BE Semiconductor Industries N.V.

Earnings Release • Apr 25, 2012

PRESS RELEASE

Besi Reports Q1-12 Revenue and Profit That Meet or Exceed Expectations. 50% Revenue Increase and Substantial Profit Increase Forecast for Q2-12

Duiven, the Netherlands, April 25, 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 first quarter ended March 31, 2012.

Key Highlights

• Revenue of € 55.8 million down 20.7% vs. Q4-11 and in line with prior guidance
• Improved business outlook as orders rose to € 84.2 million (+52.5% vs. Q4-11). Increase across all product groups, but primarily focused on flip chip and multi module die attach systems for smart phone/tablet applications
• Gross margins increased to 39.4% from 38.5% in Q4-11 due to improved packaging gross margins and reduced production overhead
• Operating income of € 2.4 million in Q1-12 roughly equal to Q4-11 despite sequential revenue decrease demonstrates improved scalability of business model
• Net income declines to € 0.2 million in Q1-12 vs. € 3.4 million in Q4-11 due to adverse impact on hedging contracts from increase of Swiss franc vs. US dollar and higher effective tax rate due to subsidiary profit composition
• Liquidity position continues to strengthen with net cash up by € 7.7 million to € 70.4 million

Outlook

Q1-12 ending backlog indicates approximately 50% revenue growth and substantial profit increase in Q2-12

	Q1-	Q4-		Q1-
(€ millions, except EPS)	2012	2011	Δ	2011	Δ
Revenue	55.8	70.4	-20.7%	91.1	-38.7%
Operating income	2.4	2.5	-4.0%	13.5	-82.2%
EBITDA	5.2	5.3	-1.9%	16.3	-68.1%
Net income	0.2	3.4	-94.1%	9.6	-97.9%
EPS (diluted)	0.01	0.09	-88.9%	0.26	-96.2%
Orders	84.2	55.2	52.5%	88.3	-4.6%
Backlog	79.1	50.6	56.3%	73.7	7.3%
Cash flow from operations	12.0	18.6	-35.5%	1.5	700.0%
Cash	93.5	87.5	6.9%	65.5	42.7%
Total Debt	23.1	24.8	-6.9%	45.9	-49.7%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "Our Q1-12 results provide further evidence of our corporate transformation and the improved scalability of our business model. First, revenue and profit once again met or exceeded expectations. In addition, we were able to maintain our operating profit in Q1-12 at Q4-11 levels despite a 20.7% sequential revenue decline given headcount and overhead reductions undertaken in the second half of 2011 to lower our break even costs. Further, we were able to maintain profitability throughout the most recent industry down cycle due to the shift in our product mix to advanced packaging applications and cost benefits realized from our Asian production transfer, overhead reduction and product line restructuring. In addition, our liquidity continued to improve in Q1-12 as our net cash position increased by € 7.7 million to € 70.4 million (€ 1.92 per share) vs. Q4-11 as a result of tight inventory management in the face of a large order ramp.

Besi's business outlook has improved significantly this year as evidenced by a 52.5% order increase in Q1-12. Bookings increased across the product portfolio due to our strategic positioning in advanced packaging applications, primarily focused this quarter on increased demand for our flip chip and multi module die attach systems used for smart phone and tablet applications. Based on our order backlog and customer feedback, we expect that our revenue will increase by approximately 50% in Q2-12 vs. Q1-12 along with a substantial increase in profits."

First Quarter Results of Operations

Besi's € 14.6 million (20.7%) sequential revenue decrease in Q1-12 was broad based across all product groups and reflected customer caution in adding new capacity in the second half of 2011 due to global economic concerns. The decrease was in line with prior guidance (decrease of 20.0%). Revenue in Q1-12 decreased by € 35.3 million (38.7%) vs. Q1-11 reflecting the negative influence of the industry downturn on Besi's business in the second half of 2011.

