ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced that on July 2, 2009, the United States District Court for the Eastern District of Wisconsin ruled that it would grant the motion by Orbotech Ltd. (the �Company�) to dismiss the complaint (as amended) filed against the Company by �GE Healthcare�, which describes itself as a unit of General Electric Company. In granting the motion on the ground of forum non conveniens, the Court ruled that the weight of both public and private factors support resolution of the action in the Israeli courts. Dismissal of the complaint is subject to Orbotech�s acceptance of certain conditions set by the Court designed to ensure the adequacy of the Israeli forum. Orbotech intends to accept the conditions imposed by the Court and has until July 16, 2009 to do so. The Company continues to believe it has good arguments in response to the claims made in the complaint should these claims be made in an Israeli forum and intends to defend the matter vigorously in such instance. For more information about this matter and the related arbitration matter in Israel, see the Company�s Annual Report on Form 20-F for the year ended December 31, 2008 and its subsequent report on Form 6-K, both filed with the United States Securities and Exchange Commission.

About Orbotech Ltd.

Orbotech is principally engaged in the design, development, manufacture, marketing and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. Orbotech�s products include automated optical inspection (AOI), production and process control systems for printed circuit boards (PCBs) and AOI, test and repair systems for flat panel displays (FPDs). The Company also markets computer-aided manufacturing and engineering (CAM) solutions for PCB production. In addition, through its subsidiary, Orbograph Ltd., the Company develops and markets character recognition solutions to banks and other financial institutions, and has developed a proprietary technology for web-based, location-independent data entry for check processing and forms processing; and, through its subsidiaries, Orbotech Medical Denmark A/S and Orbotech Medical Solutions Ltd., is engaged in the research and development, manufacture and sale of specialized products for application in medical nuclear imaging. 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. Orbotech�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 within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words �anticipate,� �believe,� �could,� �will,� �plan,� �expect� and �would� and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management�s expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to its operations and business environment, all of which are difficult to predict and many of which are beyond the Company�s control. Many factors could cause the actual results to differ materially from those projected, including cyclicality in the industries in which the Company operates, a sustained continuation or worsening of the worldwide economic slowdown, the timing and strength of product and service offerings by the Company and its competitors, 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 in the Company�s SEC reports, including the Company�s Annual Report on Form 20-F. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.

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