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Vishay Lowers Q3 Guidance

MALVERN, Pa. — Vishay Intertechnology, (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced that is has revised its guidance for the third quarter of 2011.

Vishay now expects revenues to be $625 to $655 million for the quarter with a mainly volume-driven gross margin reduction. This compares to previous guidance by the Company for revenues of $675 to $715 million with an also mainly volume-driven gross margin reduction. The Company will not comment further on guidance for the fourth quarter or calendar year 2011.

“The anticipated seasonal pick up during the current quarter did not materialize. The expected inventory reduction of our products in the distribution channel is occurring while the slowdown in the consumer and computing end markets did not reverse,” said Dr. Gerald Paul, Vishay’s President and CEO.

Dr. Paul concluded, “Despite the current softening of demand, our growth strategy as outlined in our recent investor presentation continues to be management’s focus. We remain committed to intensifying internal growth, supplemented by small acquisitions and we don’t intend to reduce our investment in technical personnel or research and development. Even in the current environment we expect robust cash flow from operations, substantially in excess of our capital expenditures.”

{complink 6199|Vishay Intertechnology Inc.}

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