BE Semiconductor Industries N.V.

Earnings Release • Jul 26, 2012

PRESS RELEASE

Besi Reports 55.9% Sequential Revenue Increase and € 10.0 Million Net Profit in Q2-12. Results Exceed Expectations

Duiven, the Netherlands, July 26, 2012 - BE Semiconductor Industries N.V. ("the Company" or "Besi") (NYSE Euronext: BESI; OTCQX: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the second quarter ended June 30, 2012.

Key Highlights

• Revenue of € 87.0 million up 55.9% vs. Q1-12 and above prior guidance. Down 3.2% vs. Q2-11
• Orders rose 8.2% to € 91.1 million vs. Q1-12 continuing positive trend. Up 10.4% vs. Q2-11. Particular strength in packaging and die bonding bookings by Asian subcontractors for advanced packaging applications
• Gross margins increase to 41.5% vs. 39.4% in Q1-12 (41.2% Q2-11) due to improved die attach and packaging gross margins and benefit of higher US dollar vs. euro and Swiss franc. Exceeds guidance
• Net income increases to € 10.0 million in Q2-12 vs. € 0.2 million in Q1-12 (€ 8.8 million in Q2-11) due primarily to higher sales, improved gross margins and operating leverage resulting from cost control efforts

	Q2-	Q1-		Q2-
(€ millions, except EPS)	2012	2012	Δ	2011	Δ
Revenue	87.0	55.8	55.9%	89.9	-3.2%
Operating income	13.1	2.4	445.8%	12.0	9.2%
EBITDA	16.1	5.2	209.6%	14.8	8.8%
Net income	10.0	0.2	4900%	8.8	13.6%
EPS (diluted)	0.27	0.01	2600%	0.25	8.0%
Orders	91.1	84.2	8.2%	82.5	10.4%
Backlog	83.2	79.1	5.2%	66.3	25.5%
Cash flow (deficit) from ops.	(12.4)	12.0	NM	8.9	NM
Cash	77.3	93.5	-17.3%	61.8	25.1%
Total Debt	27.9	23.1	20.8%	16.1	73.3%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "Our Q2-12 results delivered revenue and profit growth which exceeded expectations. Increased customer demand for advanced packaging applications translated into 55.9% sequential revenue growth in Q2-12 and we achieved a net profit of € 10.0 million. Further, the large revenue and earnings progress from just a quarter ago shows the improved scalability and profitability of our business model. In addition, we produced a record 85% of our systems in Asia in Q2-12 which was instrumental in meeting the quarterly revenue ramp.

Q2-12 profitability was enhanced by strong sales growth by our multi module, flip chip and epoxy die bonding systems, gross margins that exceeded expectations due to a more favorable product mix and operating leverage gained by our ongoing cost control efforts. Profits also increased by 13.6% as compared to Q2-11 despite a 3.2% year over year revenue decrease.

Besi's business outlook has improved this year to date due to more favorable industry conditions and our strategic positioning in advanced packaging applications, particularly for smart phones and tablets. Continued sequential order growth of 8.2% in Q2-12 reflected the strength and balance of our product portfolio as we continue to gain traction with leading edge component manufacturers. Shrinking device geometries and more complex functionality will help accelerate demand for our substrate and wafer level packaging solutions in the future.

Current market feedback indicates renewed caution by customers amidst softening demand for semiconductors and electronic components given continued global economic uncertainties. As a result, we anticipate that revenue will be flat to down 10% in Q3-12 vs. Q2-12. In the meantime, we continue to focus strategically on improving efficiency and profitability by means of reducing our euro based cost structure and achieving cost savings from our global supply chain organization."

Second Quarter Results of Operations

Besi's € 31.2 million (55.9%) sequential revenue increase in Q2-12 was broad based across all product groups but reflected particular strength in sales of multi module, flip chip and epoxy die bonding systems for advanced packaging applications. The increase was better than prior guidance (increase of 50.0%) due to higher than anticipated shipments of multi module and epoxy die bonders. Revenue in Q2-12 decreased by € 2.9 million (3.2%) vs. Q2-11 due primarily to lower packaging and wire bonding system sales.

