BE Semiconductor Industries N.V.

Earnings Release • Jul 26, 2007

FOR: BE SEMICONDUCTOR INDUSTRIES N.V. Ratio 6 6921 RW Duiven, The Netherlands

PRESS RELEASE

BE Semiconductor Industries Reports 2007 Second Quarter Results

Duiven, the Netherlands, July 26, 2007, BE Semiconductor Industries N.V. ("the Company" or "Besi") (Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its financial results for the second quarter ended June 30, 2007.

Summary

Revenue for the second quarter of 2007 was € 41.2 million, representing a decrease of 17.3% as compared to revenue of € 49.8 million in the second quarter of 2006 and a decrease of 9.5% as compared to revenue of € 45.5 million in the first quarter of 2007.

Besi recorded a net loss for the second quarter of 2007 of € 4.7 million or € 0.14 per basic and diluted share, compared to net income of € 4.8 million, or € 0.15 and € 0.13 per basic and diluted share, respectively, in the comparable 2006 period. In the second quarter of 2007, Besi recorded after-tax charges of € 2.9 million or € 0.09 per basic and diluted share, related to an operational restructuring announced in June 2007. Net income for the first quarter of 2007 was € 1.6 million or € 0.05 per basic and diluted share which included an after-tax benefit of € 1.2 million or € 0.04 per basic and diluted share, net of interest charges, due to a favorable tax settlement with Dutch fiscal authorities.

Operational Restructuring

On June 18, 2007, Besi announced a corporate restructuring focused on the consolidation of certain global manufacturing and sales and service activities in order to streamline its operations, reduce subsidiary overhead and improve profitability. The new organization structure will also facilitate the adoption of common system platforms offering the potential to significantly improve Besi's operating efficiency and working capital management in the future. The Company anticipates that the restructuring will generate potential annual pre tax cost savings of approximately € 6 million commencing in 2008. At present, Besi anticipates that it will incur pre tax charges not exceeding approximately € 5 million in connection with the restructuring, of which approximately € 3.3 million was recorded in the second quarter of 2007 and the remainder of which is expected to be incurred during the third and fourth quarters of 2007.

Results of Operations Second Quarter 2007/2006

The 17.3% revenue decline in the second quarter of 2007 as compared to the second quarter of 2006 was due primarily to a decrease in packaging equipment sales for leadframe applications and die bonding equipment for array connect applications partially offset by increased sales of RFID plating equipment for array connect applications. Compared to the first quarter of 2007, Besi's 9.5% revenue decrease in the second quarter of 2007 was primarily due to lower sales of packaging and singulation equipment for array connect applications. Such decrease was below the Company's revised guidance of June 18, 2007 (down 5%) due primarily to customer push-outs in the final weeks of packaging equipment orders scheduled for delivery in the second quarter of 2007 until the third quarter of 2007.

Orders for the second quarter of 2007 were € 42.1 million, a decrease of 9.5% as compared to the second quarter of 2006 primarily due to continued industry weakness related to customer caution in managing inventory levels and capital budgets in the face of an uncertain semiconductor environment. Such conditions commenced in the second quarter of 2006. However, bookings increased by € 0.3 million in the second quarter of 2007 as compared to the first quarter of 2007 and were significantly higher than Besi's revised guidance of June 18, 2007 (down 10-15%) primarily as a result of higher than anticipated orders received in the final weeks of the quarter for die bonding and molding systems. On a customer basis, bookings in the second quarter of 2007 as compared to the first quarter of 2007 reflected a 2.9% increase in orders by IDMs and a 2.3% decrease in orders by subcontractors.

Backlog at June 30, 2007 was € 51.2 million as compared to € 50.3 million at March 31, 2007, representing an increase of 1.8%. Approximately 63% and 37% of backlog at June 30, 2007 was represented by array connect and leadframe assembly applications, respectively. The Company's book-to-bill ratio was 1.02 in the second quarter of 2007 as compared to 0.93 in the second quarter of 2006 and 0.92 in the first quarter of 2007.

