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Kulicke & Soffa Announces Organizational Change
and Additional Production Moves to Asia

Willow Grove, PA—February 4, 2002—Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced a series of organizational and operational changes designed to reduce costs and enhance efficiencies.

Effective immediately, the Company has implemented a functional organizational structure with certain disciplines combined across product lines. This replaces the traditional product-focused organization and will allow better integration of the Company's various product offerings. Under this model, marketing, engineering, manufacturing, and customer operations will operate with responsibility for all equipment, packaging materials, and test interconnect products. Excluded from this model are the flip chip and substrate divisions which will continue to operate as separate business units.

An immediate result of this change is a reduction in work force due to redundancies created by combining like functions from different business units. The Company expects to eliminate approximately 200 positions throughout all levels of the organization.

This functional realignment supports a parallel decision to establish a supply chain in China for the Company's equipment products and to shift a portion of the manufacturing of capillaries, saw blades and selected test products to a facility outside of Shanghai. In addition, machine integration for the microelectronics group of products will join ball bonder manufacturing at the K&S Singapore facility. The transfer of microelectronics to Singapore will begin later this year; the China facility is expected to be fully operational by late 2003.

In connection with these changes, K&S will record certain resizing charges in the second fiscal quarter ending March 31, 2002.

C. Scott Kulicke, chairman and chief executive officer, commented, “We continue to examine options that will allow us to maintain our technical leadership position while reducing our overall cost structure. This organizational change and the transfer of important manufacturing operations to Asia are additional steps in that process.”

Kulicke & Soffa is the world's leading supplier of semiconductor interconnect equipment, materials and technology. Chip and wire solutions combine wafer dicing, die bonding and wire bonding equipment with saw blades, die collets, wire and capillaries. Flip chip solutions include wafer bumping technology, die placement equipment and UltraVia™ high density substrates. Chip scale and wafer level packaging solutions include Ultra CSP® technology. Test interconnect solutions include standard and vertical probe cards, ATE interface assemblies and ATE boards for wafer testing, and test sockets and contactors for all types of packages. Kulicke & Soffa's web site address is

Caution Concerning Forward Looking Statements
This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future 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 our expectations. These factors include, but are not limited to, those listed or discussed in Kulicke & Soffa Industries' 2001 Annual Report on Form 10-K and: the risks that we will not be successful in implementing our plans to reorganize or move manufacturing to Asia or will not realize the planned efficiencies and benefits of such changes; acts of terrorism and violence; overall global economic conditions; the risk of order postponements or cancellations; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; potential instability in foreign capital markets; the volatility in the demand for semiconductors and our products and services; the risk of failure to successfully manage our expanding and more diverse operations; and other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

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Nancy R. Kyle
Director, Investor Relations

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