Orders for Q1-12 were € 84.2 million, an increase of € 29.0 million (52.5%), as compared to Q4-11 and a decrease of € 4.1 million (4.6%) as compared to Q1-11. The quarterly sequential order increase was across the product portfolio, but primarily focused on flip chip and multi module die attach systems supporting smart phone and tablet supply chains. On a customer basis, the sequential order increase in Q1-12 reflected a € 17.4 million (51.6%) increase by subcontractors and a € 11.6 million (53.9%) increase by IDMs. Backlog at March 31, 2012, was € 79.1 million, an increase of € 28.5 million, or 56.3%, as compared to December 31, 2011 and € 5.4 million, or 7.3% as compared to Q1-11.

Besi's gross margin for Q1-12 was 39.4% as compared to 38.5% in Q4-11 and 40.0% in Q1-11 and exceeded guidance (37%-39%). As compared to Q4-11, the gross margin increase was primarily due to improved packaging system margins and lower production overhead partially offset by lower margins realized from sales of wire bonding and plating systems. As compared to Q1-11, the gross margin reduction was due primarily to significantly lower revenue relative to overhead levels.

Besi's operating expenses were € 19.6 million in Q1-12 as compared to € 24.6 million in Q4-11 and € 22.9 million in Q1-11 and were better than prior guidance of € 22.1 million. As compared to Q4-11, the decline was primarily related to (i) € 1.7 million of lower personnel expenses including severance, bonus accruals and stock based compensation, (ii) € 1.0 million from the reversal of a provision for the rental of a portion of Besi's facilities, (iii) € 0.9 million of lower selling and service expenses due to reduced sales and travel activity and (iv) € 0.8 million of lower consulting and advisory costs. In Q1-12, Besi capitalized € 3.3 million of development expenses as compared to € 2.7 million in Q4-11 and € 1.5 million in Q1-11. As a percentage of revenue, total operating expenses were 35.1% in Q1-12 as compared to 34.9% in Q4-11 and 25.1% in Q1-11.

Financial income, net decreased from income of € 1.2 million in Q4-11 to expense of € 0.9 million in Q1-12. The decrease as compared to Q4-11 was due primarily to the appreciation of the Swiss franc vs. the US dollar which caused losses on hedging transactions vs. gains realized in the prior quarter. As compared to Q1-11, financial income, net decreased from an expense of € 1.3 million due primarily to lower interest expense related to the redemption of Besi's 5.5% Convertible Notes in Q2-11.

Besi's net income in Q1-12 was € 0.2 million as compared to € 3.4 million in Q4-11 and € 9.6 million in Q1-11. The profit decrease vs. Q4-11 was due to a € 2.1 million quarterly sequential decline in financial income, net and a higher effective tax rate during Q1-12 as a result of a change in the mix of profits contributed by its European subsidiaries. Such negative profit influences were partially offset by higher sequential gross margins and reduced operating expenses. As compared to Q1-11, the profit reduction was primarily due to the impact of substantially lower revenue on Besi's gross and operating margins and a higher effective tax rate.

Financial Condition

At the end of Q1-12, Besi's cash and cash equivalents increased by € 6.0 million vs. Q4-11 to reach € 93.5 million while total debt and capital leases declined sequentially by € 1.7 million to € 23.1 million. As a result, net cash increased by € 7.7 million sequentially to € 70.4 million. Besi generated cash flow from operations of € 12.0 million in Q1-12 primarily as a result of operating and other related cash flow of € 4.7 million and a € 7.2 million reduction of working capital related to its quarterly sequential revenue decrease. Cash flow from operations was utilized primarily to fund (i) € 3.3 million of capitalized development spending, (ii) € 1.8 million of debt reduction and (iii) € 0.6 million of capital expenditures.

Outlook

According to leading industry analysts such as VLSI and Gartner Associates, the outlook for the semiconductor assembly market in 2012 has improved significantly in recent months as compared to the start of the year. Similarly, Besi's business outlook has also improved given current order trends. Based on its March 31, 2012 backlog and feedback from customers, Besi forecasts for Q2-12 that:

• Revenue will increase by approximately 50% as compared to the € 55.8 million reported in Q1-12.

• Gross margins will range between 39% and 41% as compared to 39.4% realized in Q1-12.

• Operating expenses will increase by 10%-15% as compared to the € 20.6 million (ex one-time € 1.0 million rental provision) reported in Q1-12.

