February 2, 2006—Kulicke & Soffa Industries, Inc. (K&S) announced a plan to tighten its focus on semiconductor assembly equipment and materials and create value for its shareholders.

·K&S has signed a definitive agreement to sell its wafer test assets to SV Probe, PTE, Ltd.

·K&S has also signed a definitive agreement to sell its package test assets to Investcorp Technology Ventures II, L.P

·In both cases, the transactions are subject to closing conditions. 

Scott Kulicke, chairman and CEO of K&S, discussed the decision to divest these businesses: “We’ve made significant progress with these businesses over the last few months, including: introducing new products; completing our planned product moves into China; and gaining market share.  However, this progress has come at the expense of diverting focus away from our goal of being both the technology leader and the low cost supplier in our core assembly markets, and that’s unacceptable.” He added, “We came to the conclusion that our test customers would be better served by suppliers focused solely on test.  In selecting both SV Probe and Investcorp, we’ve found buyers committed to continuing to meet the high standard of customer service that has characterized K&S’s ownership of these businesses, and we’ve structured the sales agreements to insure customers a seamless transition.”

Kevin Kurtz, president and CEO of SV Probe PTE Ltd, said, “The combination of SV Probe and K&S Wafer Test Products creates a premier one-stop provider for all wafer testing requirements.  This unification clearly establishes SV Probe as the leading provider of a comprehensive set of innovative, cost effective test solutions. There is tremendous synergy between SV Probe and the K&S Wafer Test business, which will translate into a smooth integration for our customers.”

Alex Guira, a managing director in Investcorp’s Technology Investment Group, said, ”In what represents Investcorp’s seventh technology venture buyout over the past  three years, we are very pleased to partner with the management team and employees of the K&S package test group in the acquisition of the business. We look forward to supporting the newly independent company as it executes a growth plan centered around its leading market share and strong base of customers.”

Mr. Kulicke concluded, "K&S’s core strengths lie in the semiconductor assembly arena. We expect that focusing on that business will result in an expanding customer base while providing better financial performance and value for our shareholders.”