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                                                                    EXHIBIT 99.1
[KULICKE & SOFFA LETTERHEAD]

NEWS For Immediate Release


  KULICKE & SOFFA ANNOUNCES OFFERING OF CONVERTIBLE SUBORDINATED NOTES

Willow Grove, PA-August 7, 2001-Kulicke & Soffa Industries Inc. (Nasdaq: KLIC)
today announced its intention, subject to market and other conditions, to raise
approximately $100 million (excluding proceeds of an over-allotment option, if
any) through a private offering of convertible subordinated notes due 2006 to
certain qualified institutional investors. No other details were provided.

The Company stated that it intends to use a portion of the net proceeds of the
offering to repay the remaining $47.0 million of indebtedness outstanding under
its credit facility and use the balance for working capital and general
corporate purposes.

The notes and the common stock issuable upon conversion have not been registered
under the Securities Act of 1933, as amended, or applicable state securities
laws, and are being offered only to qualified institutional buyers in reliance
on Rule 144A under the Securities Act. Unless so registered, the notes and
common stock issued upon conversion of the notes may not be offered or sold in
the United States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state securities laws.

This news release does not constitute an offer to sell or the solicitation of an
offer to buy the securities. Any offer of the securities will be made only by
means of a private offering memorandum.

Kulicke & Soffa designs, manufactures and markets capital equipment, packaging
materials, and test interconnect solutions, and provides flip chip bumping
services for sale to companies that manufacture and assemble semiconductor
devices.

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CONTACT
Nancy R. Kyle
Director, Investor Relations
215-784-6436 phone
215-784-6167 fax
nkyle@kns.com

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