Camtek Ltd. Announces Results for Third Quarter of 2007

Camtek Ltd. Announces Results for Third Quarter of 2007

Revenues $20.2 Million 32% Sequential Improvement

MIGDAL HAEMEK, Israel, November 14 /PRNewswire-FirstCall/ -- Camtek Ltd. (NASDAQ:CAMT)(TASE:CAMT), announced today its financial results for the third quarter ended September 30, 2007.

Revenues for the third quarter of 2007 were $20.2 million, 23% below the $26.3 million reported in the third quarter of 2006, and sequentially 32% above the $15.3 million reported in the second quarter of 2007. These revenues are slightly above the guidance range of $17-20 million provided for the third quarter.

Gross profit margin for the third quarter of 2007 was 37.6%, compared to 53.2% for the third quarter of 2006, and 40.8% for the second quarter of 2007.

The Company reported third quarter net income of $85 thousand, or $0 per diluted share, compared to a net income of $4.2 million, or $0.14 per diluted share, in the third quarter of last year, and a loss of $3.5 million, or ($0.11) per basic share, in the second quarter of 2007.

"I am pleased with our third quarter results as we achieved our revenues and cost structure goals, despite the softness in the semiconductor industry," commented Rafi Amit, Camtek's CEO. "Sales to the PCB industry were strong, indicating both an increasing level of activity and the success of our new 3G AOI product lines to this market. While the softness in demand in the semiconductor sector continued throughout the third quarter, we did see an increase in incoming orders during the third quarter which we expect to recognize in the fourth quarter."

Mr. Amit continued, "In the third quarter we have realized the full contribution of the cost reduction measures we have implemented throughout the year. We recorded positive operating cash flows of $2.9M, as well as positive operating and net income. We continue to monitor our expenses carefully while maintaining our ability to support the expected increasing demand for our equipment when the market picks up. We expect a slight sequential increase in fourth quarter revenues."

Camtek will hold a conference call today, Wednesday November 14, at 9 a.m. EST, 4 p.m. Israel time. Rafi Amit, CEO, and Ronit Dulberg, CFO, will host the call and will be available to answer questions.

To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call, referencing the "Camtek third quarter 2007 results conference call".

US toll free: +1-888-935-4575 at 9:00 a.m. Eastern Time Israel toll free: +1-809-246-002 at 4:00 p.m. Israel Time International: +1-718-354-1387

The conference will also be webcast live from a link in Camtek's website http://www.camtek.co.il/. For those unable to participate, the teleconference will be available for replay on Camtek's website beginning 2 hours after the call.

About Camtek Ltd.

With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. This press release is available at http://www.camtek.co.il/.

This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions as well as due to risks identified in the documents filed by the Company with the Securities and Exchange Commission.

Camtek Ltd.

Consolidated Balance Sheets (in thousands, except share data)

September December 2007 2006 U.S. Dollars ASSETS CURRENT ASSETS Cash and cash equivalents 15,271 23,358 Marketable securities 3,566 2,099 Accounts receivable, net 24,123 29,434 Inventories 35,174 41,414 Due from affiliates 208 180 Other current assets 2,371 2,372 Deferred tax 65 65

Total current assets 80,778 98,922

Fixed assets, net 14,671 10,729

Deferred tax 376 369 Other assets 931 786

1,307 1,155

Total assets 96,756 110,806

LIABILITIES

CURRENT LIABILITIES Accounts payable -trade 7,030 11,801 Due to affiliates 517 814 Other current liabilities 11,184 12,831

Total current liabilities 18,731 25,446

Convertible loan 5,000 5,000 Liability for employee severance benefits 257 222

Total liabilities 23,988 30,668

SHAREHOLDERS' EQUITY Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares, issued 31,145,634 in 2007 and 31,085,174 in 2006, outstanding 30,134,015 in 2007 and 30,073,555 in 2006. 132 132 Additional paid-in capital 59,768 59,420 Accumulated other comprehensive loss Unrealized loss on marketable securities 1 (1) Retained earnings 13,860 21,580 73,761 81,131 Treasury stock, at cost (1,011,619 (993) (993) shares in 2007 and 2006)

Total shareholders' equity 72,768 80,138

Total liabilities and shareholders' equity 96,756 110,806

Camtek Ltd.

Consolidated Statements of Operations (in thousands, except share data)

Nine Months ended Three Months ended Year ended September 30, September 30, 2006 2007 2006 2007 2006 U.S.

U.S. dollars U.S. dollars dollars

Revenues 49,941 79,049 20,165 26,293 100,055

Cost of revenues 30,099 36,776 12,576 12,299 48,442

Gross profit 19,842 42,273 7,589 13,994 51,613

Research and development 9,148 8,169 2,353 3,275 11,831 costs

Selling, general and administrative expenses 18,021 19,730 5,020 6,207 27,850

27,169 27,899 7,373 9,482 39,681