Besi's gross margin for the second quarter of 2007 was 29.2% as compared to 40.8% in the second quarter of 2006 and 36.6% in the first quarter of 2007 due primarily to (i) charges of € 2 million (4.9 gross margin points) related to headcount reductions, inventory write-offs and the write-down of patents associated with Besi's operational restructuring, (ii) lower sales and gross margins realized for die sorting, singulation and plating systems sold for array connect applications partially offset by higher gross margins realized on packaging equipment sales and (iii) adverse movements in the relationship of the US dollar versus the euro and Malaysian ringgit. Excluding the impact of restructuring charges in the second quarter of 2007, Besi's gross margin was 34.1%, below initial guidance for the second quarter of 2007 of 35.5%-37.5%.

Besi's operating expenses were € 16.9 million in the second quarter of 2007 as compared to € 15.7 million recorded in the second quarter of 2006 and the first quarter of 2007. However, the Company's operating expenses in the second quarter of 2007 included charges aggregating approximately € 1.3 million related to headcount reductions and the write-off of trademarks and leasehold improvements in connection with Besi's organizational restructuring.

Financial Condition

At June 30, 2007, cash and cash equivalents increased to € 101.7 million as compared to € 93.9 million at March 31, 2007. Total debt and capital leases increased from € 80.5 million at March 31, 2007 to € 92.1 million at June 30, 2007. The € 3.9 million decline in Besi's net cash position during the quarter was primarily due to net losses incurred in the period, increased capital spending related to the build-out of its corporate data center and a significant reduction of payables, partially offset by a reduction in inventory levels at its Asian operations.

Comments

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "The second quarter of 2007 reflected a significant turning point in the development of the Company. As indicated in our last quarterly update, we recognized the need this spring to fundamentally re-organize our operations to achieve significantly higher profit margins in the context of an increasingly competitive and global assembly equipment market. As such, we took the difficult steps to consolidate operations and service functions globally, to reduce the number of product line organizations within the company and to encourage the development of common platforms through which to produce more efficiently in the future. During the second quarter, we recorded restructuring charges of € 3.3 million which when combined with lower than anticipated sales and gross margins from die sorting, singulation and plating systems and adverse currency movements, pushed us into a loss position. Our die sorting and singulation sales were adversely affected on a near term basis by our restructuring activities.

On the positive side, sales of our die bonding equipment were within initial expectations for the quarter and order growth was significantly higher than we had anticipated, particularly for die bonding and packaging equipment. In addition, we continue to evaluate our operations to identify areas for future cost reductions, particularly in the areas of supply chain management and in our global manufacturing."

Mr. Blickman continued: "In general, we see an industry picture currently which has stabilized and is showing signs of improvement versus the second half of 2006. In this regard, many leading industry analysts such as VLSI Research and SEMI have recently increased their growth estimates for 2007 as compared to initial indications of an industry contraction at the start of the year. For our part, Besi experienced a 2.1% increase in orders in the first half of 2007 in comparison to the second half of 2006 although orders are still down by 21% as compared to the first half of 2006.

Outlook

Based on its current backlog and feedback from customers, Besi expects that revenues and orders in the third quarter of 2007 will increase by 0-5% in comparison to their respective levels in the second quarter of 2007. The Company expects that its gross margins will range between 35-37% in the third quarter of 2007 as compared to 34.1% realized in the second quarter of 2007 prior to the impact of restructuring charges. In addition, operating expenses (excluding restructuring charges) for the third quarter of 2007 are expected to be approximately equal to the € 15.7 million reported in the second quarter of 2007. Including anticipated restructuring charges of approximately € 1.0 million, Besi anticipates recording a net loss for the third quarter of 2007. Capital expenditures are forecast to be approximately € 1.1 million in the third quarter of 2007 as compared to € 1.3 million in the second quarter of 2007.

