Kulicke & Soffa Reports Results for Its Fourth Quarter and Fiscal Year 2008

During the fourth quarter, the Company announced the divestiture of its wire business, and accordingly, all operating results associated with this business are reported as discontinued operations. On a non-GAAP basis (excluding equity-based compensation, amortization of intangibles and related tax effects), the Company reported fourth quarter net revenue from continuing operations of $61.2 million, and a net loss of $10.3 million or $0.19 per share.

Quarterly GAAP Results From Continuing Operations Q4 2008 Change vs. Q4 2007 vs. Q3 2008 Net Revenue $61.2 million -60% -16% Gross Profit $24.9 million -59% -16% Gross Margin 40.6% +34 basis points -35 basis points Net Income (Loss) ($11.0 million) -143% -51% Net Margin -18.0% -3,472 basis points -790 basis points EPS -- Diluted $(0.21) -153% -50%

Quarterly Non-GAAP Measures From Continuing Operations Q4 2008 Vs. Q4 2007 vs. Q3 2008 Net Revenue $61.2 million -60% -16% Gross Profit $24.9 million -59% -16% Gross Margin 40.7% +41 basis points -33 basis points Net Income (Loss) ($10.3 million) -143% -68% Net Margin -16.8% -3,256 basis points -835 basis points EPS -- Diluted $(0.19) -151% -68%

Non-GAAP measures exclude: equity-based compensation from expenses; amortization of intangibles; and related tax effects (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

Commenting on the results, Scott Kulicke, Chairman and Chief Executive Officer, said, "Global economic conditions deteriorated rapidly toward the end of the September quarter, creating a very difficult business environment. Customers responded quickly to the weakening economic conditions, slowing bookings toward the end of that quarter and into the current quarter. We expect demand to remain weak and visibility to be poor through at least the first half of our fiscal 2009. For that reason, we expect net revenue of approximately $40 million during the first fiscal quarter of 2009."

"To cope with this difficult environment, we are taking appropriate steps to manage costs. These measures include a headcount reduction of 240 positions and a cancellation of annual salary increases scheduled for January. We expect theses measures to cost approximately $3 million, and to result in approximately $12 million in annualized savings."

Mr. Kulicke concluded, "Although we are heading into a difficult period, we believe we are well positioned to weather the turmoil. We started fiscal 2009 with $186 million in cash, and added about $70 million more after the sale of the wire business and the acquisition of Orthodyne. This balance sheet strength, combined with the strong market position of our core products, makes us confident in our ability to extend our position as a leading supplier of semiconductor assembly solutions."

Financial Details

-- Total cash and cash investments at fiscal year end were $186 million, up $3.3 million.

-- Subsequent to year end, we closed the divestiture of the wire business and the Orthodyne acquisition, and on a combined basis added approximately $70 million to our cash balance.

Key Product Trends

-- Transition to IConnPS and ConnXPS ball bonders, which replace the Maxum Ultra and Maxum Elite, respectively, is proceeding as planned. Qualifications for both products have been completed with the bulk of our customers, and the products met or exceeded performance expectations. IConnPS and ConnXPS reinforce our technology leadership in ball bonding and will provide customers with significant cost of ownership savings.

-- Completed alpha testing for the Discovery die bonder, and the product remains on track for launch in winter of 2009.

-- Launched Uniplus(TM)--a new series of hub dicing blades that provide improved cut quality, longer blade life and increased productivity for a variety of chip scale package (CSP) applications.

Outlook for First Fiscal Quarter 2009

-- Net revenue is expected to be approximately $40 million, including Orthodyne.

Fiscal Year 2008 Results

For the fiscal year 2008, K&S net revenue from continuing operations was $328.1 million, and we incurred a net loss of $19.6 million or $0.37 per share. On a non-GAAP basis, the Company reported fiscal 2008 net revenue of $328.1 million and a net loss of $8.4 million or $0.16 per share.

