Siliconix Reports 37% Increase in Sales and 64% Increase in Earnings for Second Quarter 2004 Compared to Second Quarter 2003

Siliconix Reports 37% Increase in Sales and 64% Increase in
Earnings for Second Quarter 2004 Compared to Second Quarter 2003 


SANTA CLARA, Calif., Aug. 3  /PRNewswire-FirstCall/ -- Siliconix incorporated
(NASDAQ:SILI), an 80.4% subsidiary of Vishay Intertechnology, Inc. (NYSE:VSH),
announced net income of $15.2 million, or $0.51 per share, for the second
quarter ended July 3, 2004.  This is an increase of 64% over the net income of
$9.3 million, or $0.31 per share, in the second quarter of 2003 and 9% over the
net income of $14.0 million, or $0.47 per share, in the first quarter of 2004. 
Sales for the second quarter of 2004 were $120.7 million, 37% more than the
sales of $88.2 million for the second quarter of 2003 and a 2% increase over
the sales of $118.4 million for the first quarter of this year.

Net income for the first half of 2004 was $29.2 million, or $0.98 per share, an
increase of 52% over the net income of $19.3 million, or $0.64 per share, for
the first half of 2003.  Sales for the first half of 2004 were $239.1 million,
an increase of 29% over the sales of $186.0 million for the first half of 2003.

The gross margin for the second quarter of 2004 improved to 33%, compared to
30% for the first quarter of 2004 and 31% for the second quarter of 2003. The
sequential improvement was a result of focusing on higher margin products,
reducing the use of subcontractors with increasing in-house capacity and
successfully continuing the on-going cost reduction and material saving
programs.

Research and development expenses for the second quarter of 2004 increased
$600,000 sequentially and $850,000 compared to the second quarter of 2003, as
the Company increased spending for development of new products and
technologies.  Selling, marketing and administration expenses increased by
$800,000 from the previous quarter and $2.8 million compared to the second
quarter of 2003.  The increased spending was due largely to higher sales
commissions resulting from the increased sales and increased legal expenses
relating to enforcement of its patent portfolio.

Dr. King Owyang, Siliconix President and CEO, said, "Bookings remained very
strong in the second quarter of 2004, with a book-to-bill ratio of 1.18,
compared to 1.25 for the previous quarter.  At the end of the quarter, our
backlog was 16% higher than at the end of the first quarter.  The broad-based
demand that we noted last February and May, encompassing all of our major
markets and all geographic areas, has continued.  We did observe, however, a
decline in bookings in June and July. It appears to us that this is a result of
inventory correction and seasonal market forces, and it does not signal the end
of the recovery that began in the third quarter of last year."

He continued, "The high demand levels have created longer lead times, but
customers continue to request short-term delivery.  As we reported in May, most
of our product lines remain at full capacity utilization, and we are on track
to double our capital investment compared to 2003 to address our in- house
capacity needs.  We are also exploring ways to increase our capacity in 2005
and beyond."

He noted, "We continue to enhance our product offering with break-through
specifications and innovative packaging options.  In the second quarter, we
released a total of 44 new products, including the launch of our high density
P-Channel family in 40V and 60V selections.  This platform family offers
performance ratings as low as 4.2 milliohms for efficient, low frequency
switching.  Our newest addition to our MICRO FOOT(R) line of chip scale
products offers a 31% performance improvement over the closest competing
product in a similar form factor.  Adding to our Power IC product offerings, we
introduced our latest Buck-Boost controller for portable hand held
applications.  Our second quarter design activity remains strong with the
addition of 336 new design wins in automotive, portable communication, power
supply, consumer goods and computer applications."

Dr. Owyang concluded, "Our consistent approach to solution-based investments
will continue to enhance our leadership in key markets. At the same time, our
cost reduction programs and improving manufacturing efficiencies position us to
further penetrate power management applications in the telecommunications,
portable computer, consumer, industrial, and automotive markets.  We believe
that this strategy is behind our success, both in the market place and
financially. The Company's financial position continues to be very strong; we
are debt free and are financing our growth with internal profits.  In the
second quarter, we generated more than $40 million in cash from operations, and
our cash position is $324 million."

Siliconix is a leading manufacturer of power MOSFETs, power ICs, analog
switches, and multiplexers for computers, cell phones, fixed communications
networks, automobiles, and other consumer and industrial electronic systems.
With 2003 worldwide sales of $392.1 million, the Company's facilities include a
Class 1 wafer fab dedicated to the manufacture of power products in Santa
Clara, California, and an affiliated Class 1 wafer fab located in Itzehoe,
Germany.  The Company's products are also fabricated by subcontractors in
Japan, Germany, China, Taiwan, and the United States.  Assembly and test
facilities include a company-owned facility in Taiwan, a joint venture in
Shanghai, China, and subcontractors in the Philippines, China, Taiwan, and
Israel.

Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH),
is one of the world's largest manufacturers of discrete semiconductors (diodes,
rectifiers, transistors, and optoelectronics) and selected ICs, and passive
electronic components (resistors, capacitors, inductors, and transducers). 
Vishay's components can be found in products manufactured in a very broad range
of industries worldwide.  Vishay is headquartered in Malvern, Pennsylvania, and
has operations in 17 countries employing over 27,000 people. Vishay can be
found on the Internet at http://www.vishay.com/.

