ORBK Orbotech Ltd. - Ordinary Shares

ORBOTECH LTD. (NASDAQ/NM SYMBOL: ORBK) today announced that it has signed a definitive agreement to purchase New System Srl, a privately held company that develops and markets inkjet printing solutions for the bare printed circuit board (�PCB�) industry. Orbotech will pay 5.75 M� to the stockholders of New System for the acquisition of all of the outstanding shares of New System. In addition, New System will have approximately 4 M� in net liabilities immediately following the acquisition, including approximately 1 M� in stockholder loans which will be repaid following the closing. For Orbotech, this acquisition is another step in the implementation of its ongoing strategy of growth and diversification by investing in synergistic areas that leverage its core technologies and expertise. By entering into the growing area of inkjet imaging, Orbotech will be able to take advantage of the increasing opportunities that this technology presents. The Company believes that this transaction has the potential to generate approximately $20 million in annual revenues in the mid-term, based on New System's current product offering and its short term research and development plan. �New System is a leading company in the inkjet field, with unique products and technologies and a strong customer base. The acquisition of New System is in line with Orbotech�s strategy to expand from yield management to production solutions. It will provide a strong basis for further expansion in the PCB industry by broadening our product offering as the industry moves from analog to digital production processes. Over the long term, this technology also has potential to be utilized in other electronics industry applications,� said Mr. Rani Cohen, CEO of Orbotech Ltd. Mr. Cohen added: �The integration of New System into Orbotech will capitalize on the best of both companies� competencies. Our complementary technologies, products and operations will provide a comprehensive imaging offering enabling customers to achieve higher yields, better production efficiencies and a greater return on investment.� The transaction is expected to close today. Following completion, New System will be fully integrated into Orbotech�s PCB Division. About New System Established in 1993, New System Srl is a privately owned company that develops and markets complete inkjet imaging solutions designed to substitute for traditional processes used in the PCB industry. New System�s customers are mainly located in Europe and the United States. Operating from Gorizia, Italy, the company has approximately 30 employees including a strong R&D team specializing in high speed, high accuracy, single-step UV curable inkjet technologies. With some 13 years of expertise in inkjet for PCB applications, New System has world class know-how in multiple aspects of inkjet system design and manufacturing for electronic industry applications. About Orbotech Ltd. Orbotech is a world leader in providing yield-enhancing, production support solutions for specialized applications in the supply chain of the electronics industry, principally for printed circuit boards (PCBs) and flat panel displays (FPDs). The Company designs, develops, manufactures, markets and services automated optical inspection (AOI) systems for bare and assembled PCBs and for FPDs, and imaging solutions for PCB production. The Company�s innovative AOI, imaging and computer-aided manufacturing (CAM) technologies enable customers to achieve the increased yields and throughput essential to remaining at the forefront of electronics production. Through its subsidiary, Orbograph Ltd., the Company also develops and markets automatic check reading software to banks and other financial institutions. Of Orbotech�s employees, more than one quarter are scientists and engineers, who integrate their multi-disciplinary knowledge, talents and skills to develop and provide sophisticated solutions and technologies designed to meet customers� long-term needs. Orbotech maintains its headquarters and its primary research, development and manufacturing facilities in Israel, and more than 35 offices worldwide. The Company�s extensive network of marketing, sales and customer support teams throughout North America, Europe, the Pacific Rim, China and Japan deliver its knowledge and expertise directly to customers the world over. For more information visit www.orbotech.com. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including industry trends, the timing and strength of product and service offerings, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis and other risks detailed from time to time in the Company�s SEC reports. The Company assumes no obligation to update the information in this press release.