Annual GAAP Results From Continuing Operations FY 2008 FY 2007 Change Net Revenue $328.1 million $370.5 million -11.0% Gross Profit $133.8 million $155.4 million -14.0% Gross Margin 40.8% 42.0% -117 basis points Net Income (Loss) ($19.6 million) $18.9 million -204% Net Margin (6.1%) 5.1% -1,107 basis points EPS- Diluted ($0.37) $0.29 -228%

Annual Non-GAAP Measures From Continuing Operations FY 2008 FY 2007 Change Net Revenue $328.1 million $370.5 million -11.0% Gross Profit $134.0 million $155.7 million -14.0% Gross Margin 40.9% 42.0% -115 basis points Net Income (Loss) ($8.4 million) $17.1 million -149% Net Margin (2.5%) 4.6% -716 basis points EPS- Diluted ($0.16) $0.27 -158%

Non-GAAP measures exclude: equity-based compensation from expenses; amortization of intangibles; U.S. pension plan termination charge; debt extinguishment; and related tax effects (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

Earnings Conference Call Details

A conference call to discuss these results will be held today, November 13, 2008 beginning at 9:00 AM EDT. Interested participants may call 877-407-8037 for the teleconference or log on to http://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll free 877-660-6853 or internationally 201-612-7415 and using the following replay access codes 5521 (account number) and 302063 (replay ID number). A replay will also be available on the K&S web site at http://www.kns.com/investors/events. The replay will be available via phone and web site for a limited period.

Discussion of Non-GAAP Measures

This press release contains non-GAAP financial measures as a supplement to the consolidated financial results presented in accordance with GAAP. The Company believes certain non-GAAP measures provide investors with an additional, useful perspective on the Company's performance as seen through the eyes of management. Management uses non-GAAP financial measures along with GAAP financial results for: analyzing the performance of the Company's businesses; strategic and tactical decision making; and determining compensation. The Company does not consider non-GAAP financial measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP financial measures included herein are reconciled to the most directly comparable GAAP results in the following financial statements. These non-GAAP measures may be calculated differently from non-GAAP measures used by other companies. In addition, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and some of the adjustments reflect the exclusion of items that are recurring and will be reflected in the Company's GAAP financial results for the foreseeable future.

Exclusions from GAAP Results

The Company excludes the following from its GAAP results in presenting non-GAAP financial measures:

- Equity-based compensation expenses. In accordance with Statement of Financial Accounting Standards ("SFAS") No. 123R, Share Based Payments, the Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and performance-based restricted stock granted under the Company's equity compensation plans. Equity-based compensation is a non-cash expense that can vary significantly in amount from period to period.

- Other. The exclusion of certain other non-GAAP amounts allows for improved comparisons of the Company's results to both prior periods and other companies. The Company excludes the following other items from non-GAAP measures as these items are not reflective of the performance of the Company's ongoing businesses:

-- U.S. pension plan termination;

-- Debt extinguishment; and

-- Amortization of intangibles.

- Tax Adjustment. Non-GAAP measures are tax adjusted using the GAAP tax rate associated with each quarterly period. The tax rate is calculated by dividing each quarter's GAAP tax expense by the GAAP net income for that quarter. Non-GAAP year-to-date measures are calculated by summing the associated quarterly non-GAAP measures, without further tax adjustments.

Non-GAAP Measures

The specific non-GAAP measures included herein are gross profit, gross margin, net income, net margin, and EPS. The Company calculates these measures as follows:

--Gross Profit. K&S non-GAAP gross profit excludes the effects of equity-based compensation expense recorded within cost of sales.

--Gross Margin. K&S non-GAAP gross margin excludes the impact of equity-based compensation expense recorded within cost of sales.

--Net Income (loss) and Earnings per Share. K&S non-GAAP net income (loss) and EPS exclude equity-based compensation expenses, amortization of intangibles, U.S pension plan termination charge, gains on debt extinguishment, and related tax effects.

--Net Margin. Non-GAAP net margin reflects the Company's net margin excluding equity-based compensation, amortization of intangibles, U.S pension plan termination charge, gains on debt extinguishment, and related tax effects.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC | Quote | Chart | News | PowerRating) is a global leader in the design and manufacture of semiconductor assembly equipment. As one of the pioneers of the industry, K&S has provided customers with market leading packaging solutions for decades. In recent years K&S has expanded its product offerings through strategic acquisitions, adding die bonding, wedge bonding and a broader range of expendable tools to its core wire bonding products. Combined with its extensive expertise in process technology, K&S is well positioned to help customers meet the challenges of assembling the next-generation semiconductor devices. (www.kns.com)

