Cohu and HP to Provide Integrated Test Solution for Direct RDRAMs.

WASHINGTON, D.C.--(BUSINESS WIRE)--October 20, 1998--Cohu Inc. (Nasdaq: COHU) and its Cohu Semiconductor Equipment Group (SEG) today announced that it has teamed up with Hewlett-Packard Co. to produce an integrated production test cell for the at-speed volume production testing of Direct RDRAM memory ICs.

The integrated test cell, combines the testing efficiency of the new HP 95000 HSM with Cohu's Delta Castle automated device handler, will be shown in HP's booth, No. 2101, at the International Test Conference, being held here through Oct. 22.

"Capitalizing on a strong working relationship of many years, our cooperative efforts provide a superior solution for high-speed memory testing. Customer reaction has already been very positive." said James A. Donahue, president of Cohu SEG, which includes the Delta Design and Daymarc subsidiaries of Cohu Inc.

"HP recognizes the strategic value of providing total test solutions for our customers," said John Scruggs, HP vice president and general manager of the Automated Test Group. "Providing total test solutions is how we can save our customers both time and money: by integrating an advanced, high-speed test system with a state-of-the-art automated device handler."

The integrated test cell will offer high throughput, supporting up to 16 ICs in parallel, and featuring the industry's smallest footprint -- less than 10 square meters. The combined HP 95000 HSM Series and Castle Handler Test Cell delivers a complete solution for high-speed memory production testing. It includes a new high-fidelity signal interface to the device under test (DUT), and resolves the mechanical, and thermal issues that often affect test accuracy and repeatability.

HP and Cohu already have begun accepting orders for their turnkey solution. Memory manufacturers interested in the integrated test-cell solution can obtain pricing and ordering information from Cohu or HP.

About HP

Hewlett-Packard Co. is a leading global provider of computing, Internet and intranet solutions, services, communications products and measurement solutions, all of which are recognized for excellence in quality and support. HP has 127,200 employees and had revenue of $42.9 billion in its 1997 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About Cohu

Cohu is the largest U.S. based and one of the world's largest suppliers of test handling equipment used by semiconductor manufacturers in final test operations. Cohu, with sales and service personnel worldwide, also manufactures closed circuit television, metal detection, and microwave equipment.

Certain matters discussed in this report 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 length and severity of the current slowdown in demand for semiconductor equipment; Cohu's ability to convert new products under development into production on a timely basis, realize acceptable profit margins on such products and support product development and meet customer requirements for next generation equipment; the impact of instability in global economic markets, particularly in Asia; the effect of competitive products; the volatility of capital expenditures by semiconductor manufacturers and other risks indicated in filings with the Securities and Exchange Commission. Cohu assumes no obligation to update the information in this report.