brokers do not have
discretionary voting authority on certain proposals under the rules of the
Nasdaq National Market and the beneficial owner has not instructed the broker
how to vote on these proposals.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Who
  Bears The Costs Of Soliciting These Proxies?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
is paying the cost of preparing, printing and mailing these proxy materials.
Proxies are being solicited principally by mail; but proxies may also be
solicited personally, by telephone or similar means by directors, officers and
regular employees of Axsys without additional compensation. We will reimburse
brokerage firms and others for their expenses in forwarding proxy solicitation
materials to the beneficial owners of common stock.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">How
  Can I Gain Admittance To The Annual Meeting?</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If you are
a stockholder of record or a participant in the Axsys Technologies, Inc. 401(K)
Retirement Plan, you need to bring a form of personal photo identification with
you in order to be admitted to the Annual Meeting. If you want to attend the
Annual Meeting and you do not hold shares in your name but hold them through a
bank, broker or other holder of record, you will need to present a letter from
the holder of record that confirms your ownership of those shares and a form of
personal photo identification in order to be admitted to the Annual Meeting. We
reserve the right to refuse admittance to anyone without proper proof of share
ownership and proper photo identification.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholder
  Communications With The Board</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholders
may submit comments or complaints regarding accounting, internal controls or
auditing matters to the Audit Committee through our website, www.axsys.com. Upon
receipt of a complaint or concern, our Director of Tax and Internal Audit will
determine whether the complaint actually pertains to accounting matters and will
notify the Audit Committee and forward the communication, when appropriate.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Comments
regarding other matters may be communicated to the Board using the same process.
Upon receipt of a communication not related to accounting, internal controls or
auditing matters, the Director of Tax and Internal Audit will determine whether
the communication deals with the functions or responsibilities of the Board or a
committee thereof and, when appropriate, will notify the Board or committee and
forward the communication.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Although
the Company does not maintain a policy requiring directors to attend annual
meetings of stockholders, they are invited and encouraged to do so. To
facilitate their attendance, a meeting of the Board is typically scheduled on
the same day and near the location of each regularly-scheduled meeting of
stockholders. All of our five current directors attended the Company&#146;s 2003
Annual Meeting of Stockholders.</FONT></FONT> </P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 3</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>





<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">NOMINATION
  AND ELECTION OF DIRECTORS<br>
  (Proposal No. 1)</FONT></FONT></b></P>
<font size="2" face="Times New Roman, Times, serif"> Axsys&#146; By-Laws provide for a Board
of Directors of not less than two nor more than twelve directors, as determined
from time to time by resolution of the Board. The current members of the Board,
whose terms expire at the Annual Meeting, are Stephen W. Bershad, Anthony J. Fiorelli,
Jr., Eliot M. Fried, Richard F. Hamm, Jr. and Robert G. Stevens, all of whom are
nominees. </font>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">As
previously noted, proxies will be voted, unless authority is withheld, FOR the
election as directors of the five nominees to serve until the next annual
meeting of stockholders and until their respective successors shall have been
duly elected and qualified. If any nominee should become unavailable for
election, proxies will be voted, unless authority is withheld, for an alternate
or alternates, if any, designated by the Board. The Board has no reason to
believe that any nominee will become unavailable for election.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
following table lists the name of each nominee for director, his age at March
15, 2004 and the period during which he has served as a director.</FONT></FONT> </P>

<TABLE WIDTH="60%" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><b><font size="1" face="Times New Roman, Times, serif"><u>Name</u></font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif"><u>Age</u></font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Director<br>
      <u>Since</u> <br>
      </font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD WIDTH="66%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="7%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="4%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62</FONT></TD>
    <TD WIDTH="8%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1986</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Anthony
      J. Fiorelli, Jr</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">73</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1986</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Eliot
      M. Fried</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">71</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1994</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Richard
      F. Hamm, Jr</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">44</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Robert
      G. Stevens</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">50</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2003</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
</TABLE>

<p><font size="2" face="Times New Roman, Times, serif">Mr. Bershad has been Chairman
  of the Board and Chief Executive Officer of Axsys since 1986 and was President
  of Axsys from 1986 to August 1999 and from March 2002 to the present. Prior
  thereto, he was a Managing Director of Lehman Brothers, Inc. and its predecessor
  firms, where he held a series of senior management positions in merchant banking
  and mergers and acquisitions. Mr. Bershad is a director of EMCOR Group, Inc.,
  an electrical and mechanical construction and facilities services company. </font></p>
<p><font size="2" face="Times New Roman, Times, serif">Mr. Fiorelli, Jr. has been
  a private investor since January 1, 1997. From December 1985 until June 1997,
  he was President of Strategic Management Consulting Services, Inc., which is
  a management-consulting firm. Prior to that time, Mr. Fiorelli was President
  and Chief Executive Officer of General Defense Corporation, a diversified engineering
  and manufacturing company. Mr. Fiorelli also serves Chairman of the Board of
  the United States Merchant Marine Academy Alumni Foundation. </font></p>
<p><font size="2" face="Times New Roman, Times, serif">For more than five years
  prior to his retirement in February 2000, Mr. Fried was a Managing Director
  - Corporate Finance at Lehman Brothers, Inc. Mr. Fried is a director of Blount
  International, Inc., a manufacturer of industrial equipment products, and a
  director of Grant Prideco Inc., an oil field products company. </font></p>
<p><font size="2" face="Times New Roman, Times, serif">Since April 2002, Mr. Hamm has been
  the Vice President and Deputy General Counsel of Medtronic, Inc., which is a
  leading medical technology company. Prior to that time, Mr. Hamm was the Vice
  President - Corporate Development and Planning at Carlson Companies, Inc., a
  travel, hospitality and marketing company, for three years. For more than five
  years prior thereto, he was Senior Vice President - Legal and Business Development
  and Vice President and General Counsel at Tropicana Products, Inc., a leading
  producer of branded juice products. Mr. Hamm is a director of EMCOR Group, Inc.,
  an electrical and mechanical construction and facilities services company. </font></p>

<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 4</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<p><font size="2" face="Times New Roman, Times, serif">Since 2002, Mr. Stevens has been
  President of Growth Insight, Inc., a strategic planning practice, which helps
  corporate and non-profit clients develop and improve customer-centric business
  models. Prior to that time, Mr. Stevens had been the Executive Vice President
  of Bluefly, Inc., a publicly traded internet retailer of off-price fashion merchandise,
  for three years. From 1992 until 1999, Mr. Stevens served as Vice President
  and Partner of Mercer Management Consulting, Inc., the management-consulting
  arm of Marsh &amp; McLennan, Inc. Mr. Stevens serves as a Director of Bluefly, Inc.
  and as Vice Chairman of the Board of Trustees of the Shambhala Center of New
  York. </font></p>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
  Board of Directors and Committees</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Board of Directors is responsible for the management and direction of Axsys and
for establishing broad corporate policies. There are no family relationships
among any of the directors and executive officers of Axsys. The Board of
Directors met five times during 2003 and acted four times by Unanimous Written
Consent. The Board of Directors has standing Audit, Compensation, and Nominating
and Corporate Governance Committees.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Consistent
with the Audit Committee structure and membership requirements of the Nasdaq
National Market, the Audit Committee is comprised of Messrs. Fiorelli, Fried and
Stevens. The members of the Audit Committee are independent directors under the
Nasdaq requirements. As provided in its charter, the Audit Committee is
responsible for assisting the Board in fulfilling its oversight responsibilities
by reviewing the following: Axsys&#146; financial information that is provided
to stockholders and others, the systems of internal controls, which management
and the Board have established, and the audit process. The Audit Committee met
six times in 2003. The Board has determined that all members of the Audit
Committee are independent directors under the Nasdaq Stock Market rules and each
of them is able to read and understand fundamental financial statements. In
addition, Mr. Fiorelli is considered to be a financial expert, as that term is
defined by the Securities and Exchange Commission and the requirements of
Sarbanes-Oxley Act of 2002.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Compensation Committee is currently comprised of Messrs. Fiorelli,
Fried and Hamm, all of whom are independent under the rules of
the Nasdaq Stock Market. The Compensation Committee oversees compensation
policies of Axsys. The Compensation Committee met once in 2003 and acted three
times by Unanimous Written Consent. The Board of Directors has approved a
written charter for the Compensation Committee.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Nominating and Corporate Governance (&#147;NCG&#148;) Committee was comprised of
Messrs. Bershad, Fiorelli and Hamm until March 4, 2004 when Mr. Bershad resigned
from the NCG Committee. The nominees identified in this proxy statement were
recommended by the two remaining members of the NCG Committee. The NCG Committee
operates under a charter that was approved by the Board and revised in March of
2004. The NCG Charter is attached as Exhibit B and is posted on our website,
www.axsys.com. The NCG Committee selects candidates for the office of director
of Axsys and recommends to the full Board the names of persons (a) to be
presented to the stockholders for election as directors and (b) to fill
vacancies in the Board of Directors that may exist or be created by reason of
death, resignation, removal or otherwise, including by reason of an increase in
the number of directors. The Nominating and Governance Committee acted once by
Unanimous Written Consent during 2003.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Non-Officer Grant Committee was comprised of Mr. Bershad. This committee was
dissolved on March 4, 2004. Until that date it administered and made awards
under Axsys&#146; Stock Incentive Plan to non-officer employees. The Non-Officer
Grant Committee acted twice by Unanimous Written Consent during 2003.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Director
  Nominations</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">As provided
  in its charter, the NCG Committee will consider recommendations of nominations
  submitted by stockholders. When the NCG Committee reviews a potential new candidate,
  the Committee looks specifically at the candidate&#146;s qualifications in light
  of the needs of the Board and the Company at that time given the then current
  mix of directors. The NCG Committee has not established specific, minimum qualifications
  that must be met by a nominee. Instead, the Committee assesses each candidate
  individually. The assessment will include a </FONT></FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 5</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">review
  of the candidate&#146;s judgment, experience, understanding of the Company&#146;s
  or other related industries, and such other factors as the NCG Committee concludes
  are pertinent in light of the current needs of the Board. The Board believes
  that its membership should reflect a diversity of experience, gender, race,
  ethnicity and age. The NCG Committee applies the same criteria to evaluate all
  candidates, including those recommended by stockholders.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Company also strives to have all directors, other than the Chief Executive
Officer, be independent in accordance with the Nasdaq Stock Market&#146;s
definition of independent. In addition, the Committee must also ensure that the
members of the Board, as a group, maintain the requisite qualifications under
the Nasdaq Stock Market&#146;s listing standards for membership on the Audit,
Compensation and Nominating and Corporate Governance Committees.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholders
who wish to suggest candidates to the Nominating and Corporate Governance
Committee for consideration as directors may submit names and biographical data
in writing to the Secretary of Axsys at Axsys Technologies, Inc., 175 Capital
Boulevard, Suite 103, Rocky Hill, Connecticut 06067.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">For a
stockholder to nominate a director at an Annual Meeting, notice of the
nomination generally must be received by Axsys not less than 60 nor more than 90
days in advance of the meeting. It is presently anticipated that next
year&#146;s annual meeting will be held on May 3, 2005 and, accordingly, notice
of any stockholder nomination for next year&#146;s meeting submitted to Axsys on
or between February 2, 2005 and March 4, 2005 will be considered filed on a
timely basis. The notice must describe all information relating to the nominee
that is required to be disclosed pursuant to Regulation 14A under the Securities
Exchange Act of 1934, including name, age, business and residence address,
occupation, shares held and such person&#146;s written consent to being named in
the proxy statement as a nominee and to serving as a director if elected.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Mr.
Bershad&#146;s employment agreement provides that he will serve as Chairman of
the Board during his tenure as Chief Executive Officer and for a period of five
years thereafter (subject to earlier termination upon certain events).</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Director
  Compensation</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">All
directors or committee members, as applicable, attended all meetings of the
Board and of the Committees held during 2003. The Board of Directors determines
the compensation of non-employee Directors. Non-employee directors of Axsys
receive an annual retainer fee of $18,000 plus meeting fees of $1,000 for each
Board meeting attended and $500 for each committee meeting attended other than
in connection with a Board meeting. Directors who are employees of Axsys or any
subsidiary do not receive fees or other compensation for their services as
directors. All directors are reimbursed for travel and other expenses incurred
in the performance of their duties.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Non-employee
directors may be granted options to purchase Common Stock from time to time for
their services as directors. On May 13, 2003, each of Messrs. Fried, Fiorelli
and Hamm were granted options to purchase 3,133 shares of Common Stock at an
exercise price of $9.580 per share with an expiration date of May 13, 2013.
These options vest at the rate of 20% per year commencing on the first
anniversary of the date of grant. The Stock Incentive Plan provides that upon a
director&#146;s initial election to the Board, a non-employee director will be
granted an option to purchase that number of shares of Common Stock, which on
the date of grant have a Fair Market Value (as defined in the Stock Incentive
Plan) equal to $60,000. On May 13, 2003, Mr. Stevens was granted options to
purchase 6,263 shares of Common Stock at an exercise price of $9.580 per share
with an expiration date of May 13, 2013. These options vest at the rate of 20%
per year commencing on the first anniversary of the date of grant.</FONT></FONT> </P>