Orders for Q2-12 were € 91.1 million, an increase of € 6.9 million (8.2%), as compared to Q1-12 and an increase of € 8.6 million (10.4%) as compared to Q2-11. The quarterly sequential order increase was primarily due to higher bookings by Asian subcontractors for die bonding and packaging systems in advanced packaging applications. On a customer basis, the sequential order increase in Q2-12 reflected a € 3.7 million (7.2%) increase by subcontractors and a € 3.2 million (9.7%) increase by IDMs. Backlog at June 30, 2012, was € 83.2 million, an increase of € 4.1 million, or 5.2%, as compared to March 31, 2012 and € 16.9 million, or 25.5% as compared to Q2-11.

Besi's gross margin for Q2-12 was 41.5% as compared to 39.4% in Q1-12 and 41.2% in Q2-11 and exceeded guidance (39%-41%). As compared to Q1-12, the gross margin increase was primarily due to higher die attach and packaging gross margins due to higher unit volumes and lower unit manufacturing costs and, to a lesser extent, foreign exchange benefits from the increase in the US dollar vs. the euro and Swiss franc. As compared to Q2-11, the gross margin improvement was due primarily to lower production headcount and foreign exchange benefits from the increase in the US dollar vs. the euro and Swiss franc partially offset by higher expenses to support the Asian production ramp of our epoxy die bonding system.

Besi's operating expenses were € 23.0 million in Q2-12 as compared to € 19.6 million in Q1-12 and € 25.0 million in Q2-11 and were within guidance (€ 22.7 - € 23.7 million). As compared to Q1-12, the increase was primarily due to (i) € 1.4 million of higher selling expenses primarily related to increased travel, freight and accrued bonuses from higher sales activities and (ii) € 1.5 million of higher general and administrative expenses primarily due to the absence of a € 1 million benefit provision in Q1-12 and higher severance expense. As compared to Q2-11, operating expenses declined by € 2.0 million primarily due to lower warranty and, to a lesser extent, lower service and development expenses. As a percentage of revenue, total operating expenses were 26.5% in Q2-12 as compared to 35.1% in Q1-12 and 27.9% in Q2-11.

Financial income (expense), net reflected income of € 0.6 million in Q2-12 as compared to expense of € 0.9 million in Q1-12 and income of € 0.2 million in Q2-11. The increase as compared to Q1-12 was due primarily to gains on foreign currency hedging contracts from the upward movement of the US dollar vs. the euro and Swiss franc as compared to losses incurred in Q1-12.

Besi's net income in Q2-12 was € 10.0 million as compared to € 0.2 million in Q1-12 and € 8.8 million in Q2-11. The € 9.8 million profit increase vs. Q1-12 was due primarily to (i) significantly higher revenue and gross margin levels, (ii) lower operating expenses relative to revenue, (iii) a positive variance in financial income (expense), net and (iv) a lower effective tax rate. As compared to Q2-11, the € 1.2 million profit increase was primarily due to higher gross margins and lower operating expenses despite a 3.2% revenue decrease primarily as a result of lower headcount levels, foreign exchange benefits and ongoing cost control efforts.

Half Year Results of Operations 2012/2011

For H1-12, Besi's revenue decreased by € 38.2 million or 21.1% to € 142.8 million as compared to H1-11. The decline was across the portfolio but primarily focused on lower die attach shipments for mainstream electronics applications given global economic uncertainties in H2-11. In contrast, orders for H1-12 were € 175.4 million, up by € 4.6 million, or 2.7%, as compared to H1-11 reflecting improved industry conditions and increased demand for Besi's advanced packaging systems for tablet and smart phone end user applications.

For H1-12, Besi recorded net income of € 10.2 million (€ 0.28 per share) vs. € 18.4 million (€ 0.54 per share) for H1-11. The H1-12 profit reduction was due primarily to (i) significantly lower revenue and (ii) a higher effective tax rate (33.0% vs. 24.5%) due to the change in the profit mix of its European subsidiaries partially offset by a 14.3% reduction in selling, general and administrative expenses and lower production headcount due to Besi's cost control efforts.

