ORBK Orbotech Ltd. - Ordinary Shares

ORBOTECH LTD. (NASDAQ/NM SYMBOL: ORBK) today announced that it has signed a definitive agreement to acquire 3 D - Danish Diagnostic Development A/S (�DDD�), a privately-held Danish company that develops and manufactures gamma cameras for nuclear medicine. DDD is the world�s leading manufacturer of cardiac gamma cameras, which it markets primarily in the United States through major industry suppliers that distribute them under their own brands. Orbotech will pay approximately $39 million to the stockholders of DDD for the acquisition of all of the outstanding shares of DDD. In addition, Orbotech will pay to the stockholders of DDD an earn-out, capped at approximately $6.5 million, based on DDD�s performance during the years 2007 and 2008. The acquisition will be financed from internally-generated funds. The Company believes that this transaction has the potential to generate approximately $30 million in annual revenues, based on DDD�s current product offering and its short term research and development plans; and it is expected to be immediately accretive to Orbotech on a non-GAAP basis. Commenting on the announcement, Mr. Rani Cohen, Chief Executive Officer of Orbotech, said: �This acquisition is an important step in our strategy for growth and diversification into medical imaging as an original equipment manufacturer (OEM) of highly innovative technologies. DDD is an exceptional company with highly talented employees, world-class know-how and products whose outstanding caliber is recognized by the largest players in the industry. Moreover, the acquisition presents an opportunity for Orbotech to leverage its strong operational capabilities and resources.� Mr. Cohen added: �The medical imaging industry presents solid growth drivers that will complement and balance Orbotech�s core electronics business and deliver immediate and future value to our shareholders.� The transaction is expected to close today. Following completion, DDD will form part of Orbotech�s medical imaging operations. About 3 D - Danish Diagnostic Development A/S Established in 1987, DDD is a privately owned company that develops and manufactures dedicated nuclear medicine gamma cameras. DDD is a development and supply partner to the major OEMs worldwide which sell its products to privately practicing cardiologists and hospitals. Since 2004, the company has been principally owned by Axcel II, a Danish private equity fund. Operating from Denmark, DDD has 42 permanent employees, including a strong team specializing in the development of highly sophisticated camera equipment. With some 20 years of expertise in diagnostic imaging, DDD has world class know-how in multiple aspects of camera system design and manufacturing for nuclear medicine applications and is the world's leading manufacturer of dedicated nuclear cardiac cameras. Over the years, DDD has worked with major vendors/industry suppliers and built a unique track record by developing the largest worldwide installed base of cardiac gamma cameras. 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. In addition, the Company is engaged in the development and manufacture of specialized application products for the nuclear medical imaging industry. 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 30 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.