<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>The
  Board of Directors recommends a vote FOR the election as directors of all of
  the nominees.</B></FONT></FONT> </P>


<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 6</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>



<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Executive
  Officers</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
following table lists the name of each current executive officer of Axsys, his
age at March 15, 2004, and his current position with Axsys.</FONT></FONT> </P>
<TABLE WIDTH="80%" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><u><b><font size="1" face="Times New Roman, Times, serif">Name</font></b></u></TD>
    <TD ALIGN="LEFT"><u></u></TD>
    <TD ALIGN="LEFT"><u></u></TD>
    <TD ALIGN="RIGHT"><u></u></TD>
    <TD ALIGN="RIGHT"><u><b><font size="1" face="Times New Roman, Times, serif">Age</font></b></u></TD>
    <TD ALIGN="LEFT"><u></u></TD>
    <TD ALIGN="LEFT"><u><b><font size="1" face="Times New Roman, Times, serif">Position</font></b></u></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief
      Executive Officer and President</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David
      A. Almeida</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">43</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice
      President, Chief Financial Officer, Secretary and Treasurer</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kenneth
      F. Stern</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">43</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice
      President, Strategic Planning and Corporate Development</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
</TABLE>
<p><font size="2" face="Times New Roman, Times, serif">Mr. Bershad has been Chairman of
  the Board and Chief Executive Officer of Axsys since 1986 and was President
  of Axsys from 1986 to August 1999 and from March 2002 to the present. Prior
  thereto, he was a Managing Director of Lehman Brothers, Inc. and its predecessor
  firms, where he held a series of senior management positions in merchant banking
  and mergers and acquisitions. Mr. Bershad is a director of EMCOR Group, Inc.,
  an electrical and mechanical construction and facilities services company. </font></p>
<p><font size="2" face="Times New Roman, Times, serif">Mr. Almeida joined Axsys in November
  2001 as Vice President, Chief Financial Officer, Secretary and Treasurer with
  nearly twenty years of finance and administrative experience with high-technology
  companies. Most recently, Mr. Almeida was Vice President - Finance with ADC
  Telecommunications, Inc., Broadband, Access and Transport Group. Mr. Almeida
  spent eight years with ADC in a variety of executive positions managing finance,
  human resources, information technology and customer service organizations through
  complex financial and business issues in a variety of ADC businesses. </font></p>
<p><font size="2" face="Times New Roman, Times, serif">Mr. Stern has been Vice President,
  Strategic Planning and Corporate Development of Axsys since October 1994. From
  December 1992 to October 1994, Mr. Stern was a management consultant specializing
  in strategic planning and corporate development for technology companies at
  Monitor Company. </font></p>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">All of
the executive officers serve at the pleasure of the Board of Directors.
Severance agreements have been entered into with all of the executive officers.
See the discussion under &#147;Agreements with Directors and Officers&#148;.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">BENEFICIAL
  STOCK OWNERSHIP</FONT></FONT></b></P>


<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
following table sets forth certain information as of March 15, 2004 concerning
beneficial ownership of Common Stock of Axsys by (i) each director, (ii) each of
the executive officers named in the compensation table below and (iii) all
executive officers and directors as a group. Included in share ownership are
shares that may be acquired upon the exercise of options that are exercisable as
of March 15, 2004 or become exercisable on or before May 14, 2004. All persons
have sole voting and investment power except as otherwise indicated.</FONT></FONT> </P>
<TABLE WIDTH="80%" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="5" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Shares
      of Common Stock <br>
      Beneficially Owned<sup>(1)</sup></font></b></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="5" ALIGN="center"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><b><font size="1" face="Times New Roman, Times, serif">Name</font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Number</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Percent</font></b></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad (2)(3)</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,282,818</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27.4</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kenneth
      F. Stern (4)</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">61,175</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.3</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David
      A. Almeida (3)(5)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">22,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Anthony
      J. Fiorelli, Jr. (6)</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24,407</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Eliot
      M. Fried (7)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14,022</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Richard
      F. Hamm, Jr. (8)</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4,269</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Robert
      G. Stevens (9)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,252</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All executive
      officers and directors as a group (7 persons)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,409,943</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29.4</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
</TABLE>
<br>
<hr align="left" width="100" size="1" noshade>
<font size="2" face="Times New Roman, Times, serif">* Less than 1%.</font>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 7</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(1)</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Calculated in accordance
      with Rule 13d-3 under the Securities Exchange Act of 1934. </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(2)</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Includes 23,500 shares of Common Stock underlying options that are exercisable
        as of March 15, 2004 or within 60 days after such date. Mr. Bershad owns
        663,143 shares of Common Stock directly, 5,411 shares through the Axsys
        Technologies, Inc. 401(k) Retirement Plan and 590,764 shares of Common
        Stock indirectly through SWB Holding Corporation, of which he is the sole
        shareholder and chairman. Mr. Bershad&#146;s address is c/o Axsys, 175
        Capital Boulevard, Suite 103, Rocky Hill, CT 06067.</FONT></FONT> </P></TD>
  </TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(3)</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Stephen W. Bershad and David A. Almeida, who are executive officers of
        Axsys, are the sole trustees of the 401(k) Plan and may be deemed to beneficially
        own shares of Common Stock held by the 401(k) Plan. Except to the extent
        of their individual interests therein, each of Messrs. Bershad and Almeida
        disclaims beneficial ownership of such 401(k) Plan shares.</FONT></FONT>
      </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(4)</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"><br>
      Includes 51,600 shares of Common Stock underlying options that are exercisable
      as of March 15, 2004, or within 60 days after such date, 1,575 shares representing
      his interest in the Axsys Technologies, Inc. 401(k) Retirement Plan and
      8,000 shares of common stock owned directly. Excludes </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(5)</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Represents 22,000 shares of Common Stock underlying options, which are
        exercisable as of March 15, 2004, or within 60 days after such date.</FONT></FONT>
      </P></TD>
  </TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(6)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Includes 14,022 shares of Common Stock underlying options that are exercisable
as of March 15, 2004, or within 60 days after such date and 10,385 shares of
common stock owned directly.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(7)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Represents 14,022 shares of Common Stock underlying options that are exercisable
as of March 15, 2004, or within 60 days after such date.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(8)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Represents 4,269 shares of Common Stock underlying options that are exercisable
as of March 15, 2004, or within 60 days after such date.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(9)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Represents 1,252 shares of Common Stock underlying options that are exercisable
as of March 15, 2004, or within 60 days after such date.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 8</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>






<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">PRINCIPAL
  STOCKHOLDERS</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
knows of no person who, as of March 15, 2004, beneficially owned, within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934, more than five
percent of the Common Stock outstanding, except for Mr. Bershad and except as
set forth below.</FONT></FONT> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="90%">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><b><font size="1" face="Times New Roman, Times, serif">Name
      and Address of Beneficial Owner </font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Number
      of Shares </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Percent
      of Class</font></b></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Albert
      Fried &amp; Company, LLC (1)</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60 Broad
      Street, 39th Floor</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New York,
      NY 10004</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">522,280</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD width="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11.2</FONT></TD>
    <TD width="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kern
      Capital Management, LLC (2)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">114
      West 47th Street, Suite 1926</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New York,
      NY 10036</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">433,800</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.3</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kennedy
      Capital Management, Inc. (3)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10829
      Olive Boulevard</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Saint
      Louis, MO 63141</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">287,161</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.2</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dimensional
      Fund Advisors, Inc. (4)</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1299
      Ocean Avenue, 11th Floor</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Santa
      Monica, CA 90401</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">252,500</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.4</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
  </TR>
</TABLE>


