Cascade Microtech, Inc.Investor Presentation

Safe Harbor and Non-GAAP Measures

This presentation includes “forward-looking” statements within the meaning of the Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding Cascade’s anticipated revenue growth, increased revenue from certain products, related increases in customer demand, future quarterly earnings, correlation between bookings and revenues, facility changes and utilization, and integration and restructuring of product lines. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify these and other forward-looking statements. All such statements are based on current expectations, estimates and projections about the Company’s business based in part on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including changes in demand for the Company’s products and product mix; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; difficulties or unexpected costs or delays in the integration of the operations, employees, products, sales channels, strategies, and technologies of acquired businesses; difficulties or unexpected costs or delays in the consolidation of facilities and manufacturing operations; the inability to achieve anticipated savings from cost reduction efforts; the potential failure of expected market opportunities to materialize; the potential inability to realize expected benefits and synergies; potential diversion of management’s attention from our existing business as well as that of acquired businesses; potential adverse effects on relationships with our existing suppliers, customers or partners and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports, including the Company’s Annual Report on Form 10-K. In addition, such statements could be affected by general industry and market conditions and growth rates and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation.

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Cascade Microtech is a Compelling Investment

Significant share in important select semiconductor markets– Unique high speed electrical and mechanical measurement expertise

protected by a strong IP portfolio (258 granted US patents)

Vast majority of semiconductor devices are characterized using Cascade products

High growth opportunities in adjacent markets

Scalable business model creating a clear path to significant profitability

New management practices and processes installed that have improved execution

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Premier Wafer Probing Company

Experts in enabling precision measurements of integrated circuits on-wafer.

Product portfolio probe systems engineering probes production probe cards sockets

Our products are used in a diverse set of applications Semiconductor companies,

universities, government, military and commercial entities.

This enables our customers to Accurately model and characterize

semiconductor devices and processes

Reduce their product costs with improved yield

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Outstanding Customers in All Major SectorsThe Who’s Who in the Semiconductor Industry

Integrated Device Manufacturer

Foundry

Fabless Government/Institute Research

Subcons

University ResearchThe vast majority of

semiconductor devices are characterized using Cascade products.

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Megatrends Fuel Opportunities for Cascade

Industry demands

accelerate the need for our

unique products

• Faster buses• Shrinking geometries• Device integration• Power

Computing Devices

Lower test costs

• Integration of functions• Shrinking geometries• Faster digital interfaces• Power mgmt

Consumer Devices

3D TSV stacksKnown- Good Die

• Higher voltages• Reliability• Power• LED

Green Power Devices

Measurement Diversification

• High-frequency RF• Shrinking geometries• Lower voltages• Power

Wireless Devices

Higher bandwidths

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Mar

ket S

ize

Gro

ss M

argi

ns

Our Customers’ Ecosystem Model

Physically touch the wafer to get signals to the end of a cable

Cable connects to an instrument to measure voltage, current, frequency, power, light

Measurement data is then analyzed to determine performance

Compare device measured performance to specifications/model

Source: 2009/10 industry reports; Cascade Microtech

30 – 49%

49 – 51%

43 – 55%

82 – 83%

$1.6B

$1.0B*Wafer test instruments

$1.8B

$1.3B

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Cascade enables our customers’

success through our

unique ability to

TOUCH the wafer.

Our Growth Opportunity in the Touch MarketTotal Available Market Size

$1,600M (2009)

$650

$80

$900

$30

Expanding into non-RF Production

Probe Cards is the major opportunity

2% Market Share

50% Market Share

80% Market Share

0% Market Share

Production Probes

Engineering Probes

Engineering Systems

Production Systems

8Source: Cascade Microtech, VLSI Research

FormFactorJEMMJC

SV Probe

TEL Accretech

Production Probe Cards: Growth opportunity is to expand beyond RF probe cards

2009 TAM: $900M

Product introductions, leveraging Cascade technology and customer base, significantly increase serviceable market

Source: Cascade Microtech

$-

$50

$100

$150

$200

$250

$300

2010 2011 2012 2013

SAM Profile for Cascade Microtech

3D-TSVMPUGPUWLCSPRF Wireless

Prod

uctio

n Pr

obe

Car

d SA

M ($

M)

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Second Growth Opportunity is to move Probe Systems into Measure-Analyze

Total Available Market Size$1,600M (2009)

$650

$80

$900

$30

*Wafer test instruments

Targeted growth will be driven by integrating measure and analyze

capabilities

*Wafer test instruments

2% Market Share

50% Market Share

80% Market Share

0% Market Share

Production Probes

Engineering Probes

Engineering Systems

Production Systems

10Source: Cascade Microtech, VLSI Research

FormFactorJEMMJC

SV Probe

TEL Accretech

Expansion into Adjacent Markets Creates Opportunities for Probe Systems

0

50

100

150

200

250

2010 2011 2012 2013

Prod

uctio

n Sy

stem

s SA

M ($

M)

