Vishay Reports Record Fourth Quarter Earnings of $.42 Per Share

MALVERN, PA. Dr. Felix Zandman, Chairman and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH), announced today that net earnings in the fourth quarter of 1999 were a record $36,502,000 or $0.42 per share. This compares with net earnings before special charges of $14,200,000 or $0.17 per share for the fourth quarter of 1998. The net loss for the fourth quarter of 1998 was $37,211,000 or $0.44 per share after special charges of $51,411,000 or $0.61 per share. Net sales in the fourth quarter of 1999 were a record $467,999,000 as compared to $411,658,000 for the fourth quarter of 1998.

For the twelve months ended December 31, 1999, sales were $1,760,091,000 compared with $1,572,745,000 in the previous year. Net earnings, before non- operational items, for the year ended December 31, 1999 were $97,799,000 or $1.14 per share. After non-operational expenses of $14,562,000 or $0.17 per share, net earnings for the year ended December 31, 1999 were $83,237,000 or $0.97 per share. The non-operational loss in 1999 was primarily a result of the sale of Nicolitch, S.A., a French manufacturer of printed circuit boards, a non-core business of Vishay which was completed on March 26, 1999. Net earnings before special charges for the year ended December 31, 1998 were $63,547,000 or $0.75 per share. After special charges of $55,335,000 or $0.65 per share, net earnings for the year ended December 31, 1998 were $8,212,000 or $.10 per share.

Earnings per share amounts for all periods reflect a 5 for 4 stock split paid June 22,1999.

Commenting on the results for the fourth quarter, Dr. Zandman stated, "We are pleased to report record results for the fourth quarter of 1999, which was also a significant improvement over the earnings per share of $0.30 reported in the third quarter of 1999. Business continues to be strong, particularly in the wireless communications market, where we sell 35% of our products, driven by cell phones. On a revenue increase of 14 percent, we were able to more than double our net earnings (before special charges).

"Gross profit for the quarter was 28% of sales as compared to 27% in the third quarter and 24% for the fourth quarter of last year. Operating profit for the quarter was 14% of sales, as compared to 9% of sales (before special charges) for the fourth quarter of last year. Net income before tax was 10% of sales, as compared to 5% of sales (before special charges) for the fourth quarter of last year, and net earnings was 8% as compared to 3% (before special charges) for the fourth quarter of last year. Our book-to-bill ratio for the quarter was 1.16 to 1 and our backlog increased to $505,000,000 at December 31, 1999, an increase of $196,000,000 from January 1, 1999.

"Long-term orders are not included in this backlog. We are increasing capacity in all of our major product lines to meet the continuing demand for our products. Our Siliconix operations have again, for the fourth straight quarter, reported record breaking sales and net earnings. The demand for Siliconix s products continues to be strong, especially in the wireless communication markets. By now, all of our product lines are experiencing strong demand. It started with semiconductors, followed by capacitors and presently resistors have started to show very strong demand. Our improvement in profitability can be attributed to production efficiencies, cost reduction programs including movement of labor to low cost countries, price stabilization, and in some products, price increases. Most of the price increases are still in the backlog and will now begin to be reflected in the first quarter of year 2000 and thereafter."

Dr. Zandman concluded, "Our cash generation is very strong. During the past calendar year, we reduced long-term debt by $158,000,000. With the current strong demand for our products, our continuing cost reduction programs, and aggressive new product introductions, the outlook for the year 2000 looks very bright."

Vishay Intertechnology, Inc. (NYSE: VSH) a Fortune 1,000 Company with annual sales of $1.8 billion, is the largest U.S. and European manufacturer of passive electronic components (resistors, capacitors, inductors) and a major producer of discrete semiconductors (diodes, optoelectronics, transistors), IrDCs (infrared communication devices), and power and analog switching integrated circuits. The Company s components are vital to electronic operations and can be found in products manufactured in a very broad range of industries worldwide. With headquarters in Malvern, Pennsylvania, Vishay employs over 20,000 people in 60 plants in the U.S., Mexico, Germany, Austria, the United Kingdom, France, Portugal, the Czech Republic, Hungary, Israel, Taiwan (ROC), China and the Philippines. Vishay can be found on the Internet at http://www.vishay.com.

Statements in this press release may contain "forward-looking" information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve a number of risks and uncertainties. Those factors primarily include a decline in demand for the Company s products, competitive pressures, recessionary trends, currency fluctuations, changes in laws, cancellation of government grants or tax benefits, labor unrest, factory under-utilization and capacity constraints. Please see the Company s September 30, 1999 Report on Form 10-Q filed with the Securities and Exchange Commission for a more comprehensive list of these factors.

Contact:
Vishay Intertechnology, Inc.
Robert A. Freece, Senior Vice President, or
Richard N. Grubb, Executive Vice President and Chief Financial Officer, of
Vishay Intertechnology, 610-644-1300