Release Details

Delta Design, Inc., Wins Intel's Preferred Quality Supplier Award

March 22, 2004

Award for outstanding performance in providing products and services deemed essential to Intel's success

POWAY, Calif., March 22, 2004 -- Cohu, Inc. (NASDAQ:COHU) today announced that its Delta Design unit was named a recipient of Intel Corporation's Preferred Quality Supplier (PQS) award for outstanding performance in providing products and services deemed essential to Intel's success. The company was awarded for its efforts in supplying Intel with semiconductor test handling equipment. Delta Design, Inc., and 28 additional PQS award winners will be honored at a celebration in Burlingame, California, on March 23. "Delta Design is proud to receive Intels Preferred Quality Supplier Award, the fourth consecutive year that Delta has been recognized with a quality award by Intel," said James A. Donahue, president and chief executive officer, Cohu, Inc. "PQS criteria are demanding and to earn this recognition required high performance and consistent execution in product development, manufacturing and customer support by the entire Delta Design team."

"Delta Design continues their tradition of excellence in support of Intel's test handling needs. The PQS award was given to Delta Design this year for their flawless execution, and their exemplary process and quality improvements to enable our aggressive product roadmap. Delta Design anticipates our needs, does their homework, and then delivers," said Randy Bollig, director of Assembly Test Equipment Development at Intel. "Its always a pleasure to engage on new projects with Delta".

The PQS awards are part of Intel's Supplier Continuous Quality Improvement (SCQI) process that encourages suppliers to strive for excellence and continuous improvement. To qualify for PQS status, suppliers must score 80 percent on a report card that assesses performance and ability to meet cost, quality, availability, delivery, technology and responsiveness goals. Suppliers must also manage and deliver on a challenging improvement plan and a quality systems assessment. Additional information about the SCQI program is available at supplier.intel.com/quality/. Intel will also recognize PQS award winners on March 23 with an advertisement in the U.S., Europe and Asian editions of The Wall Street Journal.

About Intel

Intel, the worlds largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

About Delta Design, Inc., a Cohu Company

Delta Design, a subsidiary of Cohu, Inc., in Poway, California designs, develops and manufactures semiconductor test handling equipment. Intel uses Delta Design test handling equipment in its manufacturing lines for microprocessors, mixed-signal processors, and chipset products.

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; Sales (978) 486-1060 or visit www.deltad.com.