Exhibit 99.1

NEWS for Immediate Release

Kulicke & Soffa Reports Third Quarter 2003 Results

A conference call to discuss these results will be held today beginning at 9:00 AM EDT. Interested participants may call 416-695-9753 for the teleconference or log on to http://www.kns.com/investors/webcast.asp to listen to the live audio or access the audio replay of this call, which will remain available on the company’s website.

Willow Grove, PA-July 24, 2003-Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced financial results for its third quarter of fiscal year 2003 ended June 30, 2003.

Revenue for the third fiscal quarter ended June 30, 2003 was $127.7 million compared to revenue in the quarter ended June 30, 2002 of $132.4 million. The loss from operations during the third fiscal quarter of 2003 was $5.8 million versus a loss of $17.2 million during the third fiscal quarter of 2002. The net loss for the third quarter ended June 30, 2003 was $11.4 million or a loss of $0.23 per fully diluted share versus a net loss of $18.1 million or a loss of $0.37 per fully diluted share in the same quarter of 2002.

C. Scott Kulicke, chairman and chief executive officer, commented on the quarter just ended, “Our cost reduction efforts are resulting in positive long-term improvements to the company’s operations, but costs associated with making those improvements effected the short-term results.” Included in the results for the June 2003 quarter were charges associated with the closure of certain test operations in Dallas of $2.0 million (comprised of an inventory write-down of $824 thousand and an asset impairment charge of $1.2 million). The selling, general, and administrative expense in the June 2003 quarter included a severance charge of $1.0 million associated with on-going employee reductions. However, that severance expense was favorably offset by the reversal of a $2.0 million reserve, previously established for potential obligations to U.S. Customs. Results for the previous June quarter of 2002 included charges of $2.1 million for resizing and $1.4 million for the start-up of the bonding tool manufacturing facility in China, as well as the expected transfer of microelectronics products to Singapore.

Net bookings for the third fiscal quarter ended June 30, 2003 were $139.0 million, compared to $109.0 million recorded in the quarter ended March 31, 2003. Backlog at June 30, 2003 was $55.0 million compared to backlog at March 31, 2003 of $44.0 million.

For the nine months ended June 30, 2003, revenue was $365.0 million compared to revenue for the nine months ended June 30, 2002 of $342.5 million. The net loss for the nine months ended June 30, 2003 was $48.3 million or a loss of $0.97 per fully diluted share compared to a net loss of $79.1 million or a loss of $1.61 per fully diluted share for the same period last year.

C. Scott Kulicke said “Shipments in the June quarter were in line with our expectations. In particular, we were pleased with the broadening customer base of the Maxum wire bonder, as well as the acceptance of the Nu-Tek at both subcontractors and IDM’s.”

He continued, “While market indicators are positive, we historically experience a seasonal decrease from the July quarter to the September quarter. Since the two trends may have an offsetting effect, our guidance is for flat revenue, plus or minus 5% for the quarter ending September 30, 2003.”

Kulicke & Soffa (Nasdaq: KLIC) is the world’s leading supplier of wire bonding equipment in the semiconductor assembly market. K&S is the only equipment supplier that also develops and manufactures the products that touch a semiconductor chip’s wire bonding pad surfaces, starting with electrical testing and ending with specially formed wire interconnections that remain as a part of the chip’s package. These products include: test probes; bonding wire; and capillaries, which provide an all-inclusive interconnect process when used with the company’s wire bonding equipment. In addition, the company offers wafer dicing equipment and cutting blade solutions as well as Flip Chip wafer bumping services and technology. Chip scale and wafer level packaging solutions include Ultra CSP^® technology. Test interconnect products include standard and vertical probe cards, ATE interface assemblies and ATE boards for wafer testing, as well as test sockets and contactors for all types of packages. Kulicke & Soffa’s web site address is http://www.kns.com. The full text of this earnings release and summary financial statements are available at http://www.kns.com/investors/news.htm.

Caution Concerning Forward Looking Statements

This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, those listed or discussed in Kulicke & Soffa Industries’ 2002 Annual Report on Form 10-K and: the risk of failure to successfully manage our operations; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the risk that anticipated cost savings will not be achieved; the volatility in the demand for semiconductors and our products and services; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; potential instability in foreign capital markets; and other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

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Company Contact: Michael Sheaffer, 215-784-6411, 215-784-6167 fax, msheaffer@kns.com

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share and employee data)

(Unaudited)

	Three months ended						Nine months ended
	June 30,						June 30,
	2002			2003			2002			2003
Net revenue	$	132,418		$	127,723		$	342,490		$	365,032
Cost of sales		97,398			96,459			271,451			273,919
Gross profit		35,020			31,264			71,039			91,113
Selling, general and administrative		34,278			23,581			101,201			81,656
Research and development, net		13,322			9,985			39,276			30,106
Resizing		2,104			—			13,387			(205	)
(Gain) / loss on disposal of assets		—			4			—			(117	)
Asset impairment		—			1,207			4,890			2,915
Amortization of intangibles		2,479			2,315			7,441			6,944
Operating expense		52,183			37,092			166,195			121,299
Loss from operations		(17,163	)		(5,828	)		(95,156	)		(30,186	)
Interest, net		(3,584	)		(4,174	)		(10,334	)		(12,418	)
Other income		—			—			10			—
Loss before income taxes		(20,747	)		(10,002	)		(105,480	)		(42,604	)
Income taxes		(2,645	)		1,350			(26,370	)		5,694
Net loss	$	(18,102	)	$	(11,352	)	$	(79,110	)	$	(48,298	)
Net loss per share:
Basic	$	(0.37	)	$	(0.23	)	$	(1.61	)	$	(0.97	)
Diluted	$	(0.37	)	$	(0.23	)	$	(1.61	)	$	(0.97	)
Weighted average shares outstanding:
Basic		49,263			49,766			49,148			49,639
Diluted		49,263			49,766			49,148			49,639
	Three months ended						Nine months ended
Additional financial data:	June 30,						June 30,
	2002			2003			2002			2003
Depreciation and amortization	$	10,384		$	9,433		$	33,877		$	28,939
Capital expenditures	$	5,594		$	3,718		$	15,449		$	7,917
							June 30,
							2002			2003
Backlog of orders							$	66,000		$	55,000
Number of employees								3,758			3,171

