ORBOTECH LTD. Enters Electronics AssemblyInspection.

YAVNE, Israel--(BUSINESS WIRE)--July 24, 1997--

By acquiring the automated optical inspection activity from W. Schuh GmbH, an established manufacturer of automated optical

inspection for printed circuit board assemblies.

ORBOTECH LTD. (NASDAQ/NM SYMBOL: ORBKF) today

announced that it has signed an agreement to acquire a controlling interest in the automated optical inspection ("AOI") activity of W. Schuh GmbH & Co., of Bad-Pyrmont, Germany ("Schuh"), a private entity, and an established manufacturer of AOI systems for printed circuit board ("PCB") assemblies manufacturing, for approximately DM 6 million and 85,209 Ordinary Shares of Orbotech. In addition, Orbotech has an option to purchase the remaining equity interest in Schuh for a period of 5 years.

Schuh's main product, an in-line, post-solder inspection system, was first introduced in 1989. Its latest model, the VT8000, has been on the market for two years. With more than 140 installations in Europe, mainly in Germany, the product has contributed significant cost savings and yield increases to its customers. Leading companies in the communications, automotive and consumer electronic industries have installed the VT8000 in all of their manufacturing lines. Schuh's revenues for 1996 were approximately DM 10 million.

Post solder inspection is a critical step in the electronics assembly process. It includes verifying the presence and positioning of components, the quality of solder joints, and the absence of solder bridges (shorts). Until automated inspection equipment became available, post solder inspection had to be performed by human inspectors using optical aids. As PCB assemblies become smaller and denser, manual inspection becomes increasingly time consuming and inefficient, resulting in higher manufacturing costs, lower yields and more product returns.

"We believe that every assembly line should eventually have a post-solder automated inspection machine," said Yochai Richter, President and CEO of Orbotech, which has become the world leader in providing AOI solutions for the PCB manufacturing industry, "and when it comes to AOI for electronics manufacturing, we can bring this technology to market faster than anybody else."

Mr. Wolfgang Schuh, founder and General Manager of Schuh: "We are excited by our new partnership with Orbotech. We believe we have the best product, and we believe Orbotech is the best company to market, sell and support it worldwide. Orbotech not only has the global presence and reputation, but also understands what it takes to implement such solutions in a production line."