Financial Condition

At the end of Q2-12, Besi's cash and cash equivalents declined to € 77.3 million, a decrease of € 16.2 million vs. Q1-12 while total debt and capital leases increased sequentially by € 4.8 million to € 27.9 million. As a result, net cash decreased by € 21.0 million to € 49.4 million. The net cash reduction in Q2-12 was necessary to finance a € 33.0 million sequential quarterly increase in accounts receivable and a € 5.0 million increase in inventories related

to its 55.9% revenue growth and continued order ramp in H1-12. Besi generated € 15.8 million of cash flow from operations (before changes in working capital) in Q2-12 which along with € 4.7 million of bank borrowings and cash on hand were primarily utilized to fund (i) a € 28.2 million increase in working capital (ii) € 5.1 million of cash dividend payments, (iii) € 3.2 million of capitalized development spending and (iv) € 1.1 million of capital expenditures.

Outlook

Based on its June 30, 2012 backlog and feedback from customers, Besi forecasts for Q3-12 that:

• Revenue will be flat to down 10% from the € 87.0 million reported in Q2-12.
• Gross margins will range between 40% 42% as compared to 41.5% realized in Q2-12.
• Operating expenses will be comparable to the € 23.0 million reported in Q2-12.
• Capital expenditures will be approximately € 2.0 million as compared to € 1.1 million in Q2-12.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 4:00 p.m. CET (10:00 a.m. New York time). The dial-in number for the conference call is (31) 10 2944 215. To access the audio webcast, please visit www.besi.com.

About Besi

Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, computer, automotive, industrial, RFID, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi's ordinary shares are listed on NYSE Euronext Amsterdam (symbol: BESI) and OTCQX International (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Contacts:

Richard W. Blickman Cor te Hennepe Tel. (31) 26 319 4500 Tel. (31) 26 319 4500

Citigate First Financial Uneke Dekkers/Frank Jansen Tel. (31) 20 575 4021 / 24 Uneke.Dekkers@citigateff.nl Frank.Jansen@citigateff.nl

President & CEO Senior Vice President Finance investor.relations@besi.com investor.relations@besi.com

Caution Concerning Forward Looking Statements

This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, backlog, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as "anticipate", "estimate", "expect", "can", "intend", "believes", "may", "plan", "predict", "project", "forecast", "will", "would", and similar expressions are intended to identify forward looking statements, although not all forward looking statements contain these identifying words. The financial guidance set forth under the heading "Outlook" constitutes forward looking statements. While these forward looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward looking statements, including our inability to maintain continued demand for our products; the impact on our business of potential disruptions to European economies from euro zone sovereign credit issues; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; failure to adequately decrease costs and expenses as revenues decline, loss of significant customers, lengthening of the sales cycle, incurring additional restructuring charges in the future, acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2011 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

Consolidated Statements of Operations

(euro in thousands, except share and per share data)

		Three Months Ended June 30, (unaudited)	Six Months Ended June 30, (unaudited)
	2012	2011	2012	2011
Revenue Cost of sales	86,995 50,855	89,866 52,858	142,792 84,658	180,945 107,543
Gross profit	36,140	37,008	58,134	73,402
Selling, general and administrative expenses Research and development expenses	16,069 6,944	17,684 7,363	29,305 13,319	34,183 13,750
Total operating expenses	23,013	25,047	42,624	47,933
Operating income (loss)	13,127	11,961	15,510	25,469
Financial expense (income), net	(618)	(233)	253	1,115
Income (loss) before taxes	13,745	12,194	15,257	24,354
Income tax expense (benefit)	3,736	3,355	5,040	5,965
Net income (loss)	10,009	8,839	10,217	18,389
Net income (loss) per share – basic Net income (loss) per share – diluted	0.27 0.27a	0.25 0.25	0.28 0.28a	0.54 0.54
Number of shares used in computing per share amounts: - basic - diluted	37,370,247 37,400,765a	35,374,199 35,374,199	37,028,658 37,385,166a	34,647,654 34,647,654

a The calculation of the diluted income per share assumes the exercise of the equity settled share based payments.

