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BE Semiconductor Industries N.V. Transaction in Own Shares 2007

Feb 27, 2007

3819_iss_2007-02-27_a6d0b110-cae9-4751-9ae2-00255233b3ca.pdf

Transaction in Own Shares

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Besi

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

PRESS RELEASE

BE Semiconductor Industries Announces Share Repurchase Program

Duiven, the Netherlands, February 27, 2007, BE Semiconductor Industries N.V. ("the Company" or "Besi") (Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, today announced that its Supervisory Board has authorized the repurchase of up to a maximum of 1.0 million of the Company's Ordinary Shares from time to time on the open market or in privately negotiated transactions pursuant to a resolution approved by shareholders at Besi's Annual General Meeting in March 2006. Such authorization expires September 2007 unless extended by affirmative resolution of shareholders at Besi's Annual General Meeting on March 22, 2007. The maximum number of shares subject to this share repurchase authorization represents approximately 3% of Besi's 32.8 million shares outstanding at December 31, 2006 (net of treasury shares previously repurchased) or approximately € 5 million in market value at current prices.

Based on current market prices, Besi believes that it is in the best interest of its shareholders for the Company to acquire shares in the open market both to help reduce the difference between its stock price (€ 5.04 closing price as of February 26, 2007) and its book value per share (€ 5.93 at December 31, 2006) and partially to offset dilution associated with employee stock plans and the issue of shares as part of the consideration for the Datacon acquisition.

The timing and amount of any shares repurchased under its current share repurchase authorization will be determined by the Company's management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at anytime. Any repurchased shares will be available in the future for use in connection with its stock plans and for other general corporate purposes, including acquisitions.

The repurchase program will be funded using the company's available cash resources. As of December 31, 2006, Besi had cash and cash equivalents of approximately € 98 million, total debt outstanding of € 80 million and net cash of € 18 million.

Richard Blickman, Chief Executive Officer of Besi commented: "We have spent over the past five years approximately € 72.6 million of our cash resources to acquire Datacon and Laurier, approximately € 20.2 million to fund a capital expenditure program designed to greatly enhance and expand our Malaysian and Chinese production capacity, and approximately € 8.4 million to restructure our business. Given the successful restructuring and turnaround of Besi's operations in 2006, the successful integration of our Datacon acquisition and more limited projected capital spending requirements in the near term, we believe it is appropriate now to consider utilizing cash resources to help improve shareholder value through additional non-operational measures. After due consideration, we believe that the proposed repurchase of shares is the most effective method at present of enhancing shareholder value by helping to reduce the discrepancy between our current market price and our book value per share, and by partially offsetting dilution associated with employee stock plans and the Datacon acquisition.


Besi

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

Statements in this press release regarding Besi's intention to repurchase Ordinary Shares from time to time under the stock repurchase program, the intended use of any repurchased shares and the source of funding are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the market price of Besi's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors identified in the Company's Annual Report to be filed with the AFM.

Contacts:

Richard W. Blickman President & CEO Tel. (31) 26 319 4500 [email protected]

Cor te Hennepe Director of Finance Tel. (31) 26 319 4500 [email protected]