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Cohu's Delta Design Unit Announces New High Speed Pick-and-Place Handler

SAN JOSE, Calif., SEMICON West, July 18, 2001 - Cohu, Inc. (NASDAQ/COHU) through its Delta Design unit announced today its new Castle EC handler for logic and mixed signal device applications. The Castle EC is the next generation of Delta's Castle Lx, one of the most successful products in Delta Design's history. The Delta Castle EC is a tri-temp system that allows for testing of up to nine devices in parallel. "The system is a high speed handling solution for today's test cells", said Colin Scholefield, VP Sales & Marketing. "The Castle EC has our latest generation control system, featuring a scalable architecture for future expansion of its capabilities".

The Castle EC is interface compatible with the existing Castle Lx system and offers simple and quick device changeover. The handler permits the addition of external process modules, such as input loading, extended sort categories, laser mark, etc. "Castle EC's flexibility, simplicity, and expandability make it an excellent addition to our pick-and-place product offerings", commented Ben Jedrysik, Marketing Manager.

Certain matters discussed in this release 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, risks associated with acquisitions, the cyclical and unpredictable nature of capital expenditures by semiconductor manufacturers; inventory write-offs; 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 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.

Delta Design is a leading supplier of test-handling solutions used by semiconductor manufacturers in final test operations and is exhibiting at Semicon West in booth 11034.

For press releases and other information of interest to investors, please visit Cohu's website at www.cohu.com. Contact: John Allen - Investor Relations (858) 848-8106.

Contact: Kevin Brennan - Director of Marketing, Delta Design (978) 889-4303