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VISHAY ANNOUNCES $5.5 MILLION INSURANCE SETTLEMENT AND AN INCREASED SHIFT OF SOME EUROPEAN OPERATIONS TO ISRAEL

 MALVERN, Pa., Sept. 13 /PRNewswire/ -- Dr. Felix Zandman, chairman and chief executive officer of Vishay Intertechnology, Inc. (NYSE: VSH) announced today that the company had successfully settled a business interruption insurance claim which it had filed to collect for damages related to the collapse of a portion of a building roof in January 1992 at its 350,000 square foot plant in Dimona, Israel.
 Zandman stated: "The $5,500,000 award is based on the production delay we experienced." The company had recognized $2 million of this award during the first quarter of the current calendar year. The remaining $3.5 million (less expenses) will be recognized in the quarter ended Sept. 30, 1993.
 In a related matter, Zandman announced that Vishay is entering into negotiations to build a third manufacturing facility in Israel. This facility, which will be approximately 200,000 square feet, will be located near Haifa. The company's original Israeli facility of 100,000 square feet is located in Holon, near Tel Aviv.
 The company also announced that in light of the continued recession in Europe, it is in the process of reviewing its European manufacturing operations and may decide to further restructure some of those operations in order to accelerate its manufacturing buildup in Israel. This should further reduce its manufacturing costs and therefore increase the profitability of Vishay in the future.
 Commenting on the above items, Zandman stated: "The combination of these events will have a positive effect on our earnings for the third quarter of this calendar year. Concerning the insurance settlement, we have accepted this settlement to avoid a lengthy litigation, although we believe the loss was greater. This business interruption delayed our plans for expansion in Israel, and we are doing our best to catch up. We are expecting substantial earnings growth in the third quarter of 1993; but, it is not certain whether we will be on plan."
 The company announced that the increased worldwide demand for surface mount components (SMDs) which it experienced during the first half of 1993 should continue during the third and fourth quarters of calendar 1993. Zandman commented: "Vishay has the broadest offering in surface mount technology of passive electronic components in the U.S. and Europe. Our bookings in all SMD products are increasing, and we are adding capacity to fulfill this demand which is generated by a greater demand for semiconductors. Furthermore, Vishay is introducing new low- cost thin film resistor/capacitor networks required by a new generation of personal computers, palm-size computers and other products requiring miniaturization."
 Vishay Intertechnology, Inc., a FORTUNE 500 company, is a leading U.S. and European producer of a wide range of passive electronic components. In the United States and Europe, Vishay is the largest manufacturer of fixed resistors, resistive sensors and tantalum capacitors, and a leading producer of film capacitors, inductors, and other passive electronic components. The company's products are used in a broad range of industries.
 /delval/
 -0- 9/13/93
 /CONTACT: Robert A. Freece, vice president and treasurer, of Vishay Intertechnology, 215-644-1300/
 (VSH)


CO: Vishay Intertechnology, Inc. ST: Pennsylvania IN: CPR SU:

JM-MP -- PH022 -- 1406 09/13/93 15:23 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
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