Investor Conference Call

Besi will host a conference call to discuss its operating results for the first quarter ended June 30, 2007 on Thursday, July 26, 2007 at 4:00 p.m. Continental European Time (3:00 p.m. London Time, 10:00 a.m. New York Time). Interested participants may call (31) 20 531 5856 for the teleconference. A replay of the call will be available approximately one hour after the end of the call through Thursday August 2, 2007. To access the replay, please dial (31) 70 315 4300 and use the pass code 142 006#.

About BE Semiconductor Industries N.V.

BE Semiconductor Industries N.V. designs, develops, manufactures, markets and services die sorting, flip chip and multi-chip die bonding, packaging and plating equipment for the semiconductor industry's

assembly operations. Its customers consist primarily of leading U.S., European, Asian, Korean and Japanese semiconductor manufacturers and subcontractors which utilize its products for both array connect and conventional leadframe manufacturing processes. For more information about Besi, please visit our website at www.besi.com.

Caution Concerning Forward Looking Statements

This press release contains forward-looking statements, which are found in various places throughout the press release, including 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 words "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 future 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 our expectations. These factors include, but are not limited to, those listed or discussed in Besi's Annual Report for the year ended December 31, 2006, as well as 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; acts of terrorism and violence; overall global economic conditions; 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 expanding and more diverse operations; 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.

Contacts:

Richard W. Blickman Cor te Hennepe President & CEO Director of Finance

Tel. (31) 26 319 4500 Tel. (31) 26 319 4500 investor.relations@besi.nl investor.relations@besi.nl

(euro in thousands, except share and per share data)		Three Months Ended June 30, (unaudited)	Six Months Ended June 30, (unaudited)
	2006	2007	2006	2007
Revenue Cost of sales	49,794 29,482	41,168 29,130	94,322 57,486	86,668 57,996
Gross profit	20,312	12,038	36,836	28,672
Selling, general and administrative expenses Research and development expenses	11,127 4,612	11,276 5,639	20,934 8,790	21,117 11,543
Total operating expenses	15,739	16,915	29,724	32,660
Operating income (loss)	4,573	(4,877)	7,112	(3,988)
Other income Financial expenses, net	1,216 (1,032)	- (570)	1,216 (1,967)	- (1,441)
Income (loss) before taxes Income tax expense (benefit)	4,757 (7)	(5,447) (717)	6,361 314	(5,429) (2,276)
Net income (loss)	4,764	(4,730)	6,047	(3,153)
Net income (loss) per share – basic Net income (loss) per share – diluted	0.15 0.13	(0.14) (0.14)	0.18 0.17	(0.10) (0.10)
Number of shares of shares used in computing per share amounts: - basic - diluted	32,762,932 41,883,956 (1)	32,884,246 32,884,246 (2)	32,750,638 41,838,703 (1)	32,833,243 32,833,243 (2)

Consolidated Statements of Operations

(1) The calculation of diluted income per share assumes conversion of the Company's 5.5% outstanding convertible notes due 2012 into 8,975,610 ordinary shares, which would have a dilutive effect.

(2) The calculation of diluted income (loss) per share does not assume conversion of the Company's 5.5% outstanding convertible notes due 2012 into 8,975,610 ordinary shares, which would have an anti-dilutive effect.

The financial information has been prepared in accordance with IFRS.

