Cohu Announces Facilities Acquisition.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Oct. 30, 2000

Cohu, Inc. (Nasdaq:COHU) today announced that it agreed to acquire a 338,000 square-foot building on approximately 20 acres in Poway, California. The purchase price of approximately $21.3 million was funded from the Company's cash reserves. The Company plans on selling its facilities in San Diego, California and moving Cohu's corporate headquarters and the San Diego operations of its Delta Design subsidiary to the Poway facility in 2001.

Delta Design, a leading manufacturer of semiconductor test handling equipment, currently occupies 171,000 square-feet in four buildings in San Diego's Kearny Mesa area. Poway is a suburb of San Diego and the new facility is approximately ten miles from the Company's current San Diego location.

James A. Donahue, President and Chief Executive Officer, commented, "As a result of rapid growth in recent years, Delta Design has expanded into all three buildings we own in Kearny Mesa, and into nearby leased space. In Poway, we will consolidate Delta's San Diego operations under one roof and configure manufacturing efficiently on a single floor. Along with Delta's 102,000 square foot facility in Littleton, Massachusetts, we now have ample space for continued growth in our semiconductor equipment business for the foreseeable future."

Certain matters discussed in this report including statements concerning future growth are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected or forecasted. Such risks and uncertainties include, but are not limited to, the Company's ability to convert new products under development into production on a timely basis, support product development and meet customer delivery and acceptance requirements for next generation equipment; the effect of competitive products; the concentration of revenues in a limited number of customers; the cyclical and unpredictable nature of capital expenditures by semiconductor manufacturers; and other risks addressed in the Company's filings with the Securities and Exchange Commission including the most recently filed Form 10-K and Form 10-Q. The Company assumes no obligation to update the information in this report.

Cohu is a leading supplier of test handling solutions used by the global semiconductor industry as well as a supplier of closed circuit television, metal detection and microwave radio equipment. Additional information on Cohu is available on the internet at www.cohu.com