Caution Concerning Forward Looking Statements

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to global economic conditions, future demand for our products, visibility regarding future demand for our products, future costs and savings associated with headcount and other reductions, our future revenue, sales, profitability, financial results, strength of our balance sheet, and product development. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: the risk of failure to successfully manage our operations; the risk of failure to successfully integrate Orthodyne; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; instability in capital and credit markets; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2007 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and employee data) (Unaudited) Three months ended Fiscal year ended September 29, September 27, September 29, September 27, 2007 2008 2007 2008 Net revenue $ 151,600 $ 61,230 $ 370,526 $ 328,050 Cost of sales 90,543 36,364 215,090 194,257 Gross profit 61,057 24,866 155,436 133,793 Selling, general and administrative 22,568 22,304 88,839 89,356 Research and development 13,016 14,683 49,085 59,917 U.S. pension plan termination - - - 9,152 Total operating expenses 35,584 36,987 137,924 158,425 Income (loss) from operations 25,473 (12,121 ) 17,512 (24,632 ) Interest income 2,073 1,004 6,866 4,732 Interest expense (924 ) (892 ) (2,876 ) (3,499 ) Gain on extinguishment of debt 2,802 - 2,802 170 Income (loss) from continuing operations 29,424 (12,009 ) 24,304 (23,229 ) before income taxes Provision (benefit) for income taxes 4,064 (992 ) 5,448 (3,610 ) Income (loss) from continuing operations 25,360 (11,017 ) 18,856 (19,619 ) Income from discontinued operations, net of tax 4,891 6,408 18,874 23,441 Net income (loss) $ 30,251 $ (4,609 ) $ 37,730 $ 3,822 Income (loss) per share from continuing operations: Basic $ 0.47 $ (0.21 ) $ 0.34 $ (0.37 ) Diluted $ 0.40 $ (0.21 ) $ 0.29 $ (0.37 ) Income from share of discontinued operations: Basic $ 0.09 $ 0.12 $ 0.33 $ 0.44 Diluted $ 0.07 $ 0.12 $ 0.28 $ 0.44 Net income (loss) per share: Basic $ 0.56 $ (0.09 ) $ 0.67 $ 0.07 Diluted $ 0.47 $ (0.09 ) $ 0.57 $ 0.07 Weighted average shares outstanding: Basic 53,546 53,621 56,221 53,449 Diluted 64,702 53,621 68,274 53,449 Stock-based compensation expense included in continuing operations: Cost of sales $ 45 $ 65 $ 236 $ 252 Selling, general and administrative 722 513 4,038 3,711 Research and development 330 192 1,576 1,442 Total $ 1,097 $ 770 $ 5,850 $ 5,405 Three months ended Fiscal year ended September 29, September 27, September 29, September 27, Additional financial data: 2007 2008 2007 2008 Depreciation and amortization Continuing operations $ 2,941 $ 2,336 $ 9,559 $ 9,080 Discontinued operations $ 530 $ 241 $ 1,352 $ 968 Capital expenditures Continuing operations $ 1,994 $ 1,544 $ 5,575 $ 7,850 Discontinued operations $ 32 $ 32 $ 188 $ 151 September 29, September 27, 2007 2008 Backlog of orders Continuing operations $ 86,000 $ 50,000 Discontinued operations $ 19,000 $ 22,000 Number of employees Continuing operations 2,649 2,496 Discontinued operations 254 293

Note -- Statements of operations and additional financial data reflect accounting for the sale of the company's Wire business as a discontinued operation in accordance with the requirements of FAS 144.

KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 29, September 27, 2007 2008 ASSETS CURRENT ASSETS Cash and cash equivalents $ 150,571 $ 144,932 Restricted cash - 35,000 Short-term investments 19,339 4,148 Accounts and notes receivable, net of allowance for doubtful 116,693 56,643 accounts of $1,586 and $1,376, respectively Inventories, net 37,838 27,236 Prepaid expenses and other current assets 12,023 18,729 Deferred income taxes 3,540 2,118 Current assets of discontinued operations 94,205 127,958 TOTAL CURRENT ASSETS 434,209 416,764 Property, plant and equipment, net 34,108 36,900 Intangible assets 500 386 Goodwill 3,528 2,709 Investments available for sale - 2,001 Other assets 6,573 5,468 Non-current assets of discontinued operations 33,682 32,909 TOTAL ASSETS $ 512,600 $ 497,137 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current portion of long term debt $ - $ 72,412 Accounts payable 62,870 25,028 Accrued expenses 34,714 27,255 Income taxes payable 22,665 569 Current liabilities of discontinued operations 22,201 34,411 TOTAL CURRENT LIABILITIES 142,450 159,675 Long term debt 251,412 175,000 Other liabilities 12,149 37,780 Deferred income taxes 22,525 21,591 Other liabilities of discontinued operations 809 624 TOTAL LIABILITIES 429,345 394,670 SHAREHOLDERS' EQUITY Common stock, no par value 288,714 295,841 Treasury stock, at cost (46,118 ) (46,118 ) Accumulated deficit (154,094 ) (149,465 ) Accumulated other comprehensive income (loss) (5,247 ) 2,209 TOTAL SHAREHOLDERS' EQUITY 83,255 102,467 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 512,600 $ 497,137

KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three months ended Fiscal year ended September 29, 2007 September 27, 2008 September 29, 2007 September 27, 2008 Net cash provided by (used in) continuing operations $ 18,936 $ 1,999 $ (2,017 ) $ 26,936 Net cash provided by discontinued operations 9,232 3,020 33,780 1,126 Net cash provided by operating activities $ 28,168 $ 5,019 $ 31,763 $ 28,062 Net cash provided by (used in) investing activities 2,972 (24,155 ) (29,762 ) (29,599 ) Net cash used in investing activities, discontinued operations (32 ) (37 ) (190 ) (193 ) Net cash provided by (used in) investing activities $ 2,940 $ (24,192 ) $ (29,952 ) $ (29,792 ) Net cash provided by (used in) financing activities (56,138 ) 5 14,385 (3,282 ) Effect of exchange rate changes on cash and cash equivalents 253 (96 ) 408 (627 ) Changes in cash and cash equivalents $ (24,777 ) $ (19,264 ) $ 16,604 $ (5,639 ) Cash and cash equivalents, beginning of period 175,348 164,196 133,967 150,571 Cash and cash equivalents, end of period $ 150,571 $ 144,932 $ 150,571 $ 144,932 Short-term and long-term investments 19,339 6,149 19,339 6,149 Restricted cash - 35,000 - 35,000 Total Cash, cash equivalents, restricted cash and short-term $ 169,910 $ 186,081 $ 169,910 $ 186,081 investments

KULICKE & SOFFA INDUSTRIES, INC. OPERATING RESULTS BY BUSINESS SEGMENT (In thousands) (Unaudited) Fiscal 2008: Three months ended September 27, 2008: Equipment Packaging Consolidated Segment Materials Segment Net revenue $ 46,958 $ 14,272 $ 61,230 Cost of sales 28,949 7,415 36,364 Gross profit 18,009 6,857 24,866 Operating expenses 31,234 5,753 36,987 Income (loss) from continuing operations $ (13,225 ) $ 1,104 $ (12,121 ) Fiscal year ended September 27, 2008: Net revenue $ 271,019 $ 57,031 $ 328,050 Cost of sales 165,499 28,758 194,257 Gross profit 105,520 28,273 133,793 Operating expenses 122,302 26,971 149,273 U.S. pension plan termination 9,152 - 9,152 Income (loss) from continuing operations $ (25,934 ) $ 1,302 $ (24,632 ) Fiscal 2007: Three months ended September 29, 2007: Equipment Packaging Consolidated Segment Materials Segment Net revenue $ 136,645 $ 14,955 $ 151,600 Cost of sales 82,825 7,718 90,543 Gross profit 53,820 7,237 61,057 Operating expenses 29,521 6,063 35,584 Income from continuing operations $ 24,299 $ 1,174 $ 25,473 Fiscal year ended September 29, 2007: Net revenue $ 316,718 $ 53,808 $ 370,526 Cost of sales 188,055 27,035 215,090 Gross profit 128,663 26,773 155,436 Operating expenses 113,444 24,480 137,924 Income from continuing operations $ 15,219 $ 2,293 $ 17,512

KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES (In thousands, except share amounts) (Unaudited) Three months ended Three months ended Fiscal year ended Fiscal year ended September 29, September 27, September 29, September 27, 2007 2008 2007 2008 (GAAP results) Net revenue $ 151,600 $ 61,230 $ 370,526 $ 328,050 Gross profit 61,057 24,866 155,436 133,793 Income (loss) from operations 25,473 (12,121 ) 17,512 (24,632 ) Net income (loss) from continuing operations 25,360 (11,017 ) 18,856 (19,619 ) Weighted average shares outstanding, continuing operations Basic 53,546 53,621 56,221 53,449 Diluted 64,702 53,621 68,274 53,449 Net income (loss) per share from continuing operations Basic $ 0.47 $ (0.21 ) 0.34 (0.37 ) Diluted $ 0.40 $ (0.21 ) 0.29 (0.37 ) (Non-GAAP measures) Net revenue $ 151,600 $ 61,230 $ 370,526 $ 328,050 Gross profit 61,102 24,931 155,672 134,045 Income (loss) from operations 26,614 (11,310 ) 23,522 (9,889 ) Net income (loss) from continuing operations 23,928 (10,273 ) 17,092 (8,354 ) Weighted average shares outstanding, continuing operations Basic 53,546 53,621 56,221 53,449 Diluted 64,702 53,621 68,274 53,449 Net income (loss) per share from continuing operations Basic $ 0.45 $ (0.19 ) 0.30 $ (0.16 ) Diluted $ 0.37 $ (0.19 ) 0.27 $ (0.16 )