Pro Forma Consolidated Statements of Operations For Analysis Purposes Only

(euro in thousands, except share and per share data)	Three Months Ended June 30, 2007 (unaudited)
	As reported	Restructuring Adjustments	Pro Forma
Revenue Cost of sales	41,168 29,130	- 2,006 (a)	41,168 27,124
Gross profit	12,038	(2,006)	14,044
Selling, general and administrative expenses Research and development expenses	11,276	1,173(b)	10,103
	5,639	86	5,553
Total operating expenses	16,915	1,259	15,656
Operating income (loss)	(4,877)	(3,265)	(1,612)
Financial expenses, net	(570)	-	(570)
Income (loss) before taxes Income tax expense (benefit)	(5,447) (717)	(3,265) (354)(c)	(2,182) (363)
Net income (loss)	(4,730)	(2,911)	(1,819)
Net income (loss) per share – basic Net income (loss) per share – diluted	(0.15) (0.15)	(0.09) (0.09)(d)	(0.06) (0.06)
Number of shares of shares used in computing per share amounts: - basic - diluted	32,884,246 32,884,246 (d)	32,884,246 32,884,246 (d)	32,884,246 32,884,246 (d)

(a) Pro forma adjustments to cost of sales related to the restructuring include: (i) severance and social charges of € 0.4 million related to work force reduction, (ii) inventory write-offs of € 1.1 million associated with the common platform initiative at Fico Netherlands and Fico Asia and the transfer of production activities between Datacon and Laurier and (iii)

the write-down of patents of € 0.5 million related to the integration of Laurier and Datacon. (b) Pro forma adjustments to selling, general and administrative expenses include € 0.4 million of severance and social charges related to work force reduction, € 0.5 million related to lease termination costs and € 0.3 million related to the write-down of the value of Laurier's trademarks.

(c) Pro forma tax benefit assumed at effective tax rate of 11%.

(d) The calculation of diluted income (loss) per share does not assume conversion of the Company's 5.5% outstanding convertible notes due 2012 into 8,975,610 ordinary shares, which would have an anti-dilutive effect.

The financial information has been prepared in accordance with IFRS.

Consolidated Balance Sheets

(euro in thousands)	December 31,	March 31,2007	June 30, 2007
	2006	(unaudited)	(unaudited)
ASSETS
Cash and cash equivalents	98,012	93,900	101,667
Accounts receivable	36,530	37,561	37,897
Inventories	58,156	58,947	55,021
Other current assets	11,212	15,989	15,021
Total current assets	203,910	206,397	209,606
Assets held for sale	1,449	1,449	1,449
Property, plant and equipment	22,777	22,408	21,975
Goodwill	64,111	64,031	63,923
Other intangible assets	15,063	13,824	11,809
Other non-current assets	6,698	9,426	10,427
Total non-current assets	108,649	109,689	108,134
Total assets	314,008	317,535	319,189
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks Current portion of long-term debt	18,608	22,023	31,254
and capital leases	6,682	6,286	6,699
Accounts payable	15,463	17,007	11,485
Accrued liabilities	20,881	19,362	18,845
Total current liabilities	61,634	64,678	68,283
Convertible notes Other long-term debt and capital	42,284	42,451	42,618
leases	12,454	9,728	11,542
Deferred tax liabilities	331	1,672	1,060
Other non-current liabilities	2,774	2,865	2,926
Total non-current liabilities	57,843	56,716	58,146
Total equity	194,531	196,141	192,760
Total liabilities and equity	314,008	317,535	319,189

The financial information has been prepared in accordance with IFRS.

(euro in thousands)		Three Months Ended		Six Months Ended
	June 30,	June 30,
		(unaudited)		(unaudited)
	2006	2007	2006	2007
Cash flows from operating
activities:
Net income (loss)	4,764	(4,743)	6,047	(3,153)
Depreciation, amortization and impairment
	2,385	3,532	4,515	5,837
Other non-cash items	(2,763)	615	(2,576)	(455)
Changes in working capital	(6,150)	(1,862)	(10,973)	(8,165)
Net cash used in operating activities	(1,764)	(2,458)	(2,987)	(5,936)
Cash flows from investing activities:
Capital expenditures	(1,072)	(1,302)	(2,088)	(2,186)
Proceeds from sale of assets and
liabilities	1,000	-	1,000	-
Proceeds from sale of equipment	101	214	340	209
Net cash provided by (used in) investing
activities	29	(1,088)	(748)	(1,977)
Cash flows from financing activities:
Proceeds from (payments of) bank lines of
credit	(8,521)	9,202	(4,888)	12,597
Proceeds from (payments of) debt and
capital leases	(1,015)	2,218	4,379	(891)
Dividend paid to minority shareholder	-	(44)	-	(44)
Proceeds from exercised stock options	-	19	-	46
Net cash provided by (used in) financing
activities	(9,536)	11,395	(509)	11,708
Net change in cash and cash equivalents Effect of changes in exchange rates	(11,271)	7,849	(4,244)	3,795
on cash and cash equivalents	(334)		(454)
Cash and cash equivalents at		(82)		(140)
beginning of the period	88,672		81,765
		93,900		98,012
Cash and cash equivalents at end of
the period	77,067	101,667	77,067	101,667