<br>
<hr align="left" width="100" size="1" noshade>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(1)</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> According to a Schedule
      13G filed by Albert Fried &amp; Company, LLC (&#147;AFC&#148;) on February 17, 2004. AFC
      has sole voting and dispositive power with respect to 475,143 of these shares
      in its capacity as a broker dealer. Albert Fried, Jr. is the managing member
      of AFC, and disclaims beneficial ownership over the shares beneficially
      owned by AFC. Includes 47,137 shares with respect to which Albert Fried,
      Jr., in his individual capacity, has sole voting and dispositive power.
      </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(2)</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        According to a Schedule 13G filed on January 9, 2004 by Kern Capital Management,
        LLC (&#147;Kern&#148;) and its managing members. Kern has sole voting
        and dispositive power with respect to these shares in its capacity as
        an investment adviser. Kern&#146;s managing members disclaim beneficial
        ownership of these shares.</FONT></FONT> </P></TD>
  </TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(3)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
According to a Schedule 13G filed by Kennedy Capital Management, Inc.
(&#147;Kennedy&#148;) on February 13, 2004. Kennedy, in its capacity as an
investment adviser, has sole dispositive power with respect to all of these
shares and has sole voting power with respect to 246,961 of these shares.
Kennedy has no voting power with respect to the other 40,200 shares beneficially
owned by it.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(4)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
According to a Schedule 13G filed by Dimensional Fund Advisors Inc.
(&#147;Dimensional&#148;) on February 6, 2004. Dimensional has sole voting and
dispositive power with respect to these shares in its capacity as an investment
adviser to various investment companies, commingled group trusts and separate
accounts. Dimensional disclaims beneficial ownership of these shares.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 9</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>






<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">EXECUTIVE
  COMPENSATION</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
  following table sets forth information concerning compensation during the years
  ended December 31, 2003, 2002 and 2001 for services in all capacities awarded
  to, earned by or paid to Axsys&#146; Chief Executive Officer and the two other
  executive officers of Axsys (collectively, the &#147;Named Executives&#148;):</FONT></FONT>
</P>
<P ALIGN="center"><font size="3" face="Times New Roman, Times, serif"><b>Summary
  Compensation Table</b></font></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="4" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Annual
      Compensation</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Long-Term <br>
      Compensation</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="4" ALIGN="center"><hr size="1" noshade></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><hr size="1" noshade></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Name and <br>
      Principal Position<br>
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Year</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Salary
      ($)</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Bonus
      <br>
      ($) (1)<br>
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Number of <br>
      Securities <br>
      Underlying Options<br>
      (# of Shares) (2) <br>
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      All Other<br>
      Compensation<br>
      ($) (3) <br>
      </font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD WIDTH="37%" ALIGN="LEFT"><b><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad</FONT></b></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="4%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2003</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">335,000</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">220,000</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,000</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14,405</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman
      of the Board and</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2002</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">325,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">173,566</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13,680</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief
      Executive Officer</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">315,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62,634</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>David
      A. Almeida</b> (4)</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2003</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">200,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,551</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24,995</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief
      Financial Officer</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2002</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">185,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100,374</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29,045</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice
      President &#150; Finance,</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21,346</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,756</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, serif" SIZE="2">Secretary
      and Treasurer</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>Kenneth
      F. Stern</b></FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2003</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">185,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">87,794</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23,679</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice
      President &#150; Strategic</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2002</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">177,208</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">66,566</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21,573</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Planning
      and Corporate</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">170,155</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">35,145</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14,063</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Development</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
</TABLE>

<br>
<hr align="left" width="100" size="1" noshade>
<font size="2" face="Times New Roman, Times, serif"> </font>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(1)</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Reflects payments
      under the Axsys&#146; Management Incentive Plan.</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(2)</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Reflects awards under
      the Stock Incentive Plan. </font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(3)</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Reflects: (i) matching contributions under Axsys&#146; 401(k) Plan which
        in 2003 totaled $8,000 for Mr. Bershad, $8,000 for Mr. Almeida and $8,000
        for Mr. Stern (ii) payments under Axsys&#146; executive health insurance
        plan which in 2003 totaled $5,877 for Mr. Bershad, $16,467 for Almeida
        and $15,151 for Mr. Stern; and (iii) payments of premiums for term life
        insurance maintained on behalf of the Named Executives which in 2003 totaled
        $528 for Mr. Bershad, $528 for Mr. Almeida and $528 for Mr. Stern. Axsys&#146;
        executive health insurance plan, which covers only officers and certain
        key employees, provides for the reimbursement of deductible and coinsurance
        amounts and certain medical expenses not covered under Axsys&#146; basic
        medical plans.</FONT></FONT> </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">(4)
      </font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Mr. Almeida joined
      Axsys in November 2001. His annual base salary in 2001 was $185,000. </font>
    </TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 10</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
  following table sets forth certain information regarding the options granted
  pursuant to the Stock Incentive Plan during the year ended December 31, 2003
  to the Named Executives.</FONT></FONT> </P>
<P ALIGN="center"><font size="3" face="Times New Roman, Times, serif"><b>Stock
  Options Granted in Fiscal 2003</b></font></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Number of
      Securities
      Underlying
      Options Granted
      </font></b></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Percent of Total
      Options Granted to
      Employees During
      the Year Ended
      December 31, 2003</font></b></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Exercise
      Price <br>
      ($/Share) <br>
      </font></b></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Expiration<br>
      Date <br>
      </font></b></TD>
    <TD ALIGN="center"><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Grant
      Date<br>
      Present <br>
      Value <br>
      ($) (3) <br>
      </font></b></TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="center"><hr size="1" noshade></TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="right">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,000</FONT></TD>
    <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;(1)</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.4</FONT></TD>
    <TD WIDTH="5%" ALIGN="LEFT">&nbsp;</TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.17</FONT></TD>
    <TD WIDTH="5%" ALIGN="LEFT">&nbsp;</TD>
    <TD WIDTH="9%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/04/08</FONT></TD>
    <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;</FONT></TD>
    <TD WIDTH="8%" ALIGN="right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,800</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David
      A. Almeida</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;(2)</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.7</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.43</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee">&nbsp;</TD>
    <TD ALIGN="center" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/04/13</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="right" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">57,700</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kenneth
      F. Stern</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;(2)</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.9</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.43</FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/04/13</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,850</FONT></TD>
  </TR>
</TABLE>


<br>
<hr align="left" width="100" size="1" noshade>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(1)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
These options vest at the rate of 20% per year commencing on the first
anniversary through the third anniversary and 40% on the fourth anniversary of
the date of grant. Vesting of these options will be accelerated in the event of
certain changes in control of Axsys.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(2)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
These options vest at the rate of 20% per year commencing on the first
anniversary of the date of grant. Vesting of these options will be accelerated
in the event of certain changes in control of Axsys.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(3)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
The grant date present value was estimated on the date of grant using the
Black-Scholes option pricing model with the following assumptions: expected
volatility of 67.6%; risk-free interest rate of 4.27%; expected life of 6 years
and no dividend yield. The Black-Scholes option valuation model was developed
for use in estimating the fair value of traded options, which have no vesting
restrictions and are fully transferable. In addition, the Black-Scholes model
requires the input of highly subjective assumptions including the expected stock
price volatility. Because Axsys&#146; stock-based awards to employees have
characteristics significantly different from those of traded options, and
because changes in the subjective input assumptions can materially affect the
fair value estimate, in management&#146;s opinion, the existing model does not
necessarily provide a reliable single measure of the fair value of awards
pursuant to the Stock Incentive Plan.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
  following table sets forth certain information regarding certain option exercises
  by the Named Executives in the year ended December 31, 2003. The table also
  shows information regarding unexercised stock option grants held by Named Executives
  as of December 31, 2003.</FONT></FONT> </P>
<P ALIGN="center"><font size="3" face="Times New Roman, Times, serif"><b>Aggregate
  Option Exercises in Last Fiscal Year and<br>
  Fiscal Year-End Option Values</b></font></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD rowspan="3" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Shares <br>
      Acquired <br>
      on <br>
      Exercise<br>
      (#) <br>
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD rowspan="3" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Value <br>
      Realized <br>
      on <br>
      Exercise<br>
      ($) <br>
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="10" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Fiscal
      Year-End Option Values</font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="4" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Number of Securities
      Underlying Unexercised
      Options at Fiscal Year End (#)
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="4" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Value of Unexercised
      In-the-Money Options at
      Fiscal Year End ($) (1)
      </font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><b><font size="1" face="Times New Roman, Times, serif">Name
      </font></b></TD>
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">
      Exercisable</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Un-exercisable
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Exercisable
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">Un-exercisable</font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="19" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stephen
      W. Bershad</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,100</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,400</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9,694</FONT></TD>
    <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">116,800</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David
      A. Almeida</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">65,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">41,000</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">416,100</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Kenneth
      F. Stern</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">47,200</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16,800</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26,316</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">94,384</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
</TABLE>



<p>&nbsp;</p><TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">(1)</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Includes only those options whose exercise prices are lower than $14.01 per
share, the closing price for the Common Stock on the Nasdaq National Market on
December 31, 2003. The value is based on the difference between the closing
price on December 31, 2003 and the exercise price of the option.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 11</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>