KULICKE & SOFFA INDUSTRIES, INC. OPERATING RESULTS BY BUSINESS SEGMENT - SUMMARY COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES (In thousands) (Unaudited) Packaging Equipment Materials Segment Segment Consolidated Fiscal 2008: Three months ended September 27, 2008: (GAAP results) Net revenue $ 46,958 $ 14,272 $ 61,230 Gross profit 18,009 6,857 24,866 Income (loss) from operations (13,225 ) 1,104 (12,121 ) (Non-GAAP measures) Net revenue $ 46,958 $ 14,272 $ 61,230 Gross profit 18,043 6,888 24,931 Income (loss) from operations (12,631 ) 1,321 (11,310 ) Fiscal year ended September 27, 2008: (GAAP results) Net revenue $ 271,019 $ 57,031 $ 328,050 Gross profit 105,520 28,273 133,793 Income (loss) from operations (25,934 ) 1,302 (24,632 ) (Non-GAAP measures) Net revenue $ 271,019 $ 57,031 $ 328,050 Gross profit 105,657 28,388 134,045 Income (loss) from operations (12,474 ) 2,585 (9,889 ) Fiscal 2007: Three months ended September 29, 2007: (GAAP results) Net revenue $ 136,645 $ 14,955 $ 151,600 Gross profit 53,820 7,237 61,057 Income from operations 24,299 1,174 25,473 (Non-GAAP measures) Net revenue $ 136,645 $ 14,955 $ 151,600 Gross profit 53,849 7,253 61,102 Income from operations 25,260 1,354 26,614 Fiscal year ended September 29, 2007: (GAAP results) Net revenue $ 316,718 $ 53,808 $ 370,526 Gross profit 128,663 26,773 155,436 Income from operations 15,219 2,293 17,512 (Non-GAAP measures) Net revenue $ 316,718 $ 53,808 $ 370,526 Gross profit 128,780 26,892 155,672 Income from operations 19,877 3,645 23,522

KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES (In thousands, except share amounts) (Unaudited) Three months ended Three months ended Fiscal year ended Fiscal year ended September 29, % of September 27, % of September 29, % of September 27, % of 2007 Revenue 2008 Revenue 2007 Revenue 2008 Revenue Net revenue (GAAP results) $ 151,600 $ 61,230 $ 370,526 $ 328,050 Net revenue (Non-GAAP measures) 151,600 61,230 370,526 328,050 Gross profit (GAAP results) 61,057 40.3 % 24,866 40.6 % 155,436 42.0 % 133,793 40.8 % - Equity-based compensation expense 45 65 236 252 Gross profit (Non-GAAP measures) 61,102 40.3 % 24,931 40.7 % 155,672 42.0 % 134,045 40.9 % Income (loss) from operations (GAAP results) 25,473 16.8 % (12,121 ) -19.8 % 17,512 4.7 % (24,632 ) -7.5 % - Equity-based compensation expense 1,097 770 5,850 5,405 - U.S. pension plan termination - - - 9,152 - Amortization of intangibles 44 41 160 186 Income (loss) from operations (Non-GAAP measures) 26,614 17.6 % (11,310 ) -18.5 % 23,522 6.3 % (9,889 ) -3.0 % Net income (loss) (GAAP results) 25,360 16.7 % (11,017 ) -18.0 % 18,856 5.1 % (19,619 ) -6.0 % - Equity-based compensation expense 1,097 770 5,850 5,405 - U.S. pension plan termination - - - 9,152 - Amortization of intangibles 44 41 160 186 - Gain on extinguishment of debt (2,802 ) - (2,802 ) (170 ) - Tax effect of non-GAAP adjustments 229 (67 ) (4,972 ) (3,308 ) Net income (loss) (Non-GAAP measures) 23,928 15.8 % (10,273 ) -16.8 % 17,092 4.6 % (8,354 ) -2.5 % Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP) Basic 53,546 53,621 56,221 53,449 Diluted 64,702 53,621 68,274 53,449 Net income (loss) per share from continuing operations (GAAP results) Basic $ 0.47 $ (0.21 ) $ 0.34 $ (0.37 ) Diluted $ 0.40 $ (0.21 ) $ 0.29 $ (0.37 ) Adjustments to net income per share Basic $ (0.02 ) $ 0.02 $ (0.04 ) $ 0.21 Diluted $ (0.03 ) $ 0.02 $ (0.02 ) $ 0.21 Net income (loss) per share from continuing operations (Non-GAAP measures) Basic $ 0.45 $ (0.19 ) $ 0.30 $ (0.16 ) Diluted $ 0.37 $ (0.19 ) $ 0.27 $ (0.16 )