SAM Profile for Cascade Microtech

Cryo/MEMs

HBLED

Power

Probe Systems

Source: 2009 VLSIR, Cascade Microtech

Product introductions, leveraging Cascade technology and customer base,dramatically increases the serviceable market by 2013

2009 TAM: $250M11

Cascade’s 2010 Income Statement

Strong revenue growth. Annual run rate based upon Q3 exceeds $100M Improving GAAP gross margins Reducing operating expenses Operating profit achieved in Q3 EBITDAS in Q3 of $1.7m, equaled 7% of revenue

(000's) Q1 2010 Q2 2010 Q3 2010 YTD 2010Revenue $19,959 $23,439 $25,273 $68,671Cost of Sales 14,573 15,120 14,850 44,543Gross Profit $5,386 $8,319 $10,423 $24,128

% 27.0% 35.5% 41.2% 35.1%

R & D 3,466 3,041 3,038 9,545SG & A 10,036 8,273 7,275 25,584Operating Exp $13,502 $11,314 $10,313 $35,129

% 67.6% 48.3% 40.8% 51.2%

Operating Profit -$8,116 -$2,995 $110 -$11,001% -40.7% -12.8% 0.4% -16.0%

Other -56 555 -423 76Taxes 772 -413 -42 317

Net Income -$7,400 -$2,853 -$355 -$10,608% -37.1% -12.2% -1.4% -15.4%

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Target Financial Model

Revenue Trough SuccessGM % 42% 48%Oper Exp % 42% 36%Oper Profit % 0% 12%EBITDAS 8% 18%

The financial model creates an infrastructure that reaches operating profit breakeven with quarterly revenue below Q3 2010 levels

The success model generates operating profit of 12% with significant EBITDAS

As larger markets are reached, revenue generation continues to grow, improving bottom line performance

Strong cash position and no debt coupled with strong cash flow, positions Cascade to invest and address larger markets

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Cascade Microtech Summary Leveraging unique technology and

expertise into high growth areas Investing in growth opportunities

– Strong differentiated leadership position Premier customers

– Strong relationships mean strong partnerships

Focused on delivering profitability via new business model – Encouraging results; improving balance

sheet Experienced management team focused

on execution of plan

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Appendix

Strong Balance Sheet

Strong cash position and no debt

Coupled with strong cash flow, positions Cascade to invest and address larger markets

Balance Sheet RatiosAverage DSO 62

Average Inventory Turns 2.8

Average Days AP 36

Current Ratio 4.9

Working Capital Position $50,562

Long Term Debt $0

Total Liabilities to Equity Ratio 0.25

(000's) Q3 2010Cash and investments 19,537Accounts receivable 18,315Inventories 21,282Prepaids and Other Current 4,392

Total Current Assets $63,526

Fixed assets 10,565Goodwill & Purchased intangibles 4,357Other assets 2,885

Total assets $81,333

Accounts payable 5,341Accrued liabilities 5,119Other Current Liabilities 2,504

Total Current Liabilities $12,964

Deferred Income Taxes 708Other Long-Term Liabilities 2,810

Total Liabilities $16,482

Equity $64,851Total Liabilities and Equity $81,333

Creating a Solid Financial Foundation

Focused on growing markets and business fundamentals, establishes Cascade as a leader that provides strong shareholder value and a sustainable business model.

(000s) 2009

Revenue $ 53,541

Cost of Sales 33,840

Gross Profit 19,701

% 36.8%

R&D 8,372

SG&A 22,291

OpEx 30,663

% 57.3%

Oper Profit -10,962

% -20.5%

Future Success Model

Revenue 100%

Cost of sales 52%

Gross margin 48%

OpEx 36%

Oper Profit 12%

SUSS Test acquisitionAdjacent Systems BusinessProduction Probes Broader MarketEngineering Probes Market Share

Fewer System DiscountsSystem Product ConsolidationFactory RationalizationProduction Probes Factory UtilizationSockets RestructuringSupply Chain Consolidation and focus

GM: 42% … 45% … 48% …

R&D: $10M - $13M per yearLeading Technology Innovator

Sales ChannelFacility ConsolidationBU Operating ExpensesCentralized Admin Functions

OpEx: 42% … 38% … 36% …

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Strong Executive Team

Eric StridCo-founder and CTO

Jeff KillianVP Finance and CFO

Steve HarrisExecutive Vice

President

Michael D. BurgerPresident and CEO

Mike KondratVP Marketing

Paul O’MaraVP Sales

and Support

Ellen RaimVP Human Resources

Steve MahonVP Operations

Extensive business, technical and market experience

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