PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Nine Months Ended
	July 27,			July 29,
	2008			2007
Cash flows from operating activities:
Net income (loss)	$	(211,001	)	$	24,161
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization		79,794			72,234
Gain on sale of facility		-			(3,027	)
Minority interest in income of consolidated subsidiaries		1,456			2,424
Impairment of goodwill		138,535			-
Impairment of long-lived assets		66,873			-
Changes in assets and liabilities and other		(9,740	)		(1,718	)
Net cash provided by operating activities		65,917			94,074
Cash flows from investing activities:
Purchases of property, plant and equipment		(94,941	)		(56,951	)
Purchases of short-term investments and other		(327	)		(5,465	)
Proceeds from sales of investments and other		3,558			48,253
Proceeds from sale of facility and other		-			5,783
Investment in joint venture		(2,598	)		(1,000	)
Net cash used in investing activities		(94,308	)		(9,380	)
Cash flows from financing activities:
Repayments of long-term borrowings		(179,968	)		(94,587	)
Proceeds from long-term borrowings		139,640			3,369
Proceeds from issuance of common stock		-			631
Other		(950	)		(1,485	)
Net cash used in financing activities		(41,278	)		(92,072	)
Effect of exchange rate changes on cash		790			(1,991	)
Net decrease in cash and cash equivalents		(68,879	)		(9,369	)
Cash and cash equivalents, beginning of period		146,049			129,425
Cash and cash equivalents, end of period	$	77,170		$	120,056
Supplemental disclosure of cash flow information:
Change in accrual for purchases of property, plant and equipment	$	(40,144	)	$	16,480
Capital lease obligation for purchases of property, plant and
equipment	$	61,662		$	-