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

	September 30, 2002			(Unaudited) June 30, 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	85,986		$	46,903
Restricted cash		3,180			2,731
Short-term investments		22,134			9,382
Accounts and notes receivable (less allowance for doubtful     accounts: 9/30/02 - $6,033; 6/30/03 - $5,862)		89,132			100,387
Inventories, net		50,887			49,241
Prepaid expenses and other current assets		10,508			10,203
Deferred income taxes		16,072			11,820
TOTAL CURRENT ASSETS		277,899			230,667
Property, plant and equipment, net		89,742			73,679
Intangible assets, (net of accumulated amortization:     9/30/02 - $16,927; 6/30/03 - $23,890)		75,509			68,565
Goodwill		87,107			87,107
Other assets		8,425			7,324
TOTAL ASSETS	$	538,682		$	467,342
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Debt due within one year	$	186		$	122
Accounts payable		55,659			42,102
Accrued expenses		52,581			42,865
Income taxes payable		9,660			12,069
TOTAL CURRENT LIABILITIES		118,086			97,158
Long term debt		300,393			300,476
Other liabilities		14,106			11,719
Deferred taxes		36,774			32,522
TOTAL LIABILITIES		469,359			441,875
SHAREHOLDERS’ EQUITY
Common stock, without par value		199,886			202,744
Retained deficit		(119,103	)		(167,401	)
Accumulated other comprehensive loss		(11,460	)		(9,876	)
TOTAL SHAREHOLDERS’ EQUITY		69,323			25,467
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	538,682		$	467,342

KULICKE & SOFFA INDUSTRIES, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

Fiscal 2003:
				Packaging		Advanced
	Equipment			Materials		Packaging			Test
Quarter ended June 30, 2003:	Segment			Segment		Segment			Segment			Corporate			Consolidated
Net revenue	$	48,416		$	45,828	$	3,941		$	29,538		$	—		$	127,723
Cost of sales		32,240			35,070		4,780			24,369						96,459
Gross profit		16,176			10,758		(839	)		5,169			—			31,264
Operating costs		15,402			5,968		884			9,933			3,694			35,881
Asset impairment		—			—		—			1,207			—			1,207
Loss on disposal of assets		—			—		4			—			—			4
Income (loss) from operations	$	774		$	4,790	$	(1,727	)	$	(5,971	)	$	(3,694	)	$	(5,828	)
Nine months ended June 30, 2003:
Net revenue	$	145,880		$	128,987	$	11,846		$	78,319		$	—		$	365,032
Cost of sales		96,194			97,958		15,569			64,198			—			273,919
Gross profit		49,686			31,029		(3,723	)		14,121			—			91,113
Operating costs		51,511			19,777		4,578			31,124			11,716			118,706
Resizing		—			—		(102	)		(103	)		—			(205	)
Asset impairment		17			—		—			2,898			—			2,915
Gain on disposal of assets		—			—		(117	)		—			—			(117	)
Income (loss) from operations	$	(1,842	)	$	11,252	$	(8,082	)	$	(19,798	)	$	(11,716	)	$	(30,186	)
Fiscal 2002:
				Packaging		Advanced
	Equipment			Materials		Packaging			Test
Quarter ended June 30, 2002:	Segment			Segment		Segment			Segment			Corporate			Consolidated
Net revenue	$	50,815		$	44,754	$	6,094		$	30,755		$	—		$	132,418
Cost of sales		37,479			32,940		6,193			20,786			—			97,398
Gross profit		13,336			11,814		(99	)		9,969			—			35,020
Operating costs		20,615			7,133		5,539			12,315			4,477			50,079
Resizing costs		—			—		—			2,104			—			2,104
Income (loss) from operations	$	(7,279	)	$	4,681	$	(5,638	)	$	(4,450	)	$	(4,477	)	$	(17,163	)
Nine months ended June 30, 2002:
Net revenue	$	123,715		$	114,277	$	18,322		$	86,176		$	—		$	342,490
Cost of sales		108,020			86,705		19,194			57,532			—			271,451
Gross profit		15,695			27,572		(872	)		28,644			—			71,039
Operating costs		62,179			19,342		16,239			38,283			11,875			147,918
Resizing costs		6,064			736		1,104			4,900			583			13,387
Asset impairment		2,165			1,480		—			1,245			—			4,890
Income (loss) from operations	$	(54,713	)	$	6,014	$	(18,215	)	$	(15,784	)	$	(12,458	)	$	(95,156	)

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