Nova Ltd. — Interim / Quarterly Report 2007

Aug 1, 2007

Company Contact: Dror David, Chief Financial Officer Nova Measuring Instruments Ltd. Tel: 972-8-938-7505 E-mail: info@nova.co.il http://www.nova.co.il

Investor relations Contacts: Ehud Helft / Kenny Green GK Investor Relations Tel: +1-646-201-9246 E-mail: info@gkir.com

Company Press Release

NOVA ANNOUNCES 29% REVENUE INCREASE AND $1.1M NET PROFIT IN Q2-2007

Rehovot, Israel, - August 1, 2007 - Nova Measuring Instruments Ltd. (Nasdaq: NVMI) , provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its results for the second quarter of 2007.

Total revenues increased 29% to $14.8 million, compared to $11.4 million reported for the second quarter of 2006. Revenues increased 11% sequentially compared to $13.4 million reported for the first quarter of 2007.

Gross margin for the second quarter of 2007 was 46% compared with 43% for the second quarter of 2006 and 44% for the first quarter of 2007.

Total operating expenses were $5.9 million for the second quarter of 2007, compared with $5.4 million in the second quarter of 2006, and $6.6 million in the first quarter of 2007.

Net profit for the second quarter of 2007 was $1.1 million, $0.06 basic profit per share and $0.05 diluted profit per share, compared with a net loss of $0.4 million, or $0.02 per share, for the second quarter of 2006, and compared with a net loss of $0.6 million, or $0.04 per share, for the first quarter of 2007. The second quarter net results included $0.4 million of share based compensation expenses and amortization of intangible assets.

Cash reserves at the end of the second quarter of 2007 were $20.4 million, a decrease of $0.7 million compared to the end of first quarter of 2007. This decrease is related to final payments of intelectual property litigation costs which were settled back in April this year.

“We are pleased to report that, within 12 months of the management reorganization, our initiatives have resulted in significant revenue growth and a long-awaited return to profitability,” said Gabi Seligsohn, President and CEO. “In addition to continued market share gains and penetration of new market segments, the impact of our cost reduction programs, and the contribution of high-margin software sales have also helped us achieve this goal. We have succeeded in significantly lowering our breakeven point, and will contiune to focus on profitability going forward.”

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The Company will host a conference call today, August 1, 2007, at 10:00am EST. To participate please dial in the U.S: 1-866-860-9642; UK: 0-800-032-3367; or internationally: +972-3-918-0687 at least 5 minutes before the start of the call. A recording of the call will be avialble on Nova’s website, within 24 hours following the end of the call.

About Nova

Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is www.nova.co.il.

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. These risks and other factors include but are not limited to: our dependency on a single integrated process control product line; the highly cyclical nature of the markets we target; our inability to reduce spending during a slowdown in the semiconductor industry; our ability to respond effectively on a timely basis to rapid technological changes; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products and risks related to our operations in Israel. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading ``Risk Factors’’ in Nova’s Annual Report on Form 20-F for the year ended December 31, 2006 filed with the Securities and Exchange Commission on May 11, 2007. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Measuring Instruments Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

(Tables to Follow)

NOVA MEASURING INSTRUMENTS LTD. QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

REVENUESProduct salesServicesCOST OF REVENUESProduct salesServicesGROSS PROFITOPERATING EXPENSESResearch & Development expenses, netSales & Marketing expensesGeneral & Administration expensesOPERATING PROFIT (LOSS)INTEREST INCOME, NETNET PROFIT (LOSS)Basic profit (loss) per shareDiluted profit (loss) per shareShares used for calculation of basic profit (loss)per shareShares used for calculation of diluted profit(loss) per share	Q2-200712,1282,68214,8105,5222,5478,0696,7412,2032,5281,1595,8908512201,0710.060.0518,90419,652	Q1-200710,4432,92413,3674,8682,6667,5345,8332,3332,1982,1126,643(810)169(641)(0.04)(0.04)17,23917,239	Q2-20069,1412,30211,4434,3352,1606,4954,9482,0102,0431,3825,435(487)128(359)(0.02)(0.02)15,48115,481

NOVA MEASURING INSTRUMENTS LTD. YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

REVENUESProduct salesServicesCOST OF REVENUESProduct salesServicesGROSS PROFITOPERATING EXPENSESResearch & Development expenses, netSales & Marketing expensesGeneral & Administrative expensesOPERATING PROFIT (LOSS)INTEREST INCOME, NETNET PROFIT (LOSS)Basic profit (loss) per shareDiluted profit (loss) per shareShares used for calculation of basic profit (loss) per shareShares used for calculation of diluted profit (loss) pershare	Six-months endedJune 30, 2007June 30, 200622,57116,9385,6064,78728,17721,72510,3907,9915,2134,01715,60312,00812,5749,7174,5364,3074,7263,7153,2712,43012,53310,45241(735)389335430(400)0.02(0.03)0.02(0.03)18,07215,47518,78415,475	Six-months endedJune 30, 2007June 30, 200622,57116,9385,6064,78728,17721,72510,3907,9915,2134,01715,60312,00812,5749,7174,5364,3074,7263,7153,2712,43012,53310,45241(735)389335430(400)0.02(0.03)0.02(0.03)18,07215,47518,78415,475	Six-months endedJune 30, 2007June 30, 200622,57116,9385,6064,78728,17721,72510,3907,9915,2134,01715,60312,00812,5749,7174,5364,3074,7263,7153,2712,43012,53310,45241(735)389335430(400)0.02(0.03)0.02(0.03)18,07215,47518,78415,475
			16,9384,78721,7257,9914,01712,0089,7174,3073,7152,43010,452(735)335(400)(0.03)(0.03)15,47515,475

NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET

(U.S. dollars in thousands)

CURRENT ASSETSCash and cash equivalentsShort-term interest-bearing bank depositsShort-term investmentsHeld to maturity securitiesTrade accounts receivableInventoriesOther current assetsLONG-TERM ASSETSLong-term interest-bearing bank depositsHeld to maturity securitiesOther Long-term assetsSeverance pay fundsFIXED ASSETS, NETINTANGIBLE ASSETS, NETTotal assetsCURRENT LIABILITIESTrade accounts payableDeferred incomeOther current liabilitiesLONG-TERM LIABILITIESLiability for employee severance payDeferred incomeOther long-term liabilitySHAREHOLDERS' EQUITYTotal liabilities and shareholders' equity		As ofJune 30,As ofDecember 31,200720066,2544,1761174667,1772,4002,6623,2658,72910,2529,0558,9682,0701,91736,06431,4442,1673,1721,9791,7041642222,1562,2496,4667,3472,8862,6012,8113,02748,22744,4195,0946,4241,7523,0486,3586,09913,20415,5713,0813,22499097970704,1414,27330,88224,57548,22744,419	As ofJune 30,As ofDecember 31,200720066,2544,1761174667,1772,4002,6623,2658,72910,2529,0558,9682,0701,91736,06431,4442,1673,1721,9791,7041642222,1562,2496,4667,3472,8862,6012,8113,02748,22744,4195,0946,4241,7523,0486,3586,09913,20415,5713,0813,22499097970704,1414,27330,88224,57548,22744,419
			20064,1764662,4003,26510,2528,9681,91731,4443,1721,7042222,2497,3472,6013,02744,4196,4243,0486,09915,5713,224979704,27324,57544,419