• Capital expenditures will be approximately € 2.0 million as compared to € 0.6 million in Q1-12.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 11:30 a.m. CET (5:30 a.m. New York time). The dial-in for the conference call is (31) 10 29 44 215. 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" constitute 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 March 31, (unaudited)
	2012	2011
Revenue Cost of sales	55,797 33,803	91,079 54,685
Gross profit	21,994	36,394
Selling, general and administrative expenses Research and development expenses	13,236 6,375	16,499 6,387
Total operating expenses	19,611	22,886
Operating income	2,383	13,508
Financial income (expense), net	(871)	(1,348)
Income before taxes	1,512	12,160
Income tax expense (benefit)	1,304	2,610
Net income	208	9,550
Net income per share – basic Net income per share – diluted	0.01 0.01	0.28 0.26
Number of shares used in computing per share amounts: - basic - diluted	36,687,068 37,369,568a	33,943,901 39,378,047b

a The calculation of the diluted income per share assumes the exercise of the equity settled share based payments ("PSA shares").

b The calculation of the diluted income per share assumes conversion of the Company's 5.5% convertible notes due 2012 as such conversion would have a dilutive effect (5,434,146 ordinary shares).

(euro in thousands)	March 31,	December 31,
	2012	2011
	(unaudited)	(unaudited)
ASSETS
Cash and cash equivalents	93,539	87,484
Accounts receivable	59,909	66,728
Inventories	74,445	73,348
Income tax receivable	997	989
Other current assets	9,474	8,102
Total current assets	238,364	236,651
Property, plant and equipment	25,755	26,506
Goodwill	43,770	44,062
Other intangible assets	29,634	27,818
Deferred tax assets	12,771	12,506
Other non-current assets	1,438	1,372
Total non-current assets	113,368	112,264
Total assets	351,732	348,915

Consolidated Balance Sheets

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks Current portion of long-term debt	22,080	23,749
and financial leases	184	336
Accounts payable	22,605	21,377
Accrued liabilities	34,793	32,222
Total current liabilities	79,662	77,684
Other long-term debt and
financial leases	807	695
Deferred tax liabilities	7,043	7,046
Other non-current liabilities	8,190	7,427
Total non-current liabilities	16,040	15,168
Total equity	256,030	256,063
Total liabilities and equity	351,732	348,915

(euro in thousands)		Three Months Ended
		March 31,
		(unaudited)
	2012	2011
Cash flows from operating activities:
Operating income	2,383	13,508
Depreciation and amortization Share-based compensation expense Loss (gain) on disposal of assets	2,814 (309) 1	2,772 717 (37)
Changes in working capital Income taxes paid Interest received (paid)	7,227 (172) 12	(14,509) (91) (873)
Net cash provided by operating activities	11,956	1,487
Cash flows from investing activities:
Capital expenditures Capitalized development expenses Proceeds from sale of equipment	(606) (3,263) -	(1,520) (1,542) 40
Net cash used in investing activities	(3,869)	(3,022)
Cash flows from financing activities:
Proceeds (payments) on bank lines of credit Proceeds (payments) on debt and financial leases	(1,868) 113	(54) (347)
Purchase of treasury shares	(109)	-
Net cash provided by (used in) financing activities	(1,864)	(401)
Net increase/(decrease) in cash and cash equivalents	6,223	(1,936)
Effect of changes in exchange rates on cash and cash equivalents	(168)	(1,826)
Cash and cash equivalents at beginning of the period	87,484	69,305
Cash and cash equivalents at end of the period	93,539	65,543