(euro in thousands)	June 30,	March 31,	December 31,
	2012	2012	2011
	(unaudited)	(unaudited)	(audited)
ASSETS
Cash and cash equivalents	77,272	93,539	87,484
Accounts receivable	92,920	59,909	66,728
Inventories	79,470	74,445	73,348
Income tax receivable	788	997	989
Other current assets	10,511	9,474	8,102
Total current assets	260,961	238,364	236,651
Property, plant and equipment	25,744	25,755	26,506
Goodwill	44,247	43,770	44,062
Other intangible assets	31,264	29,634	27,818
Deferred tax assets	12,821	12,771	12,506
Other non-current assets	1,450	1,438	1,372
Total non-current assets	115,526	113,368	112,264
Total assets	376,487	351,732	348,915
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks	26,033	22,080	23,749
Current portion of long-term debt and
financial leases	468	184	336
Accounts payable	34,465	22,605	21,377
Accrued liabilities	36,126	34,793	32,222
Total current liabilities	97,092	79,662	77,684
Other long-term debt and financial
leases	1,403	807	695
Deferred tax liabilities	7,024	7,043	7,046
Other non-current liabilities	8,329	8,190	7,427
Total non-current liabilities	16,756	16,040	15,168
Total equity	262,639	256,030	256,063
Total liabilities and equity	376,487	351,732	348,915

(euro in thousands)	Three Months Ended	June 30,	Six Months Ended June 30,
		(unaudited)		(unaudited)
	2012	2011	2012	2011
Cash flows from operating activities:
Operating income	13,127	11,961	15,510	25,469
Depreciation and amortization Share based compensation expense Other non-cash items	2,943 68 -	2,796 1,041 -	5,757 (241) 1	5,568 1,758 (37)
Changes in working capital Income tax received (paid) Interest received (paid)	(28,205) (330) (20)	(6,664) (89) (150)	(20,978) (502) (8)	(21,173) (180) (1,023)
Net cash provided by (used in) operating activities	(12,417)	8,895	(461)	10,382
Cash flows from investing activities: Capital expenditures Capitalized development expenses Proceeds from sale of equipment	(1,063) (3,178) -	(2,286) (2,328) -	(1,669) (6,441) -	(3,806) (3,870) 40
Net cash used in investing activities	(4,241)	(4,614)	(8,110)	(7,636)
Cash flows from financing activities: Proceeds from (payments of) bank lines of credit Proceeds from (payments of) debt and financial leases Dividend paid to shareholders	4,135 595 (5,093)	(1,834) (499) (5,097)	2,267 708 (5,093)	(1,888) (846) (5,097)
Purchase Treasury Shares	-	(1,496)	(109)	(1,496)
Net cash provided by (used in) financing activities	(363)	(8,926)	(2,227)	(9,327)
Net increase/(decrease) in cash and cash equivalents Effect of changes in exchange rates on cash and	(17,021)	(4,645)	(10,798)	(6,581)
cash equivalents	754	908	586	(918)
Cash and cash equivalents at beginning of the period	93,539	65,543	87,484	69,305
Cash and cash equivalents at end of the period	77,272	61,806	77,272	61,806