Statements contained herein that relate to the Company's future performance,
including statements with respect to anticipated improvements in the Company's
business and business climate, future product innovation, and implementation of
cost savings strategies, are forward-looking statements within the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
statements are based on current expectations only, and are subject to certain
risks, uncertainties, and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated or
projected. Among the factors that could cause actual results to materially
differ include: general business and economic conditions, particularly in the
markets that the Company serves, cancellation of orders, difficulties in new
product development, and other factors affecting the Company's operations,
markets, products, services, and prices that are set forth in its December 31,
2003 Report on Form 10-K filed with the Securities and Exchange Commission. You
are urged to refer to the Company's Form 10-K for a detailed discussion of
these factors. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.

NOTE:  These results will be discussed during the Vishay Intertechnology, Inc.
conference call scheduled for Tuesday, August 3, 2004 at 11:00 a.m. eastern
time. Participants can join the call by dialing 888-428-4479 (U.S. and Canada
only).  If you are outside the U.S. and Canada, the number you will need to use
is 651-291-0618.  The conference operator will require the two following pieces
of information in order to admit you into the call: (1) Company Name - Vishay
Intertechnology, Inc.; and (2) Moderators - Vishay Executives.  There will also
be a live audio webcast of the conference call. This can be accessed directly
from the investor relations section of the Vishay website
(http://ir.siliconix.com/).  A taped replay of the call will be available
through 11:59 PM eastern time on Sunday, August 8, 2004 on a dial-in basis and
will also be available on a permanent basis on our website beginning August 4,
2004.  The phone number to hear the dial-in replay is 800-475-6701 (U.S. and
Canada) or 320-365-3844 (if you are outside the U.S. and Canada). Refer to
access code 739190 when calling to hear the recording.

  Siliconix incorporated
  Consolidated Statements of Operations
  (Unaudited, In thousands, except
  for per share information)

                                     Three Fiscal Months  Six Fiscal Months
                                            Ended                Ended
                                       July 3,  June 28,  July 3,   June 28,
                                        2004     2003      2004      2003



  Net sales                           $120,693  $88,208  $239,076  $186,034
  Cost of products sold                 81,165   60,753   164,038   130,680

  Gross profit                          39,528   27,455    75,038    55,354

  Operating expenses:
  Research and development               5,877    5,026    11,171     9,713
  Selling, marketing, and
   administrative expenses              13,911   11,077    27,007    22,058

  Operating income                      19,740   11,352    36,860    23,583

  Interest income                          689      616     1,297     1,201
  Other income (expense) net              (865)     (43)     (582)       25

  Income before taxes and minority
   interest                             19,564   11,925    37,575    24,809
  Income tax provision                  (4,291)  (2,603)   (8,240)   (5,424)
  Minority interest in income of
   consolidated subsidiary                 (60)     (60)     (120)     (120)

  Net income                           $15,213   $9,262   $29,215   $19,265

  Net income per share (basic and
   diluted)                              $0.51    $0.31     $0.98     $0.64

  Shares used to compute net income
   per share                            29,879   29,879    29,879    29,879


  Siliconix incorporated
  Consolidated Balance Sheets
  (Unaudited, In thousands)                     July 3,         December 31,
                                                  2004              2003
  Assets
  Current assets:
    Cash and cash equivalents                   $323,782          $279,464
    Accounts receivable, net                      52,066            49,807
    Accounts receivable from affiliates           19,308            27,800
    Inventories                                   59,269            63,229
    Other current assets                          22,174            24,429
    Deferred income taxes                          3,508             3,508
      Total current assets                       480,107           448,237

  Property and equipment, at cost:
    Land                                           1,715             1,715
    Buildings and improvements                    58,214            57,761
    Machinery and equipment                      380,329           369,350
                                                 440,258           428,826
    Less accumulated depreciation                300,905           284,735
                                                 139,353           144,091

  Goodwill                                         7,445             7,445
  Other assets                                     6,104             1,397
      Total assets                              $633,009          $601,170

  Liabilities and Stockholders' Equity
  Current liabilities:
    Accounts payable                             $34,180           $31,196
    Accounts payable to affiliates                28,821            32,256
    Accrued payroll and related
     compensation                                  9,263             8,776
    Other accrued liabilities                     32,984            30,843
      Total current liabilities                  105,248           103,071

  Accrued pension benefits                         3,261             3,137
  Deferred income taxes                           15,498            15,498
  Other non-current liabilities                   52,380            52,161
  Minority interest                                3,263             3,143
      Total liabilities                          179,650           177,010
  Commitments and contingencies
  Stockholders' equity:
    Common stock                                     299               299
    Additional paid-in-capital                    59,373            59,373
    Retained earnings                            394,834           365,619
    Accumulated other comprehensive
     loss                                         (1,147)           (1,131)
      Total stockholders' equity                 453,359           424,160
      Total liabilities and
       stockholders' equity                     $633,009          $601,170

   Contact:  Peter G. Henrici, Vice President,
             Investor Relations, Siliconix incorporated
             (NASDAQ NSM: SILI)
             408-567-8400

             Robert A. Freece,
             Executive Vice President
             Vishay Intertechnology, Inc.
             (NYSE:VSH)
             610-251-5252


DATASOURCE: Siliconix incorporated



CONTACT:  Peter G. Henrici, Vice President, Investor Relations, Siliconix

incorporated, [phone]; or Robert A. Freece, Executive Vice President

of Vishay Intertechnology, [phone]



Web site:  http://www.siliconix.com/

http://ir.siliconix.com/ 

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