<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Terminated
  Pension Plan</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
had a defined benefit pension plan, which was terminated on July 31, 1989. The
estimated annual benefit payable upon retirement to Mr. Bershad, the only Named
Executive participating in such plan, is $22,121, assuming retirement at age 65.
Axsys will liquidate this plan in early 2004. Prior to liquidation, the
actuaries will determine the amount that Mr. Bershad will receive.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Agreements
  with Directors and Officers</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
has entered into indemnification agreements with our directors and executive
officers in order to induce them to continue to serve as directors and officers
of Axsys, indemnifying them for any and all liabilities incurred by them arising
out of their service as directors or officers, other than liabilities arising
out of conduct which has been determined in a final adjudication to constitute
bad faith or a knowing violation of law or receipt by that person of an improper
personal benefit. The rights to indemnification under the agreements are in
addition to any rights to indemnification contained in Axsys&#146; Certificate
of Incorporation or By-Laws, which provide for indemnification under certain
circumstances.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
has agreed to pay Mr. Stern up to one year&#146;s base compensation and certain
other benefits in the event of termination by Axsys other than for cause. Mr.
Almeida would receive up to six month&#146;s base compensation and certain other
benefits from Axsys in the event of termination by Axsys other than for cause.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
has entered into severance protection agreements with certain officers and key
employees of Axsys, including Stephen W. Bershad, David A. Almeida and Kenneth
F. Stern, which provide for certain benefits if their employment is terminated
within two years following a Change in Control (as defined in the agreements) of
Axsys. The purpose of the severance protection agreement is to foster the
continued employment of officers and employees by allowing them to focus
attention on their assigned responsibilities without distraction in the event of
a possible change in control of Axsys.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If a
Change in Control occurs and the executive&#146;s employment is terminated by
Axsys other than for cause, death or disability or by the executive for good
reason within two years thereafter, the executive will be entitled to receive a
maximum lump sum cash payment equal to, in the case of Messrs. Bershad, Almeida
and Stern, 2.99 times the sum of (a) the highest annual base salary paid to the
executive during the 12-month period immediately prior to the employment
termination date and (b) the average of the annual cash bonuses paid to the
executive during the three calendar years prior to the year in which the
employment termination date occurs and, at the executive&#146;s election, one
year of continuation of health care benefits or its cash equivalent. The
severance protection agreements of each of Messrs. Bershad, Almeida and Stern
also provide that the executive will be entitled to the foregoing severance
benefits in the event he terminates his employment, with or without good reason,
at any time during the one-month period commencing six months following a Change
in Control.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Each
of the severance protection agreements had an original term of up to two years
from the date of its execution and automatically renews for successive one year
periods, unless either party gives advance notice of non-renewal.
Notwithstanding the foregoing, if there is a Change in Control, the agreements
will not terminate prior to the expiration of twenty-four months after the date
of the Change in Control.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">In
October 2000, Axsys entered into an employment agreement with Stephen W.
Bershad. The agreement provided that during the initial period of the agreement,
Mr. Bershad would serve as Chairman and CEO of Axsys. The initial period of the
agreement, which originally expired on October 12, 2001, was extended until
October 12, 2002 in October 2001, October 12, 2003 in October 2002 and then
subsequently extended to October 12, 2004 in October 2003. Upon expiration of
this initial period and for five years thereafter, Mr. Bershad will serve as
Chairman of the Board.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Under
the agreement, Mr. Bershad will receive an annual salary of $335,000, subject to
increase at the discretion of the Board, which was delegated to the Compensation
Committee, and will have the opportunity to earn an annual incentive bonus based
on performance goals determined by the Board at the beginning of each fiscal
year. He is also eligible to receive awards under the Stock Incentive Plan.</FONT></FONT> </P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 12</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If Mr.
Bershad&#146;s employment is terminated by Axsys other than for cause or by Mr.
Bershad for good reason, Mr. Bershad will be entitled to the following: (1)
within ten (10) days of the employment termination date, all accrued and unpaid
base salary, accrued and unpaid bonus and vacation pay as of the employment
termination date, a pro rata portion of the highest annual bonus paid or payable
to him in respect of any of the three full fiscal years of Axsys immediately
preceding the employment termination date, all benefits accrued and unpaid under
any benefit plans, programs or arrangements in which he has been a participant
as of his termination and any reimbursable expenses incurred by him on behalf of
Axsys during the period ending on the employment termination date; (2) within
thirty (30) days following the employment termination date, a lump
sum payment equal to the greater of (x) two (2) times the sum of (i) his base
salary plus (ii) the highest annual bonus paid or payable to him for any of
Axsys&#146; three full fiscal years immediately preceding his termination and
(y) the amount of the base salary and bonus which would have been paid to him
during the employment term had it not been terminated, assuming that the highest
annual bonus paid or payable to him for any of Axsys&#146; three full fiscal
years immediately preceding his termination would have been paid to him for each
full fiscal year during the employment term; and (3) during the greater of (x)
the twenty-four (24) month period following the employment
termination date and (y) the balance of the employment term, medical,
dental, hospitalization, prescription drug, and life insurance coverages and
benefits provided to him immediately prior to termination. In addition, all
stock options held by him will become fully vested and will remain outstanding
for their entire term and all restrictions on all shares of restricted stock or
other equity based awards held by him will lapse and will become fully vested.
Mr. Bershad would also be entitled to a gross-up for any federal excise tax
incurred by him in connection with a change in control of Axsys.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">If the
employment term is terminated by reason of Mr. Bershad&#146;s death or
disability, by Axsys for cause, by Mr. Bershad without good reason, by mutual
agreement of the parties, or by expiration of the employment term, Axsys&#146;
sole obligation under the employment agreement will be to pay Mr. Bershad or his
estate, as the case may be, within thirty (30) days following the employment
termination date, all accrued and unpaid base salary, accrued and unpaid bonus
and vacation pay as of the employment termination date, a pro rata portion of
his annual bonus opportunity for the year of termination, all benefits accrued
and unpaid under any benefit plans, programs or arrangements in which he has
been a participant as of his termination and any reimbursable expenses incurred
by him on behalf of Axsys during the period ending on the employment termination
date.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">In the
event that at any time Mr. Bershad is entitled to receive payments and/or
benefits under both his employment agreement and his severance protection
agreement, he will receive the payments and/or benefits only under the severance
protection agreement.</FONT></FONT> </P>

<p><font size="2" face="Times New Roman, Times, serif">Mr. Bershad is subject to a non-competition
  covenant for two years following termination. </font></p>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Code
  of Ethics for Senior Financial Officers</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Company has adopted a Code of Ethics for Senior Financial Officers, a copy of
which can be found on Axsys&#146; website at www.axsys.com or as an exhibit to
Axsys&#146; Annual Report on Form 10-K for the fiscal year ended December 31,
2003. The Code of Ethics applies to all Senior Financial Officers of the
Company, including the Chief Executive Officer, the Chief Financial Officer, the
Treasurer and any other person performing similar functions.</FONT></FONT> </P>





<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 13</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>COMPENSATION
  COMMITTEE REPORT ON<br>
  EXECUTIVE COMPENSATION</B></FONT></FONT></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Compensation Committee of the Board of Directors (the &#147;Committee&#148;),
composed of Messrs. Fiorelli, Fried and Hamm, who are not and have never been
employees of Axsys, has furnished the following report on executive
compensation.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Compensation Committee operates under a charter approved by the Board in March
2003, which was attached as Exhibit A to our Proxy Statement for our 2003 Annual
Stockholder Meeting and is posted on our website. Under the supervision of the
Compensation Committee, Axsys has developed and implemented compensation
practices, which seek to enhance the profitability of Axsys, and thus
stockholder value, by aligning closely the financial interests of the senior
managers with those of its stockholders. In furtherance of these goals, Axsys
relies to a large degree on annual bonus and longer-term stock incentive
compensation to attract and retain executive officers and other key employees
and to motivate them to perform to the full extent of their abilities. Both
types of incentive compensation are not guaranteed and are variable and closely
tied to corporate, business unit and individual performance in a manner designed
to encourage a sharp and continuing focus on building profitability and
stockholder value. The annual bonus and stock incentive compensation is more
closely tied to Axsys&#146; success in achieving significant financial and other
performance-oriented goals. The Committee considers the total compensation
(earned or potentially available) of each of the executive officers and the
other senior managers in establishing each element of compensation. Individuals,
who are eligible for the annual bonus and stock incentive compensation,
must be employed by Axsys at the time bonus compensation is awarded.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">In
evaluating the performance and setting the incentive compensation of the Chief
Executive Officer, the Committee took note of Axsys&#146; success in exceeding
its budgeted net income before taxes, improvements in backlog, continued cost
control initiatives and Mr. Bershad&#146;s increased operational duties. As
such, the Committee granted an award of $220,000 to the Chief Executive Officer
under the Management Incentive Plan for the fiscal year ended December 31, 2003.
The Committee also increased Mr. Bershad&#146;s annual base compensation to
$350,000 effective January 1, 2004.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">In its
review of other senior management incentive compensation for 2003, the Committee
took into account management&#146;s performance against budgeted financial
goals, which was weighted between 75% and 100% of the bonus award with any
remainder based on the achievement of specific management objectives.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Committee extended the initial term of the October 2000 employment agreement
with Mr. Bershad until October 2004.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">During
each fiscal year, the Compensation Committee considers the desirability of
recommending that the Board of Directors grant senior management, including
executive officers, awards under the Stock Incentive Plan, which provides the
flexibility to grant longer-term incentives in a variety of forms, including
performance units, stock options, stock appreciation rights and restricted
stock. At December 31, 2003, options covering 461,122 shares of Common Stock had
been awarded under the Stock Incentive Plan. In 2003, the Compensation Committee
approved the grant of additional awards under the Stock Incentive Plan to Mr.
Bershad in the amount of 20,000 options, to Mr. Almeida in the amount of 10,000
options and to Mr. Stern in the amount of 5,000 options.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Committee believes that the compensation practices the Committee has
implemented and administered have contributed to focusing the senior management
of Axsys on achieving significant improvements in long-term financial
performance.</FONT></FONT> </P>




<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Section
  162(m) of the Code generally disallows a deduction to any publicly held corporation
  for compensation paid in excess of $1 million in a taxable year to its chief
  executive officer or any of the four other most highly compensated executive
  officers employed by such corporation on the last day of its taxable year. The
  Compensation Committee considers the impact of Section 162(m) on the compensation
  of its executive officers. Axsys structured and intends to administer the stock
  option, stock appreciation right and performance </FONT></FONT></P>