Consolidated Cash Flow Statements

The financial information has been prepared in accordance with IFRS.

Supplemental Information (unaudited)

(euro in million, unless stated otherwise)

REVENUE		Q1-2006 Q2-2006		Q3-2006		Q4-2006		Q1-2007		Q2-2007
Per product:
Array connect Leadframe	29.1 15.4	65% 35%	32.1 17.7	64% 36%	32.1 15.2	68% 32%	35.2 14.3	71% 29%	33.8 11.7	74% 26%	29.6 11.6	72% 28%
Total	44.5	100%	49.8	100%	47.3	100%	49.5	100%	45.5	100%	41.2	100%
Per geography:
Asia Pacific	28.5	64%	32.0	64%	26.6	56%	30.5	61%	26.7	59%	27.5	67%
Europe and ROW	11.4	26%	12.8	26%	14.9	32%	15.7	32%	12.5	27%	10.1	24%
USA	4.6	10%	5.0	10%	5.8	12%	3.3	7%	6.3	14%	3.6	9%
Total	44.5	100%	49.8	100%	47.3	100%	49.5	100%	45.5	100%	41.2	100%
ORDERS	Q1-2006		Q2-2006		Q3-2006		Q4-2006		Q1-2007		Q2-2007
Per product:
Array connect	36.0	60%	33.0	71%	29.2	66%	26.3	70%	29.5	71%	27.3	65%
Leadframe	23.7	40%	13.5	29%	15.3	34%	11.4	30%	12.3	29%	14.8	35%
Total	59.7	100%	46.5	100%	44.5	100%	37.7	100%	41.8	100%	42.1	100%
Per geography:
Asia Pacific	38.7	65%	26.0	56%	25.6	58%	22.4	60%	26.3	63%	28.2	67%
Europe and ROW	13.6	23%	13.4	29%	16.6	37%	10.3	27%	10.3	25%	10.9	26%
USA	7.4	12%	7.1	15%	2.3	5%	5.0	13%	5.2	12%	3.0	7%
Total	59.7	100%	46.5	100%	44.5	100%	37.7	100%	41.8	100%	42.1	100%
Per customer type:
IDM	33.9	57%	29.3	63%	25.5	57%	22.2	59%	24.1	58%	24.8	59%
Subcontractors	25.8	43%	17.2	37%	19.0	43%	15.5	41%	17.7	42%	17.3	41%
Total	59.7	100%	46.5	100%	44.5	100%	37.7	100%	41.8	100%	42.1	100%
BACKLOG	Mar 31, 2006		Jun 30, 2006		Sep 30, 2006		Dec 31, 2006		Mar 31, 2007		Jun 30, 2007
Per product:
Array connect	50.2	70%	50.8	74%	47.9	73%	38.9	72%	34.6	69%	32.3	63%
Leadframe	21.8	30%	17.9	26%	18.0	27%	15.1	28%	15.7	31%	18.9	37%
Total	72.0	100%	68.7	100%	65.9	100%	54.0	100%	50.3	100%	51.2	100%
HEADCOUNT 1)	Mar 31, 2006		Jun 30, 2006		Sep 30, 2006		Dec 31, 2006		Mar 31, 2007		Jun 30, 2007
Europe	776	64%	775	62%	773	61%	748	59%	746	58%	732	57%
Asia Pacific	349	29%	388	31%	414	33%	433	34%	471	36%	471	37%
USA	81	7%	81	7%	82	6%	85	7%	76	6%	76	6%
Total	1,206	100%	1,244	100%	1,269	100%	1,266	100%	1,293	100%	1,279	100%

