Siliconix Reports First Quarter Income of $0.40 Per Share

Siliconix Reports First Quarter Income of $0.40 Per Share 


SANTA CLARA, Calif., May 3  /PRNewswire-FirstCall/ -- Siliconix incorporated
(NASDAQ:SILI), an 80.4% subsidiary of Vishay Intertechnology, Inc. (NYSE:VSH),
today announced net income of $11.9 million, or $0.40 per share, for the first
quarter ended April 2, 2005.  This is an increase of 19% over the net income of
$10.0 million, or $0.33 per share, in the fourth quarter of 2004 and a decrease
of 15% from the net income of $14.0 million, or $0.47 per share, in the first
quarter of 2004.  Sales for the first quarter of 2005 were $103.5 million, a
decrease of 3% from the $106.3 million in the fourth quarter of 2004 and 14%
from the $120.7 million for the first quarter of 2004.

The gross margin for the first quarter of 2005 was 28%, compared to 25% in the
fourth quarter of 2004 and 30% in the first quarter of 2004.  The sequential
improvement resulted from an improved product mix, cost reductions, material
savings and in-house capacity utilization, offset by a very slight decline in
average selling prices.  The decline of the gross margin year over year
resulted from a significant reduction in average selling prices and a drop in
volume, offset somewhat by an improved product mix, continuous cost reductions
and material savings.

Research and development expenses were flat sequentially as the Company
continues to fuel the need for innovation and invention.  Selling, marketing
and administration expenses were flat sequentially and decreased 4% quarter-
to-quarter, due to lower commissions based on the reduced sales volume.

Dr. King Owyang, Siliconix President and CEO, said, "Our bookings improved
sequentially for the second consecutive quarter, even though our major
distribution customers' inventory policies remain very conservative.  One
factor driving this phenomenon is that these distributors do not want to have a
significant amount of lead-containing product on their shelves, as some of
their customers have suddenly demanded lead-free products.  This in turn
creates challenging inventory management issues for us.  We can make every
product we sell in lead-free form, but not all end-users are ready for lead-
free products."

He continued, "We are hesitant to conclude that we are in the midst of a
significant recovery, but we continue to believe that our three key markets,
cellular phones, portable computers and digital consumer appliances, will
experience moderate growth in 2005.  We also believe that the first quarter
represents the bottom of the current downturn, and we are continuing our
capacity expansion program according to plan so that we may better serve our
customers."

He noted, "We introduced a total of 38 new products in the first quarter of
2005, offering continuous improvement in terms of cost relief and performance
advantages for our customers.  Included in our releases are an expansion of our
analog switch low voltage family in our MicroFOOT(R) and SC- 70 packages.  Our
Power IC line continues to expand with the addition of white LED drivers and
half-bridge motor control devices.  In our Power MOSFET line we introduced our
breakthrough 1.5V gate-rated process ideal for low voltage applications such as
cell phones.  We have added a series of products in the 200V arena for active
clamp fixed telecom applications in a variety of packages.  Finally, our high
threshold, low resistance product offers best in class performance for "under
the hood" automotive applications. We continue our focus on design activity,
successfully completing 307 new designs in consumer, computer, communication
and automotive applications.  We are also pleased with our design efforts on
reference designs for complementary products."

He 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 marketplace and
financially. The Company's financial position remains very strong; we are
debt-free and continue to finance our growth with internal profits."

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 2004 worldwide sales of $466.1 million, the company's facilities include a
company-owned Class 1 wafer fab dedicated to the manufacture of power products
in Santa Clara, Calif., and a Class 1 wafer fab located in Itzehoe, Germany,
utilized under a lease arrangement. 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 25,000 people. Vishay can be
found on the Internet at http://www.vishay.com/.

The Siliconix results will be discussed during the Vishay Intertechnology, Inc.
conference call scheduled for Tuesday, May 3, 2005 at 11:00 AM (EDT). The
dial-in number for the conference call is 800-230-1766 (612-332-0636 if calling
from outside the United States or Canada).  The conference operator will
require the following information in order to admit you into the call: Company
Name: Vishay Intertechnology, Inc.; and Moderators: Vishay Executives. There
will be a replay of the conference call from 2:30 PM (EDT) on Tuesday, May 3,
2005 through 11:59 PM (EDT) on Sunday, May 8, 2005.  The telephone number for
the replay is 800-475-6701 (320-365-3844 if calling from outside the United
States or Canada).  The access code is 779818.