<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 14</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">unit
  portions of the Stock Incentive Plan with the intention that the deduction limitation
  will not apply to the executive officers&#146; compensation payable under this
  plan. The Compensation Committee intends to monitor the impact of Section 162(m)
  and consider structuring executive compensation arrangements so that the deduction
  limitation will continue not to apply.</FONT></FONT> </P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Times New Roman, Times, serif">By:</font></td>
    <td valign="top" nowrap><font size="2" face="Times New Roman, Times, serif">Compensation
      Committee: <br>
      Anthony J. Fiorelli, Jr. <br>
      Eliot M. Fried <br>
      Richard F. Hamm, Jr. </font></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<font size="2" face="Times New Roman, Times, serif"> </font>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">COMPENSATION
  COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">There
are no Compensation Committee interlocks between Axsys and any other entities
involving Axsys&#146; executive officers and directors who serve as executive
officers of such entities.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">REPORT
  OF THE AUDIT COMMITTEE</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee of the Board of Directors (the &#147;Audit Committee&#148;) has
furnished the following report:</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee is composed of Messrs. Fiorelli, Fried and Stevens, who are all
independent and financially literate. The Audit Committee operates under a
charter approved by the Board and revised in May of 2003, which is attached in
Exhibit A and is posted on our website, www.axsys.com. As more fully described
in its charter, the Audit Committee is responsible for assisting the Board in
fulfilling its oversight responsibilities by reviewing Axsys&#146; financial
information that is provided to stockholders and others, the systems of internal
controls, which management and the Board have established, and the audit
process.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee met with Ernst &amp; Young LLP (&#147;E&amp;Y&#148;),
Axsys&#146; independent accountants, and management to assure that all were
carrying out their respective responsibilities. The Audit Committee reviewed the
performance and fees of the independent accountants prior to recommending their
appointment. It also met with them to discuss the scope and results of their
audit work, including the adequacy of internal controls and the quality of
financial performance. The Audit Committee discussed with the independent public
accountants their judgments regarding the quality and acceptability of
Axsys&#146; accounting principles, the clarity of its disclosures and the degree
of aggressiveness or conservatism of its accounting principles and underlying
estimates.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee has reviewed and discussed the audited financial statements for
the fiscal year ended December 31, 2003 with Axsys&#146; management and E&amp;Y.
The Audit Committee has also discussed with E&amp;Y the matters required to be
discussed by Statement on Auditing Standards No. 61, &#147;Communication with
Audit Committees&#148;.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee has also received and reviewed the written disclosures and the
letter from E&amp;Y required by Independence Standard No. 1, &#147;Independence
Discussion with Audit Committees&#148;, and has discussed with the accountants
the auditors&#146; independence.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Based
  on the reviews and discussions referred to above, the Audit Committee recommended
  to the Board of Directors that the financial statements referred to above be
  included in Axsys&#146; Annual Report on Form 10-K for the fiscal year ended
  December 31, 2003.</FONT></FONT> </P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Times New Roman, Times, serif">By:</font></td>
    <td valign="top" nowrap><font size="2" face="Times New Roman, Times, serif">Audit
      Committee: <br>
      Anthony J. Fiorelli, Jr. </font><FONT SIZE="2"><br>
      Eliot M. Fried<font face="Times New Roman, Times, serif"> </font><br>
      Robert G. Stevens</FONT> </td>
  </tr>
</table>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 15</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">INDEPENDENT
  PUBLIC ACCOUNTANTS<br>
  (Proposal No. 2)</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Subject
to stockholder ratification, the Board of Directors, upon the recommendation of
its Audit Committee, has selected Ernst &amp; Young LLP (&#147;E&amp;Y&#148;) as
independent accountants to audit the consolidated books and accounts of the
Company for the period beginning January 1, 2004, and ending December 31, 2004.
A representative of E&amp;Y will be present at the meeting and will have the
opportunity to make a statement and to respond to appropriate questions. E&amp;Y
has been the independent accountant for the Company since 2002.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
reports by E&amp;Y on Axsys&#146; consolidated financial statements for the past
three years did not contain an adverse opinion or disclaimer of opinion, nor
were they qualified or modified as to uncertainty, audit scope or accounting
principles. E&amp;Y&#146;s report on Axsys&#146; consolidated financial
statements for 2003 was issued on an unqualified basis in conjunction with the
publication of Axsys&#146; 2003 Annual Report to Stockholders and the
filing of Axsys&#146; Annual Report on Form&nbsp;10-K.</FONT></FONT> </P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">During
the Company&#146;s three most recent fiscal years, there were no disagreements
with E&amp;Y on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedures which, if not resolved to
E&amp;Y&#146;s satisfaction, would have caused them to make reference to the
subject matter in connection with their report on Axsys&#146; consolidated
financial statements for such years; and there were no reportable events, as
listed in Item&nbsp;304(a)(1)(v) of Regulation&nbsp;S-K.</FONT></FONT> </P>



<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Fees
  Paid to Independent Accountants</FONT></FONT></b></P>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Aggregate
  fees for professional services rendered to Axsys by E&amp;Y as of or for the
  fiscal years ended December 31, 2003 and 2002 are set forth below. The aggregate
  fees included in the Audit category are fees billed for the fiscal years for
  the audit of Axsys&#146; annual financial statements and review of financial
  statements, statutory and regulatory filings. The aggregate fees include in
  each of the other categories are for fees billed in the fiscal years.</FONT></FONT>
</P>
<TABLE WIDTH="70%" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">2003</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">2002</font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="2" ALIGN="RIGHT"><hr size="1" noshade></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Audit
      Fees</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      155,000</FONT></TD>
    <TD WIDTH="7%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      350,000</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Audit-Related
      Fees</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11,500</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,500</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Tax Fees</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,400</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM" bgcolor="#eeeeee">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Other
      Fees</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31,416</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">--</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><hr size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><hr size="1" noshade></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> 200,316</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> 360,500</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
</TABLE>



<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Audit
Fees</I>: Fees for audit services totaled $155,000 in
2003, including fees associated with the 2003 annual audit
and reviews of Axsys&#146; 2003 quarterly reports on Form 10-Q.
Fees for audit services in 2002 included fees associated with the 2002 annual
audit and the re-audits of 2001 and 2000.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Audit-Related
Fees</I>: Fees for audit-related services related to the audit of the
Axsys&#146; 401(k) plan totaled $11,500 in 2003 and $10,500 in 2002.</FONT></FONT> </P>


<p><font size="2" face="Times New Roman, Times, serif"><i>Tax Fees</i>: In 2003,
  E&amp;Y provided payroll tax related services. There were no tax related services
  or other non-audit related services during 2002. </font></p>
<p><font size="2" face="Times New Roman, Times, serif"><i>All Other Fees</i>:
  E&amp;Y assisted the Company with a government contract audit performed by the Defense
  Contract Audit Agency. </font> </p>

<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 16</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Policy
  on Audit Committee Pre-Approval of Audit and<br>
  Permissible Non-Audit Services of Independent Accountant</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee pre-approves all audit and non-audit services provided by the
independent accountants prior to the engagement of the independent accountants
with respect to such services. None of the services described above was approved
by the Audit Committee under the <I>de minimus</I> exception provided by Rule
2-01(c)(7)(i)(C) under Regulation S-X.</FONT></FONT> </P>
<p align="center"><font size="2" face="Times New Roman, Times, serif"><b>The Board
  of Directors recommends a vote FOR the ratification of Ernst &amp; Young LLP
  as the <br>
  independent accountants of the Company for the indicated period. <BR>
  </b></font></p>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">STOCK
  PRICE PERFORMANCE GRAPH</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
following graph shows the value of a $100 investment in Common Stock from
December 31, 1998 through December 31, 2003, as of the dates indicated, compared
with the value of a similar investment in the Nasdaq Stock Market Index, the
Nasdaq Non-Financial Stock Index and the S&amp;P Technology Sector Index at such
times. The Nasdaq Stock Market Index is a broad market index comprising all
domestic shares traded on the Nasdaq National Market and the Nasdaq Small-Cap
Market. The Nasdaq Non-Financial Stock Index is an index comprising all
non-financial common shares traded on the Nasdaq National Market and the Nasdaq
Small-Cap Market. The S&amp;P Technology Sector Index is an index comprising
common shares of companies in the aerospace/defense, communications equipment,
electronics and office equipment and supplies industries. The Nasdaq Stock
Market Index, the Nasdaq Non-Financial Stock Index and the S&amp;P Technology
Sector Index are calculated on a total return basis to include the reinvestment
of dividends.</FONT></FONT> </P>


<P ALIGN="CENTER"><FONT size="2" FACE="Times New Roman, Times, serif"><b>COMPARISON
  OF 5 YEAR CUMULATIVE TOTAL RETURN*<br>
  AMONGST AXSYS TECHNOLOGIES, INC., THE NASDAQ STOCK MARKET (U.S.) INDEX, <br>
  THE NASDAQ NON-FINANCIAL INDEX AND THE S &amp; P TECHNOLOGY SECTOR INDEX <br>
  <br>
  </b></FONT></P>
<P ALIGN="CENTER"><b><font size="2" face="Times New Roman, Times, serif"><img src="chart.gif" width="485" height="348"></font></b></P>
<P ALIGN="left"><font size="1" face="Times New Roman, Times, serif">$100 invested
  on 12/31/98 in stock or index-including reinvestment of dividends. Fiscal year
  ending December 31.<br>
Copyright &copy; 2002, Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies, Inc. All rights reserved.  www.researchdatagroup.com/S&amp;P.htm</font></P>

<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 17</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<TABLE WIDTH="90%" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/98</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/99
      </font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/00</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/01</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/02</font></b></TD>
    <TD ALIGN="center">&nbsp;</TD>
    <TD colspan="2" ALIGN="center"><b><font size="1" face="Times New Roman, Times, serif">12/31/03</font></b></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Axsys
      Technologies, Inc. Common Stock</FONT></TD>
    <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      100</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      94.64</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      194.64</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      71.43</FONT></TD>
    <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      55.71</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$</FONT></TD>
    <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
      100.07</FONT></TD>
    <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Nasdaq
      Stock Market Index (U.S.)</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">192.96</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">128.98</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">67.61</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62.17</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">87.61</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Nasdaq
      Non-Financial Index</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">200.28</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">124.31</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">102.73</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">68.87</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">104.46</FONT></TD>
    <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">S&amp;P
      Technology Sector Index</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">178.74</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">105.63</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">78.31</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">49.01</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">72.16</FONT></TD>
    <TD ALIGN="LEFT" bgcolor="#eeeeee"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><font size="1" face="Times New Roman, Times, serif">Copyright
      &copy; 2002, Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies,
      Inc. All rights reserved.<br>
      www.researchdatagroup.com/S&amp;P.htm</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD colspan="21" ALIGN="LEFT"><hr size="1" noshade></TD>
  </TR>
</TABLE>