Consolidated Cash Flow Statements

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE	Q1-2011		Q2-2011 Q3-2011			Q4-2011		Q1-2012		Q2-2012
Per geography:
Asia Pacific	66.8	73%	64.5	72%	57.4	76%	54.7	78%	41.3	74%	65.2	75%
Europe and ROW	18.0	20%	18.3	20%	11.4	15%	11.8	17%	8.4	15%	10.4	12%
USA	6.3	7%	7.1	8%	6.8	9%	3.8	5%	6.1	11%	11.3	13%
Total	91.1	100%	89.9	100%	75.6	100%	70.4	100%	55.8	100%	87.0	100%
ORDERS	Q1-2011		Q2-2011		Q3-2011		Q4-2011		Q1-2012		Q2-2012
Per geography:
Asia Pacific	64.2	73%	60.5	73%	58.5	78%	37.5	68%	66.4	79%	67.4	74%
Europe and ROW	17.4	20%	13.9	17%	12.1	16%	9.5	17%	11.2	13%	15.5	17%
USA	6.7	7%	8.1	10%	4.5	6%	8.2	15%	6.6	8%	8.2	9%
Total	88.3	100%	82.5	100%	75.1	100%	55.2	100%	84.2	100%	91.1	100%
Per customer type:
IDM	41.5	47%	36.3	44%	24.3	32%	21.5	39%	33.1	39%	36.3	40%
Subcontractors	46.8	53%	46.2	56%	50.8	68%	33.7	61%	51.1	61%	54.8	60%
Total	88.3	100%	82.5	100%	75.1	100%	55.2	100%	84.2	100%	91.1	100%
BACKLOG	Mar 31, 2011		Jun 30, 2011		Sep 30, 2011		Dec 31, 2011		Mar 31, 2012		Jun 30, 2012
Backlog	73.7		66.3		65.8		50.6		79.1		83.2
											Jun 30, 2012
HEADCOUNT	Mar 31, 2011		Jun 30, 2011		Sep 30, 2011		Dec 31, 2011		Mar 31, 2012
Fixed staff
Europe	698	46%	703	45%	709	45%	695	45%	670	44%	671	44%
Asia Pacific	774	51%	815	52%	814	52%	802	52%	799	53%	817	53%
USA	45	3%	45	3%	46	3%	46	3%	46	3%	47	3%
Total	1,516	100%	1,563	100%	1,570	100%	1,543	100%	1,515	100%	1,535	100%
Temporary staff
Europe	58	28%	72	35%	79	38%	46	72%	44	42%	54	39%
Asia Pacific	150	71%	129	64%	122	60%	16	25%	56	55%	79	57%
USA	2	1%	2	1%	4	2%	$\overline{2}$	3%	3	3%	6	4%
Total	210	100%	203	100%	205	100%	64	100%	103	100%	139	100%
Total fixed and temporary staff	1,726		1,766		1,775		1,607		1,618		1,674
OTHER FINANCIAL DATA	Q1-2011		Q2-2011			Q3-2011		Q4-2011		Q1-2012		02-2012
Gross profit:	36.4	40.0%	37.0	41.2%	30.3	40.0%	27.1	38.5%	22.0	39.4%	36.1	41.5%
Amortization of intangibles					٠
Restructuring charges	٠		ä,		ä				L		ä,
Total	36.4	40.0%	37.0	41.2%	30.3	40.0%	27.1	38.5%	22.0	39.4%	36.1	41.5%
Selling, general and admin expenses:
SG&A expenses	16.0	17.6%	17.2	19.1%	16.0	21.2%	16.8	23.9%	12.6	22.6%	15.5	17.8%
Amortization of intangibles	0.5	0.5%	0.5	0.6%	0.5	0.7%	0.5	0.7%	0.6	1.0%	0.6	0.6%
Restructuring charges			ä,		ä,		0.7	1.1%	0.0		0.0
Total	16.5	18.1%	17.7	19.7%	16.5	21.8%	18.0	25.6%	13.2	23.6%	16.1	18.5%
Research and development expenses:	6.8		8.6		8.0		8.2		8.5		8.9
R&D expenses Capitalization of R&D charges	(1.5)	7.5% $-1.6%$	(2.3)	9.6% $-2.6%$	(2.1)	10.6% $-2.8%$	(2.7)	11.7% $-3.8%$	(3.3)	15.2% $-5.8%$	(3.2)	10.2% $-3.7%$
Amortization of intangibles	1.1	1.2%	1.1	1.2%	1.1	1.4%	1.1	1.5%	1.2	2.1%	1.2	1.4%
Restructuring charges	$\overline{\phantom{a}}$		×		$\overline{\phantom{a}}$		٠		٠		$\overline{\phantom{a}}$
Total	6.4	7.0%	7.4	8.2%	7.0	9.2%	6.6	9.3%	6.4	11.4%	6.9	7.9%
Financial expense (income), net: Interest expense (income), net	0.6		(0.1)		0.1		0.1		0.0		0.1
Foreign exchange (gains) \losses	0.7		(0.1)		0.1		(1.3)		0.9		(0.7)
Total	1.3		(0.2)		0.2		(1.2)		0.9		(0.6)
Operating income (loss)
as % of net sales	13.5	14.8%	12.0	13.3%	6.7	8.8%	2.5	3.6%	2.4	4.3%	13.1	15.1%
EBITDA
as % of net sales	16.3	17.9%	14.8	16.5%	9.5	12.6%	5.3	7.5%	5.2	9.3%	16.1	18.5%
Net income (loss)
as % of net sales	9.6	10.5%	8.8	9.8%	4.9	6.4%	3.4	4.8%	0.2	0.4%	10.0	11.5%
Income per share
Basic	0.28		0.25		0.13		0.09		0.01		0.27
Diluted	0.26		0.25		0.13		0.09		0.01		0.27