1) Including temporary staff

Supplemental Information (unaudited)

(euro in million, unless stated otherwise)

OTHER FINANCIAL DATA	Q1-2006			Q2-2006	Q3-2006		Q4-2006		Q1-2007		Q2-2007
Gross profit:
Array connect	11.4	39.5% 34.9%	13.7	42.9% 39.9%	13.4	41.8% 37.5%	14.6	41.7% 36.2%	12.7	37.6%	10.2	34.5%
Leadframe	5.4		7.1		5.7		5.2		4.4	37.6%	4.3	37.1%
Subtotal	16.8	37.9%	20.8	41.8%	19.1	40.4%	19.8	40.1%	17.1	37.6%	14.5	35.2%
Amortization of intangibles	(0.5)	-1.2%	(0.5)	-1.0%	(0.5)	-1.1%	(0.5)	-1.1%	(0.5)	-1.0%	(0.5)	-1.1%
Restructuring charges	0.2	0.4%	-		-		-		-		(2.0)	-4.9%
Total	16.5	37.1%	20.3	40.8%	18.6	39.3%	19.3	39.0%	16.6	36.6%	12.0	29.2%
Selling, general and administrative expenses:
SG&A expenses	9.7	21.8%	11.0	22.1%	10.5	22.3%	11.8	23.7%	9.7	21.3%	10.0	24.3%
Amortization of intangibles	0.1	0.2%	0.1	0.2%	0.1	0.2%	0.1	0.2%	0.1	0.2%	0.1	0.2%
Restructuring charges	-		-		-		-		-		1.2	2.9%
Total	9.8	22.0%	11.1	22.3%	10.6	22.5%	11.9	23.9%	9.8	21.6%	11.3	27.4%
Research and development expenses:
R&D expenses	4.4	9.9%	4.5	9.0%	3.9	8.2%	4.5	9.1%	5.4	11.9%	5.0	12.1%
Capitalization of R&D charges	(0.5)	-1.1%	(0.3)	-0.6%	-		-		-		-	-
Amortization of intangibles	0.3	0.7%	0.4	0.8%	0.5	1.1%	0.5	1.0%	0.5	1.1%	0.5	1.2%
Restructuring charges	-		-		-		-		-		0.1	0.2%
Total	4.2	9.4%	4.6	9.2%	4.4	9.3%	5.0	10.1%	5.9	13.0%	5.6	13.6%
Financial expenses, net:
Interest expense, net	0.6		0.7		0.8		0.7		0.5		0.5
Foreign exchange (gains) / losses	0.3		0.3		(0.1)		(0.2)		(0.1)		0.1
Non recurring charge related to statutory tax review	-		-		-		-		0.5		-
Total	0.9		1.0		0.7		0.5		0.9		0.6
Operating income / loss
as % of net sales	2.5	5.7%	4.6	9.2%	3.5	7.4%	2.5	4.9%	0.9	2.0%	(4.9)	-11.9%
EBITDA /
as % of net sales	4.7	10.5%	6.8	13.6%	5.8	12.3%	5.0	10.2%	3.2	7.0%	(1.3)	-3.3%
Net income / loss
as % of net sales	1.3	2.9%	4.8	9.6%	2.1	4.4%	2.6	5.4%	1.6	3.5%	(4.7)	-11.4%
Income / loss per share
Basic	0.04		0.15		0.06		0.08		0.05		(0.14)
Diluted	0.04		0.13		0.06		0.08		0.05		(0.14)