<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">SECTION
  16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Section
  16(a) of the Securities Exchange Act of 1934 requires Axsys&#146; directors,
  executive officers and any persons who beneficially own more than 10% of a registered
  class of Axsys&#146; equity securities to file with the SEC and the Nasdaq National
  Market initial reports of ownership and reports of changes in ownership of Common
  Stock and other equity securities of Axsys. Officers, directors and stockholders
  owning more than 10% are required by SEC regulation to furnish Axsys with copies
  of all Section 16(a) forms they file. To Axsys&#146; knowledge, based solely
  on the information furnished to Axsys, all applicable Section 16(a) filing requirements
  were complied with during the year ended December 31, 2003 except that Mr. Stephen
  W. Bershad, Mr. David A. Almeida and Mr. Kenneth F. Stern, executive officers,
  were late in filing their Statement of Changes in Beneficial Ownership on Form
  4 with regard to a grant of incentive stock options for 20,000, 10,000 and 5,000
  shares of Common Stock, respectively, under Axsys&#146; Incentive Stock Option
  Plan.</FONT></FONT> </P>
<hr align="left" width="100" size="1" noshade>
<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">STOCKHOLDER
  PROPOSALS FOR 2005 ANNUAL MEETING</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholders
who intend to present proposals at the next annual meeting of stockholders, and
who wish to have such proposals included in the proxy statement and form of
proxy for such meeting, pursuant to the mechanism provided by the SEC rules,
must submit such proposals in writing to the Secretary of Axsys Technologies,
Inc., 175 Capital Boulevard, Suite 103, Rocky Hill, Connecticut 06067, and such
notice must be received no later than November 24, 2004.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Stockholders
who do not wish to use the mechanism provided by the SEC rules in proposing a
matter for action at the next annual meeting must notify Axsys in writing of the
proposal and the information required by the provisions of Axsys&#146; By-Laws
dealing with stockholder proposals. The notice must be submitted in writing to
Axsys generally not less than 60 days nor more than 90 days in advance of an
annual meeting. It is presently anticipated that next year&#146;s annual meeting
will be held on May 3, 2005 and, accordingly, any stockholder proposal for next
year&#146;s meeting submitted to Axsys on or between February 2, 2005 and March
4, 2005 will be considered filed on a timely basis. With respect to any
proposals that are not filed timely, proxies solicited by Axsys for the 2005
Annual Meeting may confer discretionary authority to vote on any of those
proposals. A copy of Axsys&#146; By-Laws that describes the advance-notice
procedures can be obtained from the Secretary of Axsys.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Axsys
knows of no other matter to be brought before the meeting. If any other matter
requiring a vote of the shares should come before the meeting, it is the
intention of the persons named in the proxy to vote with respect to any matter
in accordance with their best judgment.</FONT></FONT> </P>


<P ALIGN="CENTER"><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3">ANNUAL
  REPORT ON FORM 10-K</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">A copy
of Axsys&#146; Annual Report on Form 10-K for the fiscal year ended December 31,
2003, as filed with the SEC, will be provided to stockholders without charge
upon receipt of a written request to: Investor Relations, Axsys Technologies,
Inc., 175 Capital Boulevard, Suite 103, Rocky Hill, Connecticut 06067.</FONT></FONT> </P>

<font size="2" face="Times New Roman, Times, serif">March 26, 2004 </font>
<p align="center"><font size="2" face="Times New Roman, Times, serif">Page 18</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<P ALIGN="right"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>EXHIBIT
  A</B></FONT></FONT></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><b>AUDIT
  COMMITTEE CHARTER<br>
  </b></FONT></FONT><b><font size="2" face="Times New Roman, Times, serif">Amended
  and Restated by the Board of Directors of Axsys Technologies, Inc.<br>
  </font></b><b><FONT size="2" FACE="Times New Roman, Times, serif">May 13, 2003</FONT></b></P>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Audit Committee is a committee of the Board of Directors. Its primary function
is to assist the Board of Directors in fulfilling its oversight responsibilities
by reviewing the financial information that will be provided to the stockholders
and others, the systems of internal controls that management and the Board of
Directors have established, and the work of the independent auditor and the
audit process. The Committee shall be directly responsible for the appointment,
compensation, retention and oversight of the work of the independent auditor
(including resolution of disagreements between management and the independent
auditor regarding financial reporting.)</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">In
meeting its responsibilities, the Audit Committee is expected to:</FONT></FONT> </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><font size="2" face="Times New Roman, Times, serif">1.</font></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD>
<P ALIGN="LEFT"><font size="2" face="Times New Roman, Times, serif">Provide an
        open avenue of communication between the chief financial officer, the
        independent auditor, and the Board of Directors.</font></P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">2.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Retain and replace
      the independent auditor to audit the books, records and accounts of the
      Company. The independent auditor shall report directly to the Audit Committee.</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">3.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Determine and approve
      the appropriate compensation for independent auditors and other advisers
      that the Audit Committee chooses to engage. </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">4.</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Pre-approve
      all audit and non-audit engagements or services with or by the independent
      auditors. The Committee may delegate to one or more Committee members the
      authority to pre-approve non-audit services between regularly scheduled
      meetings provided that such approvals are reported to the full Committee
      at the next Committee meeting.</FONT></FONT> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">5.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Confirm and assure
      the independence of the independent auditor. </font> </TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">6.</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Inquire of management and the independent auditor about significant risks
        or exposures and assess the steps management has taken to minimize such
        risk to the Company.</FONT></FONT> </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">7. </font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Approve the independent
      auditor&#146;s annual audit plan, including scope, staffing, locations and reliance
      upon management. </font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">8.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Consider with management
      and the independent auditor the rationale for employing audit firms other
      than the principal independent auditor. </font> </TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">9.</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD colspan="3"> <P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Review with the chief financial officer and the independent auditor the
        coordination of audit effort to assure completeness of coverage, reduction
        of redundant efforts, and the effective use of audit resources.</FONT></FONT>
      </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">10.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3"><font size="2" face="Times New Roman, Times, serif"> Consider
      and review with the independent auditor and the chief financial officer:
      </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;
      </FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The adequacy
      of the Company&#146;s internal controls including computerized information
      system controls and security.</FONT></FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150; </FONT></FONT></TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2">Any related
      significant findings and recommendations of the independent auditor with
      management&#146;s responses thereto.</font></font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">11.
      </font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3"><font size="2" face="Times New Roman, Times, serif">Review
      with management and the independent auditor at the completion of the annual
      examination: </font> </TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">A-1</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD width="3%" ALIGN="RIGHT">&nbsp;</TD>
    <TD width="3%" ALIGN="LEFT">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;
      </FONT></FONT></TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2">The Company&#146;s
      annual financial statements and related footnotes.</font></font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150; </FONT></FONT></TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2">The independent
      auditor&#146;s audit of the financial statements and his or her report thereon.</font></font>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150; </FONT></FONT></TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2">Any significant
      changes required in the independent auditor&#146;s audit plan.</font></font>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Any serious
      difficulties or disputes with management encountered during the course of
      the audit.</FONT></FONT> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Other matters
      related to the conduct of the audit, which are to be communicated to the
      Committee under generally accepted auditing standards.</FONT></FONT> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">12.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3"><font size="2" face="Times New Roman, Times, serif"> Consider
      and review with the independent auditor: </font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">All critical accounting
      policies and practices to be used. </font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> All alternative
      treatments of financial information within generally accepted accounting
      principles that have been discussed with management, ramifications of the
      use of such alternative disclosures and treatments, and the treatment preferred
      by the independent auditor.</FONT></FONT> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Other material
      written communications between the independent auditor and management, such
      as any management letter or schedule of unadjusted differences.</FONT></FONT>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"> Any difficulties
      encountered in the course of their audits, including any restrictions on
      the scope of their work or access to required information.</FONT></FONT>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Any changes
      required in the planned scope of their audit plan.</FONT></FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">13.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD colspan="3"><font size="2" face="Times New Roman, Times, serif"> Consider
      and review with management and the chief financial officer: </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2"> Significant
      findings during the year and management&#146;s responses thereto.</font></font>
    </TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">14.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Review filings with the SEC and other published documents containing the
Company&#146;s financial statements and consider whether the information in
these documents is consistent with the information contained in the financial
statements.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">15.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Review with management and the independent auditor interim financial reports
(e.g. Earnings Press Release or Form 10-Q) before they are filed with the SEC or
other regulators.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">16.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Review policies and procedures with respect to officers&#146; expense accounts
and perquisites, including their use of corporate assets, and consider the
results of any review of these areas by the independent auditor.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">17.</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
Review legal and regulatory matters that may have a material impact on the
financial statements, related company compliance policies, and programs and
reports received from regulators.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">18.</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Meet with the independent auditor and management in separate executive
        sessions to discuss any matters that the Committee or these groups believe
        should be discussed privately with the Audit Committee.</FONT></FONT>
      </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">19.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Report Committee
      actions to the Board of Directors with such recommendations, as the Committee
      may deem appropriate. </font> </TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">A-2</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">20.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Prepare a letter
      for inclusion in the annual report that describes the Committee&#146;s composition
      and responsibilities and how they were discharged. </font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">21.</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        The Audit Committee shall have the power to conduct or authorize investigations
        into any matters within the Committee&#146;s scope of responsibilities.
        The Committee shall be empowered to retain independent counsel, auditors,
        or other advisors as it determines necessary to carry out its duties.</FONT></FONT>
      </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">22.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Establish procedures
      for the receipt, retention and treatment of complaints received by the Company
      regarding accounting, internal controls and auditing matters.</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">23.
      </font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Establish procedures
      for the confidential, anonymous submission to the Committee by the Company&#146;s
      employees of concerns regarding questionable accounting or auditing matters.</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">24.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Review and update
      the Committee&#146;s charter annually. </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">25.</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        The Committee shall meet at least four times per year or more frequently
        as circumstances require. The Committee may ask members of management
        or others to attend the meeting and provide pertinent information as necessary.</FONT></FONT>
      </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT">&nbsp;</TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><font size="2" face="Times New Roman, Times, serif">26.</font></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> The Committee will
      perform such other functions as assigned by law, the Company&#146;s charter or
      bylaws, or the Board of Directors. </font> </TD>
  </TR>
</TABLE>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
membership of the Audit Committee shall consist of at least three members of the
Board of Directors, each of whom shall meet the independence requirements under
applicable law and the rules of the Nasdaq Stock Market, and each of whom shall
serve at the pleasure of the Board of Directors. The Audit Committee, as a
whole, shall meet the financial literacy and other similar qualification
requirements of applicable law and the rules of the Nasdaq Stock Market. Audit
Committee members and the Committee chairman shall be designated by the full
Board of Directors.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
duties and responsibilities of a member of the Audit Committee are in addition
to those duties set out for a member of the Board of Directors.</FONT></FONT> </P>






<p align="center"><font size="2" face="Times New Roman, Times, serif">A-3</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>


<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>EXHIBIT
  B</B></FONT></FONT></P>


