ORBOTECH Receives Major Order From LG.PHILIPS LCD CO., LTD. in Korea: Flat Panel Display Inspection Equipment Order Totals Over $8.0M.

Business and Technology Editors

YAVNE, Israel--(BUSINESS WIRE)--Jan. 11, 2000

ORBOTECH LTD. (NASDAQ/NM: ORBK) today announced the receipt of a major order from LG.PHILIPS LCD CO., LTD., the joint venture between LG Electronics Inc. and Royal Philips Electronics, totaling over $8.0 million in value, for multiple FPI-7090(TM) Automated Optical Inspection ("AOI") systems to be utilized in their liquid crystal flat panel display ("LCD") production operation in Korea.

Commenting on the order, a senior company spokesman at LG.Philips LCD Co., Ltd., said, "The TFT LCD monitor market is expected to grow with 35% average for the coming five years, and there is still a shortage of supply. Through this joint venture, we are positioning ourselves to be the leading supplier of the most innovative LCD monitors on the market."

Mr. Doron Eidelman, President of Orbotech's Display Division, added, "Many of our customers are now proactively increasing their production operations and adding advanced manufacturing equipment to accommodate accelerating market growth. This joint venture between two very well known manufacturers is an excellent example of this forward momentum and this order illustrates the significant role that Orbotech systems have as critical production tools."

LG.Philips LCD Co., Ltd. is destined to become the world's largest supplier of Active Matrix Liquid Crystal Displays.

LG Electronics (LGE) has pioneered and led the Korean electronics industry for over four decades. Spanning the globe through operations in 27 countries and distribution throughout 150 nations, LGE is now forging its image as a leading global enterprise. LGE is an integrated electronic goods manufacturer that operates three business divisions: Displays, Home Appliances, and Multimedia. Its products range from consumer electronics and home appliances like TVs, VCRs, refrigerators, and air conditioners to display devices such as CPTs/CDTs, monitors, PDPs, and information systems products including CD-ROMs and PCs.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of US$ 33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 227,600 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.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 the timely development and acceptance of new products, delays in factory testing and acceptance, industry trends, technology or pricing competition 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.

ORBOTECH LTD. (NASDAQ/NM SYMBOL: ORBK) is the world leader in the design, development, manufacture and marketing of AOI systems for use in the manufacture of printed circuit boards ("PCB"s) and flat panel displays ("FPD"s) and is a leader in the design, development, manufacture and marketing of imaging solutions for PCB production and of AOI systems for use in the electronics assembly industry. In addition, the Company markets computer aided manufacturing ("CAM") solutions for PCB production and is continuing to develop its proprietary AOI technologies for use in other applications both within and outside the electronics industry.