Consolidated Cash Flow Statements

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE	Q1-2011		Q2-2011		Q3-2011		Q4-2011		Q1-2012
Per geography:
Asia Pacific	66.8	73%	64.5	72%	57.4	76%	54.7	78%	41.3	74%
Europe and ROW	18.0	20%	18.3	20%	11.4	15%	11.8	17%	8.4	15%
USA	6.3	7%	7.1	8%	6.8	9%	3.8	5%	6.1	11%
Total	91.1	100%	89.9	100%	75.6	100%	70.4	100%	55.8	100%
ORDERS	Q1-2011		Q2-2011		Q3-2011		Q4-2011		Q1-2012
Per geography:
Asia Pacific	64.2	73%	60.5	73%	58.5	78%	37.5	68%	66.4	79%
Europe and ROW	17.4	20%	13.9	17%	12.1	16%	9.5	17%	11.2	13%
USA	6.7	7%	8.1	10%	4.5	6%	8.2	15%	6.6	8%
Total	88.3	100%	82.5	100%	75.1	100%	55.2	100%	84.2	100%
Per customer type:
IDM Subcontractors	41.5 46.8	47% 53%	36.3 46.2	44% 56%	24.3 50.8	32% 68%	21.5 33.7	39% 61%	33.1 51.1	39% 61%
	88.3		82.5		75.1		55.2		84.2
Total		100%		100%		100%		100%		100%
BACKLOG	Mar 31, 2011		Jun 30, 2011		Sep 30, 2011		Dec 31, 2011		Mar 31, 2012
Backlog	73.7		66.3		65.8		50.6		79.1
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%
Asia Pacific USA	774 45	51% 3%	815 45	52% 3%	814 46	52% 3%	802 46	52% 3%	799 46	53% 3%
Total	1,516	100%	1,563	100%	1,570	100%	1,543	100%	1,515	100%
Temporary staff
Europe	58	28%	72	35%	79	38%	46	72%	44	42%
Asia Pacific	150	71%	129	64%	122	60%	16	25%	56	55%
USA	2	1%	2	1%	4	2%	2	3%	3	3%
Total	210		203		205		64		103
Total fixed and temporary staff	1,726		1,766		1,775		1,607		1,618
OTHER FINANCIAL DATA	Q1-2011		Q2-2011
					Q3-2011		Q4-2011		Q1-2012
Gross profit:	36.4	40.0%	37.0	41.2%	30.3	40.0%	27.1	38.5%	22.0	39.4%
Amortization of intangibles
Restructuring charges	i.		ä,		ä,		ä,		i.
Total	36.4	40.0%	37.0	41.2%	30.3	40.0%	27.1	38.5%	22.0	39.4%
Selling, general and admin expenses:
SG&A expenses	16.0	17.6%	17.2	19.1%	16.0	21.2%	16.8	23.9%	19.0	34.1%
Amortization of intangibles	0.5	0.5%	0.5	0.6%	0.5	0.7%	0.5	0.7%	0.6	1.0%
Restructuring charges							0.7	1.1%	0.0
Total	16.5	18.1%	17.7	19.7%	16.5	21.8%	18.0	25.6%	19.6	35.1%
Research and development expenses:
R&D expenses	6.8	7.5%	8.6	9.6%	8.0	10.6%	8.2	11.7%	8.5	15.2%
Capitalization of R&D charges	(1.5)	$-1.6%$	(2.3)	$-2.6%$	(2.1)	$-2.8%$	(2.7)	$-3.8%$	(3.3)	$-5.8%$
Amortization of intangibles	1.1	1.2%	1.1	1.2%	1.1	1.4%	1.1	1.5%	1.2	2.1%
Restructuring charges	$\overline{\phantom{a}}$		$\overline{\phantom{a}}$		$\blacksquare$		$\overline{\phantom{a}}$		$\overline{\phantom{a}}$
		7.0%		8.2%		9.2%		9.3%		11.4%
Total	6.4		7.4		7.0		6.6		6.4
Financial expense (income), net:
Interest expense (income), net	0.6		(0.1)		0.1		0.1		0.0
Foreign exchange (gains) \losses	0.7		(0.1)		0.1		(1.3)		0.9
Gain on extinguishment of debt	÷		$\overline{\phantom{a}}$		$\overline{\phantom{a}}$
Total	1.3		(0.2)		0.2		(1.2)		0.9
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%
EBITDA						12.6%				9.3%
as% of net sales	16.3	17.9%	14.8	16.5%	9.5		5.3	7.5%	5.2
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%
Income per share Basic	0.28		0.25		0.13		0.09		0.01