<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>NOMINATING
  AND CORPORATE GOVERNANCE COMMITTEE CHARTER<br>
  </B> <B>Amended and Restated by the Board of Directors of Axsys Technologies,
  Inc.<br>
  </B></FONT></FONT><b><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">March
  4, 2004</FONT></FONT></b></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Board of Directors (the &#147;Board&#148;) of Axsys Technologies, Inc. (the
&#147;Company&#148;) has constituted and established a Nominating and Governance
Committee (the &#147;Committee&#148;) with authority, responsibility, and
specific duties as described in this Nominating and Governance Committee
Charter.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Composition
and Term of Office</B></FONT></FONT></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Committee shall be comprised of not less than two (2) independent members of the
Board. The members of the Committee shall be elected by the Board annually at
the meeting of the Board immediately following the stockholder&#146;s meeting or
as necessary to fill vacancies in the interim. The Board may also change the
membership of the Committee at any time. The Board shall elect the Chairman of
the Committee.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Purpose</B></FONT></FONT></P>

<p><font size="2" face="Times New Roman, Times, serif">The purpose of the Committee
  is to:</font></p>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Identify and screen
      individuals for nomination to the Board; </font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
        Recommend to the Board director nominees for election at each meeting
        of stockholders at which directors are to be elected and recommend to
        the Board individuals to fill any vacancies on the Board that arise between
        such meetings;</FONT></FONT> </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Recommend to the Board
      directors for appointment to each committee of the Board;</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Recommend to the Board
      a set of Corporate Governance Guidelines applicable to the Company and,
      as necessary or advisable, recommend periodic amendments thereto; and</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font size="2" face="Times New Roman, Times, serif">Lead the Board in
      its annual review of the Board&#146;s performance. </font></TD>
  </TR>
</TABLE>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Authority
and Specific Duties</B></FONT></FONT></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Committee shall perform each of the specific duties enumerated below.</FONT></FONT> </P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Board
and Committee Nominees</B></FONT></FONT></P>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
The Committee shall have the sole authority to retain and terminate any search
firm to be used to identify director candidates and shall have the sole
authority to approve the search firm&#146;s fees and other retention terms. The
Committee shall also have the authority to obtain advice and assistance from
internal and external legal, accounting or other advisors in connection with the
performance of its duties and responsibilities, the cost of which shall be borne
by the Company.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
The Committee shall establish criteria for Board membership, consistent with all
applicable laws and regulations, and shall identify and screen candidates for
nomination to the Board.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
The Committee shall recommend to the Board director nominees for election at
each meeting of stockholders at which directors are to be elected and recommend
to the Board individuals to fill any vacancies on the Board that arise between
such meetings.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
The Committee shall establish criteria for membership, consistent with all
applicable laws and regulations, on each committee of the Board and recommend to
the Board directors for appointment to such committees.</FONT></FONT> </P></TD>
</TR>
</TABLE>
<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Corporate
Governance Matters</B></FONT></FONT></P>


<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">The
Committee shall recommend to the Board a set of Corporate Governance Guidelines
applicable to the Company. The Committee shall, from time to time, as the
Committee deems appropriate, but no less frequently than annually, review and
assess the adequacy of the Company&#146;s Corporate Governance Guidelines and
recommend to the Board for approval any changes that the Committee considers
appropriate.</FONT></FONT> </P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">B-1</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>





<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Other</B></FONT></FONT></P>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT" WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="94%"><P ALIGN="LEFT"><font face="Times New Roman, Times, Serif"><font size="2">The
        Committee shall report to the Board on a regular basis regarding matters
        that it oversees.</font></font> </P></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2"> The Committee
      shall have the authority to form, and delegate authority to, subcommittees
      when appropriate and to establish other rules and operating procedures in
      order to fulfill its obligations under this Charter and applicable law and
      regulations.</font></font> </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&#150;</FONT></FONT></TD>
    <TD ALIGN="LEFT">&nbsp;</TD>
    <TD><font face="Times New Roman, Times, Serif"><font size="2">The Committee
      shall review this Charter annually and make recommendations to the Board
      for any proposed changes.</font></font> </TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">B-1</font></p>
<hr size="2" noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="70%" align="left" valign="top"><b></b></td>
    <td width="15%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="5%" valign="top" nowrap><font size="1" face="Arial, Helvetica, sans-serif">Please<br>
      Mark Here<br>
      for Address<br>
      Change or<br>
      Comments</font></td>
    <td width="10%" valign="middle"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
  </tr>
  <tr>
    <td width="70%" align="left" valign="top">&nbsp;</td>
    <td width="15%" valign="top">&nbsp;</td>
    <td colspan="2" valign="top" nowrap><font face="Arial, Helvetica, sans-serif" size="1"><b><font face="Arial, Helvetica, sans-serif">SEE
      REVERSE SIDE</font></b></font></td>
  </tr>
</table>
<p>&nbsp; </p>
<table width="100%"  border="0" cellspacing="0" cellpadding="5">
  <tr valign="top">
    <td width="2%"><b><font size="2" face="Arial, Helvetica, sans-serif">1.</font></b></td>
    <td colspan="3"><b><font size="2" face="Arial, Helvetica, sans-serif">ELECTION
      OF DIRECTORS</font></b></td>
    <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="5"><b><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif">01
      Stephen W. Bershad, 02 Anthony J. Fiorelli, Jr., 03 Eliot M. Fried, 04 Richard
      F. Hamm, Jr. and 05 Robert G. Stevens</font></b></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="12%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif"><b>FOR
      all nominees<br>
      listed to the right</b><br>
      (except as marked to the contrary to the right)</font></td>
    <td width="12%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif"><b>WITHHOLD<br>
      AUTHORITY</b><br>
      to vote for all nominees listed to the right</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="5" rowspan="2" valign="top"><font size="2" face="Arial, Helvetica, sans-serif"><br>
      Instruction: TO WITHHOLD AUTHORITY to vote for one or more nominees listed
      above, write the name of the nominee(s) in the space provided below. <br>
      <br>
      <br>
      </font>
      <hr size="1" noshade> <font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="12%" align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td width="12%" align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td width="5%"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">FOR</font></td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">AGAINST</font></td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">ABSTAIN</font></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
    <td width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Arial, Helvetica, sans-serif">2.</font></td>
    <td colspan="3" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">Ratification
      of the Appointment of Ernst &amp; Young LLP as the Company&#146;s independent
      accountants for fiscal year 2004.</font></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td>&nbsp;</td>
    <td valign="top"><font size="2" face="Arial, Helvetica, sans-serif">3. </font></td>
    <td colspan="2" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">In
      their discretion, the Proxies are authorized to vote upon such other business
      as may properly come before the meeting.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="right" valign="middle"><font size="2" face="Arial, Helvetica, sans-serif">I
      PLAN TO ATTEND THE MEETING</font></td>
    <td valign="middle"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
  </tr>
</table>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="35%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Consenting
      to receive all future annual meeting materials and shareholder communications
      electronically is simple and fast! </B>Enroll today at <u>www.melloninvestor.com/ISD</u>
      for secure online access to your proxy materials, statements, tax documents
      and other important shareholder correspondence.</font></td>
  </tr>
</table>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td nowrap><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Signature</b>
      _________________________________ <b>Signature</b> _________________________________
      <b>Date</b> ______________</font></td>
  </tr>
  <tr>
    <td><b><font color="#FF0000" size="1" face="Arial, Helvetica, sans-serif">Please
sign exactly as name appears above. When shares are held by joint tenants, both
should sign. When signing as attorney, executor, administrator, trustee or
guardian, please give full title as such. If a corporation, please sign in full
corporate name by President or other authorized officer. If partnership, please
sign in partnership name by authorized person.</font></b></td>
  </tr>
</table>
<table width="100%"  border="0" cellspacing="5" cellpadding="0">
  <tr>
    <td> <hr noshade> </td>
  </tr>
  <tr align="center" valign="top">
    <td> <font size="2" face="Arial, Helvetica, sans-serif"><b>^ FOLD AND DETACH
      HERE ^</b></font></td>
  </tr>
</table>
<br>
<p align="center"><font color="#FF0000" size="4" face="Arial, Helvetica, sans-serif"><b>Vote
  by Internet or Telephone or Mail</b></font><font color="#FF0000" face="Arial, Helvetica, sans-serif"><br>
  <b><font size="3">24 Hours a Day, 7 Days a Week</font></b></font></p>
<P ALIGN="center"><FONT color="#FF0000" SIZE="2" face="Arial, Helvetica, sans-serif"><B>Internet
  and telephone voting is available through 11:59 PM Eastern Time <br>
  the day prior to annual meeting day.</B></FONT></P>
<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>Your
  Internet or telephone vote authorizes the named proxies to vote your shares
  in the same manner <br>
  as if you marked, signed and returned your proxy card.</B></FONT></FONT> </P>
<table width="100%" border="0" align="center" cellpadding="0" cellspacing="10">
  <tr>
    <td width="1"nowrap></td>
    <td width="200" valign="top"> <center>
        <font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Internet<br>
        http://www.eproxy.com/axys</b></font>
      </center>
      <p align="left"><font size="2" face="Arial, Helvetica, sans-serif">Use
the Internet to vote your proxy. Have your proxy card in hand when you access
the web site.</font></p></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="50"><center>
        <font size="3" face="Arial, Helvetica, sans-serif"><b>OR</b></font></center></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="200" valign="top"> <center>
        <font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Telephone<br>
        1-800-435-6710</b></font>
      </center>
      <p align="left"><font size="2" face="Arial, Helvetica, sans-serif">Use
any touch-tone telephone to vote your proxy. Have your proxy card in hand when
you call.</font></p></td>
    <td  width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="50"><center>
        <font size="3" face="Arial, Helvetica, sans-serif"><b>OR</b></font></center></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="200" align="center" valign="top"><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif">
      <b>Mail</b></font> <br>
      <br>
      <font size="2" face="Arial, Helvetica, sans-serif">Mark,
sign and date your proxy card and return it in the enclosed postage-paid
envelope.</font></td>
    <td width="1" nowrap></td>
  </tr>
</table>
<P ALIGN="center"><B><font size="3" face="Arial, Helvetica, sans-serif">If you
  vote your proxy by Internet or by telephone, <br>
  you do NOT need to mail back your proxy card.</font></B></P>
<P ALIGN="left"><font size="3" face="Arial, Helvetica, sans-serif"><b>You can
  view the Annual Report and Proxy Statement<br>
  on the internet at www.axsys.com</b></font></P>