KULICKE & SOFFA INDUSTRIES, INC. OPERATING RESULTS BY BUSINESS SEGMENT RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES (In thousands) (Unaudited) Packaging Equipment % of Materials % of Segment Revenue Segment Revenue Consolidated Fiscal 2008: Three months ended September 27, 2008: Net revenue (GAAP results) 46,958 14,272 61,230 Net revenue (Non-GAAP measures) 46,958 14,272 61,230 Gross profit (GAAP results) 18,009 38.4 % 6,857 48.0 % 24,866 - Equity-based compensation expense 34 31 65 Gross profit (Non-GAAP measures) 18,043 38.4 % 6,888 48.3 % 24,931 Income (loss) from operations (GAAP results) (13,225 ) -28.2 % 1,104 7.7 % (12,121 ) - Equity-based compensation expense 553 217 770 - Amortization of intangibles 41 - 41 Income (loss) from operations (Non-GAAP measures) (12,631 ) -26.9 % 1,321 9.3 % (11,310 ) Fiscal 2007: Three months ended September 29, 2007: Net revenue (GAAP results) 136,645 14,955 151,600 Net revenue (Non-GAAP measures) 136,645 14,955 151,600 Gross profit (GAAP results) 53,820 39.4 % 7,237 48.4 % 61,057 - Equity-based compensation expense 29 16 45 Gross profit (Non-GAAP measures) 53,849 39.4 % 7,253 48.5 % 61,102 Income from operations (GAAP results) 24,299 17.8 % 1,174 7.9 % 25,473 - Equity-based compensation expense 917 180 1,097 - Amortization of intangibles 44 - 44 Income from operations (Non-GAAP measures) 25,260 18.5 % 1,354 9.1 % 26,614 Fiscal 2008: Fiscal year ended September 27, 2008: Net revenue (GAAP results) 271,019 57,031 328,050 Net revenue (Non-GAAP measures) 271,019 57,031 328,050 Gross profit (GAAP results) 105,520 38.9 % 28,273 49.6 % 133,793 - Equity-based compensation expense 137 115 252 Gross profit (Non-GAAP measures) 105,657 39.0 % 28,388 49.8 % 134,045 Income (loss) from operations (GAAP results) (25,934 ) -9.6 % 1,302 2.3 % (24,632 ) - Equity-based compensation expense 4,122 1,283 5,405 - U.S. pension plan termination 9,152 - 9,152 - Amortization of intangibles 186 - 186 Income (loss) from operations (Non-GAAP measures) (12,474 ) -4.6 % 2,585 4.5 % (9,889 ) Fiscal 2007: Fiscal year ended September 29, 2007: Net revenue (GAAP results) 316,718 53,808 370,526 Net revenue (Non-GAAP measures) 316,718 53,808 370,526 Gross profit (GAAP results) 128,663 40.6 % 26,773 49.8 % 155,436 - Equity-based compensation expense 117 119 236 Gross profit (Non-GAAP measures) 128,780 40.7 % 26,892 50.0 % 155,672 Income from operations (GAAP results) 15,219 4.8 % 2,293 4.3 % 17,512 - Equity-based compensation expense 4,499 1,351 5,850 - Amortization of intangibles 160 - 160 Income from operations (Non-GAAP measures) 19,877 6.3 % 3,645 6.8 % 23,522

SOURCE: Kulicke & Soffa Industries, Inc.

FD Geoff Grande, CFA 617-747-1721 Fax: 617-747-1711 geoff.grande@fd.com or Kulicke & Soffa Tom Johnson Director -- Investor Relations & Corporate Communications 215-784-6411 Fax: 215-784-6167 tjohnson@kns.com