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,
2004 Report on Form 10-K filed with the Securities and Exchange Commission
("SEC") on March 15, 2005, as amended by its Form 10- K/A filed with the SEC on
April 22, 2005.  You are urged to refer to the Company's Form 10-K, as amended,
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.

                           SILICONIX INCORPORATED
               COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS*
                                  Unaudited

                                               Fiscal quarter ended
  (In thousands, except per share         April 2,    Dec. 31,    April 3,
   amounts)                                 2005        2004        2004

  Net sales                               $103,525    $106,282    $120,667
  Cost of sales                             74,471      79,247      84,855

  Gross profit                              29,054      27,035      35,812

  Operating expenses:
  Research and development                   4,537       4,514       5,294
  Selling, marketing, and administration    12,674      12,723      13,224

  Operating income                          11,843       9,798      17,294
  Interest income (expense)                  1,506       1,254         463
  Other income (expense) - net               1,972       1,505         291

  Income before taxes and minority
   interest                                 15,321      12,557      18,048
  Income taxes                               3,358       2,533       3,963
  Minority interest in income of
   consolidated subsidiary                      60          60          60
  Net income                               $11,903      $9,964     $14,025

  Net income per share (basic
   and diluted)                              $0.40       $0.33       $0.47

  Shares used to compute earnings per
   share                                    29,879      29,879      29,879


  *   On February 1, 2005, the Board of Directors of Siliconix approved the
      acquisition by Siliconix of Vishay Semiconductor Itzehoe GmbH
      ("VSIG") from Vishay Intertechnology, Inc.  In accordance with
      generally accepted accounting principles for a merger of entities
      under common control, this transaction has been recorded in a manner
      similar to a pooling of interests.  Accordingly, these financial
      statements have been combined to include the accounts of Siliconix
      incorporated and VSIG (renamed "Siliconix Itzehoe GmbH") for all
      periods presented.  Additional information on this basis of
      presentation is described in Note 1 to the Combined Consolidated
      Financial Statements, which is included in the Siliconix Annual
      Report on Form 10-K filed with the Securities and Exchange
      Commission.


                           SILICONIX INCORPORATED
                    COMBINED CONSOLIDATED BALANCE SHEETS

                                               April 2,         December 31,
  (In thousands)                                 2005              2004
                                              (Unaudited)
  Assets
  Current assets:
    Cash and cash equivalents                   $286,921          $305,739
    Accounts receivable, net                      39,130            36,553
    Accounts receivable from affiliates           23,647            22,189
    Inventories                                   74,677            69,987
    Other current assets                          28,225            29,577
    Deferred income taxes                          4,970             4,780
      Total current assets                       457,570           468,825

  Property and equipment, at cost:
    Land                                           1,715             1,715
    Buildings and improvements                    63,013            62,686
    Machinery and equipment                      491,279           480,488
                                                 556,007           544,889
    Less accumulated depreciation                369,576           361,654
      Net property and equipment                 186,431           183,235
  Goodwill                                         7,445             7,445
  Other assets                                    24,439            24,197
      Total assets                              $675,885          $683,702

  Liabilities and Stockholders' Equity
  Current liabilities:
    Accounts payable                             $24,171           $31,668
    Accounts payable to affiliates                28,528            30,743
    Payable to Vishay for VSIG                       -              10,200
    Accrued payroll and related compensation      10,724            10,938
    Other accrued liabilities                     42,366            42,331
      Total current liabilities                  105,789           125,880

  Accrued pension benefits                         3,188             3,129
  Deferred income taxes                           12,862            12,860
  Other non-current liabilities                   62,935            62,228
  Minority interest                                3,203             3,143
      Total liabilities                          187,977           207,240

  Commitment and contingencies

  Stockholders' equity:
    Common stock                                     299               299
    Additional paid-in-capital                    54,685            54,684
    Retained earnings                            434,134           422,231
    Accumulated other comprehensive loss          (1,210)             (752)
      Total stockholders' equity                 487,908           476,462
      Total liabilities and
       stockholders' equity                      675,885           683,702

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


DATASOURCE: Siliconix incorporated



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

incorporated of Siliconix incorporated, [phone]



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

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