<HR noshade>
<p align="left" style="page-break-before:always">&nbsp;</p>
<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="4"><B>AXSYS
  TECHNOLOGIES, INC.</B></FONT></FONT></P>

<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>ANNUAL
  MEETING OF STOCKHOLDERS &#151; May 11, 2004 <br>
  PROXY <br>
  This Proxy is Solicited by the Board of Directors</B></FONT></FONT> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2">The
undersigned hereby appoints Stephen W. Bershad and David A. Almeida, and each of
them, the attorneys and proxies of the undersigned (each with power to act
without the other and with power of substitution) to vote, in accordance with
the terms of this proxy, all shares of Common Stock of Axsys Technologies, Inc.,
which the undersigned may be entitled to vote at the Annual Meeting of
Stockholders to be held at the Hartford Marriott Rocky Hill at Corporate Ridge,
100 Capital Boulevard, Rocky Hill, Connecticut, on the 11th day of May, 2004, at
10:00 a.m., and any adjournment or postponement thereof, upon all matters which
may properly come before said meeting.</FONT></FONT> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted
&#147;FOR&#148; ALL NOMINEES FOR DIRECTOR AND WILL BE VOTED &#147;FOR&#148;
Proposal 2.</B></FONT></FONT> </P>

<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2">(Continued,
  and to be dated and signed, on reverse side.)</FONT></FONT> </P>

<table width="100%"  border="1" cellpadding="3" cellspacing="0">
  <tr>
    <td align="center"><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Address
      Change/Comments <font size="1">(Mark the corresponding box on the reverse
      side)</font></b></font></td>
  </tr>
  <tr>
    <td><br>
      <br>
      <br>
    </td>
  </tr>
</table>
<p align="left">
<table width="100%"  border="0" align="center" cellpadding="0" cellspacing="5">
  <tr>
    <td>
        <hr noshade>
      </td>
  </tr>
  <tr>
    <td align="center" valign="top"> <font size="2" face="Arial, Helvetica, sans-serif"><b>^
      FOLD AND DETACH HERE ^</b></font></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<HR noshade>
<P align="left" style="page-break-before:always">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="70%" align="left" valign="top"><b></b></td>
    <td width="15%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="5%" valign="top" nowrap><font size="1" face="Arial, Helvetica, sans-serif">Please<br>
      Mark Here<br>
      for Address<br>
      Change or<br>
      Comments</font></td>
    <td width="10%" valign="middle"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
  </tr>
  <tr>
    <td width="70%" align="left" valign="top">&nbsp;</td>
    <td width="15%" valign="top">&nbsp;</td>
    <td colspan="2" valign="top" nowrap><font face="Arial, Helvetica, sans-serif" size="1"><b><font face="Arial, Helvetica, sans-serif">SEE
      REVERSE SIDE</font></b></font></td>
  </tr>
</table>
<p>&nbsp; </p>
<table width="100%"  border="0" cellspacing="0" cellpadding="5">
  <tr valign="top">
    <td width="2%"><b><font size="2" face="Arial, Helvetica, sans-serif">1.</font></b></td>
    <td colspan="3"><b><font size="2" face="Arial, Helvetica, sans-serif">ELECTION
      OF DIRECTORS</font></b></td>
    <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="5"><b><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif">01
      Stephen W. Bershad, 02 Anthony J. Fiorelli, Jr., 03 Eliot M. Fried, 04 Richard
      F. Hamm, Jr. and 05 Robert G. Stevens</font></b></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="12%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif"><b>FOR
      all nominees<br>
      listed to the right</b><br>
      (except as marked to the contrary to the right)</font></td>
    <td width="12%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif"><b>WITHHOLD<br>
      AUTHORITY</b><br>
      to vote for all nominees listed to the right</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="5" rowspan="2" valign="top"><font size="2" face="Arial, Helvetica, sans-serif"><br>
      Instruction: TO WITHHOLD AUTHORITY to vote for one or more nominees listed
      above, write the name of the nominee(s) in the space provided below. <br>
      <br>
      <br>
      </font>
      <hr size="1" noshade> <font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="12%" align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td width="12%" align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td width="5%"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">FOR</font></td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">AGAINST</font></td>
    <td width="8%" align="center" valign="bottom"><font size="1" face="Arial, Helvetica, sans-serif">ABSTAIN</font></td>
    <td width="5%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
    <td width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Arial, Helvetica, sans-serif">2.</font></td>
    <td colspan="3" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">Ratification
      of the Appointment of Ernst &amp; Young LLP as the Company&#146;s independent
      accountants for fiscal year 2004.</font></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td align="center" valign="top"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
    <td>&nbsp;</td>
    <td valign="top"><font size="2" face="Arial, Helvetica, sans-serif">3. </font></td>
    <td colspan="2" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">In
      their discretion, the trustee is authorized to vote upon such other business
      as may properly come before the meeting.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="right" valign="middle"><font size="2" face="Arial, Helvetica, sans-serif">I
      PLAN TO ATTEND THE MEETING</font></td>
    <td valign="middle"><FONT color="#FF0000" size="7" face="wingdings">&#111;</FONT></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="35%">&nbsp;</td>
  </tr>
</table>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td nowrap><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Signature</b>
      _________________________________ <b>Signature</b> _________________________________
      <b>Date</b> ______________</font></td>
  </tr>
  <tr>
    <td><b><font color="#FF0000" size="1" face="Arial, Helvetica, sans-serif">Please
sign exactly as name appears above. When shares are held by joint tenants, both
should sign. When signing as attorney, executor, administrator, trustee or
guardian, please give full title as such. If a corporation, please sign in full
corporate name by President or other authorized officer. If partnership, please
sign in partnership name by authorized person.</font></b></td>
  </tr>
</table>
<table width="100%"  border="0" cellspacing="5" cellpadding="0">
  <tr>
    <td> <hr noshade> </td>
  </tr>
  <tr align="center" valign="top">
    <td> <font size="2" face="Arial, Helvetica, sans-serif"><b>^ FOLD AND DETACH
      HERE ^</b></font></td>
  </tr>
</table>
<br>
<p align="center"><font color="#FF0000" size="4" face="Arial, Helvetica, sans-serif"><b>Vote
  by Internet or Telephone or Mail</b></font><font color="#FF0000" face="Arial, Helvetica, sans-serif"><br>
  <b><font size="3">24 Hours a Day, 7 Days a Week</font></b></font></p>
<P ALIGN="center"><FONT color="#FF0000" SIZE="2" face="Arial, Helvetica, sans-serif"><B>Internet
  and telephone voting is available through 11:59 PM Eastern Time <br>
  the day prior to annual meeting day.</B></FONT></P>
<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>Your
  Internet or telephone vote authorizes the named proxies to vote your shares
  in the same manner <br>
  as if you marked, signed and returned your proxy card.</B></FONT></FONT> </P>
<table width="100%" border="0" align="center" cellpadding="0" cellspacing="10">
  <tr>
    <td width="1"nowrap></td>
    <td width="200" valign="top"> <center>
        <font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Internet<br>
        http://www.eproxy.com/axys</b></font>
      </center>
      <p align="left"><font size="2" face="Arial, Helvetica, sans-serif">Use
the Internet to vote your proxy. Have your proxy card in hand when you access
the web site.</font></p></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="50"><center>
        <font size="3" face="Arial, Helvetica, sans-serif"><b>OR</b></font></center></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="200" valign="top"> <center>
        <font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif"><b>Telephone<br>
        1-800-435-6710</b></font>
      </center>
      <p align="left"><font size="2" face="Arial, Helvetica, sans-serif">Use
any touch-tone telephone to vote your proxy. Have your proxy card in hand when
you call.</font></p></td>
    <td  width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="50"><center>
        <font size="3" face="Arial, Helvetica, sans-serif"><b>OR</b></font></center></td>
    <td width="1" nowrap><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="200" align="center" valign="top"><font color="#FF0000" size="2" face="Arial, Helvetica, sans-serif">
      <b>Mail</b></font> <br>
      <br>
      <font size="2" face="Arial, Helvetica, sans-serif">Mark,
sign and date your proxy card and return it in the enclosed postage-paid
envelope.</font></td>
    <td width="1" nowrap></td>
  </tr>
</table>
<P ALIGN="center"><B><font size="3" face="Arial, Helvetica, sans-serif">If you
  vote your proxy by Internet or by telephone, <br>
  you do NOT need to mail back your proxy card.</font></B></P>
<P ALIGN="left"><font size="3" face="Arial, Helvetica, sans-serif"><b>You can
  view the Annual Report and Proxy Statement<br>
  on the internet at www.axsys.com</b></font></P>

<HR noshade>
<p align="left" style="page-break-before:always">&nbsp;</p>
<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="4"><B>AXSYS
TECHNOLOGIES, INC.</B></FONT></FONT></P>

<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>ANNUAL
  MEETING OF STOCKHOLDERS &#151; May 11, 2004 <br>
  VOTING INSTRUCTIONS</B></FONT></FONT> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2">The
undersigned hereby authorizes and directs Fidelity Investments Institutional
Services Company, Inc., as trustee (the &#147;Trustee&#148;) of Axsys
Technologies, Inc. Employees Retirement Savings Plan to vote for the
undersigned, in person or by proxy, as herein stated at the Annual Meeting of
Stockholders of Axsys Technologies, Inc. (the &#147;Company&#148;) to be held at
the Hartford Marriott Rocky Hill at Corporate Ridge, 100 Capital Boulevard,
Rocky Hill, Connecticut, on the 11th day of May, 2004, at 10:00 a.m., and any
adjournment thereof, all shares of Common Stock of the Company allocated to the
account of the undersigned under such plan, on the proposals set forth on the
reverse side hereof and in accordance with the Trustee&#146;s discretion on any
other matters that may properly come before the meeting or any adjournments
thereof. The undersigned hereby acknowledges receipt of the Notice and Proxy
Statement.</FONT></FONT> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2"><B>This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted
&#147;FOR&#148; ALL NOMINEES FOR DIRECTOR AND WILL BE VOTED &#147;FOR&#148;
Proposal 2.</B></FONT></FONT> </P>

<P ALIGN="center"><FONT FACE="Arial, Helvetica, sans-serif"><FONT SIZE="2">(Continued,
  and to be dated and signed, on reverse side.)</FONT></FONT> </P>

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