Cohu's Delta Design Unit Receives Intel's Preferred Quality Supplier Award.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 29, 2001

Cohu, Inc. (NASDAQ:COHU) today announced that its Delta Design unit was named a recipient of Intel Corporation's 2000 Preferred Quality Supplier (PQS) award for outstanding performance in providing products and services deemed essential to Intel's success. Delta Design was awarded for its efforts to supply Intel with test handling equipment. Delta Design and 24 additional PQS award winners were honored at a celebration in Burlingame, Calif. on March 27.

"Delta Design is honored to receive Intel's Preferred Quality Supplier Award," said James A. Donahue, President and CEO, Cohu, Inc. "PQS criteria are rigorous and this recognition confirms the value of the efforts of our dedicated employees to continuously improve the quality of the products and services we provide to our valued customers, like Intel."

"Intel is impressed with the level of quality Delta Design has achieved in its processes and products while managing rapid growth in manufacturing capacity and engineering capability," said Isaac Hooper, Material Handling Systems Manager for Intel Assembly Test Capital Equipment Development. "Delta Design developed the test handler technology we needed and produced it in volume, ahead of schedule. Delta Design's robust Continuous Improvement Program is delivering impressive refinements, increasing reliability and extending the life of the equipment. Delta Design has set high expectations for quality performance."

PQS awards are part of Intel's Supplier Continuous Quality Improvement (SCQI) process to encourage suppliers to strive for excellence. To qualify for PQS status, suppliers must score highly on a quality systems assessment and a supplier report card, as well as meet challenging performance expectations against an improvement plan.

Intel also recognized PQS award winners with an advertisement in the Wall Street Journal and the Asian Wall Street Journal on March 29.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

Delta Design, a subsidiary of Cohu, Inc., in San Diego, Calif. designs, develops and manufactures semiconductor test handling equipment. Delta Design is the world's largest supplier of IC test handlers for logic devices and the largest U.S. manufacturer of semiconductor test handling equipment. In 2000, Delta Design's sales of semiconductor equipment exceeded $250 million. Intel uses Delta Design test handling equipment in its manufacturing lines for microprocessors, mixed-signal processors and chipset products.