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Except for historical information, the matters discussed in thispresentation are forward-looking statements that are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including industry trends, the timing and strength of the Company's or competitors’ new product and service offerings, the mix of product and service revenues, changes in the Company's or competitors’ business or pricing strategies, changes in the prevailing political and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis and other risks detailed from time to time in the Company’s SEC reports. The Company assumes no obligation to update the information herein contained.

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 SAFE HARBOR

Disclaimer

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WHO ARE WE?

Orbotech is a world leader in providing yield and productivity enhancement solutions to the electronics industry

Orbotech’s dedicated worldwide team ensures that it delivers the most innovative technologies

Virtually every electronic device in the world is produced using Orbotech systems

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THE INDUSTRIES WE SERVE

Bare PCB Production5000 systems installed

PCB Assembly1400 systems installed

FPD Manufacturing500 systems installed

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Other3%

PCB Bareboard

51%

Display35%

PCB Assembly

11%

SALES DISTRIBUTION 2006 BY PRODUCT LINES

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GLOBAL INFRASTRUCTURE

IsraelHeadquartersMain R&D CenterProduction

Europe6 Offices 3 CS Centers2 R&D Centers

N. America2 Offices 5 CS Centers

Japan2 Offices1 CS Center 1 R&D CenterPacific

18 Offices 20 CS Centers

Over 1500 Employees in over 35 Offices

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Europe9%

North America

12%Other

3%

Korea14%

Taiwan16%

Japan18%

China28%

SALES DISTRIBUTION 2006BY REGION

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90% of current product sales are from products introduced over the last 24 monthsOver 400 Scientists and EngineersOver $60M annual R&D budget

R&D INVESTMENT

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New

technologiesfor core m

arkets

AOI

CAM

DirectImaging

Plotting

New Technologies

GROWTH STRATEGY

BarePCBs

NewMarkets

Flat-PanelDisplays

YieldManagement

Metrology

AssembledPCBs

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Medical Imaging Equipment Market

Synergy with Orbotech’s imaging technology

Large market with continuous high growth

Market paying premiums for differentiating & unique imaging technologies

ENTERING NEW MARKETS

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ORBOTECH MEDICAL SOLUTIONS

Acquisition of Imarad Imaging Systems

Sensors for detection of Gamma Radiation using CZT

Initial market opportunity: the fast growing cardio-nuclear medicine camera

Total potential market for CZT sensors in 2010 > $250M

Bare PCB Production

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BARE PCB PRODUCTION

Automated Optical Inspection (AOI)

Laser Direct Imaging (LDI)

Laser Plotting

Computer Aided Manufacturing (CAM)

Orbotech is the world leader in

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Expected growth of 5-7% in next few years

Over 80% of the market in the Far East

- China is world’s largest PCB producer

Aggressive expansion plans

Cell phones driving the industry

- Over 1BN phones in 2007

Fastest growing segments: microvia, IC substrates, flex

BARE PCB MARKET SUMMARY

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MISSION & KEY OBJECTIVES

PCB Division MissionImproving yields and productivity through technology and people

Key ObjectivesBe the first choice supplier of advanced solutions for the PCB industry

Continue to develop innovative technologies for the PCB industry

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STRATEGY FUNDAMENTALS

Aim for business & technology leadership

Customer support is a major contributor to our business

Improve net contribution by focus on cost reduction & efficiency

Focus on growth

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PRODUCTS & SOLUTIONS

PhototoolInspectionPlotting

Contact Printing

Direct ImagingCAM

Inner &

Outer LayerInspection

Final Processing

ToAssembly

Genesis 2000

LP-9008

HDI

Discovery

High Volume

DiscoveryDiscovery

Cost-efficientProduction

Vision

Special Needs

DiscoveryPT

Paragon

Significant presence along production line

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DISCOVERY™

Industry’s Best Selling AOI

Simple with Push-to-Scan™- The easiest AOI solution in the industry

Intelligent with Visual Intelligence™- Detect all you want and only what you want

Powerful impact with new AOI economics- Maximum output with maximum availability

Over 600 sold worldwide in the last 18 months

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PARAGON™

Industry’s Only Field Proven Laser Direct Imaging (LDI) SystemEnabling technology for complex and advanced applicationsIncreased adoption for high-end mainstream applicationsAdditional opportunities in packaging and solder maskFuture direction: higher resolution and throughput

Over 200 LDI systems sold worldwide

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ORBOTECH LDI CUSTOMERS Cell Phone Applications

Used by most of the top cell phone makers

PCB Assembly

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PCB ASSEMBLY

Orbotech is a leading provider of

Automated Optical Inspection

Process Control Software

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MARKET SUMMARY

EMS and ODM market will reach $227B (TFI 10/2005), high growth > 12% from outsourcing

Volume production will continue to concentrate in China

Low volume & automotive will continue to be in Europe, USA and Japan

Overall AOI market > $470M in 2008 (PRG 9/2005)

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ASSEMBLY AOI DRIVERS

Smaller components, finer pitch- Impossible to control by visual inspection- Multiple stage inspection is required

Limited access for electrical test

Traceability- Component version and warranties control- Production information and process control

Outsourcing trend (safety margin when not manufactured by OEM)

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ASSETS & CHALLENGES

Advanced, 3-D technology platform - Simple, cost-effective, high performance

Complete, integrated solution- AOI for all inspection stages & applications- Closed loop process control & yield management tools

Extensive global infrastructure and local support

Expert AOI know-how and experience

Fragmented market, highly competitive AOI landscape

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Placement & Post Reflow Inspection

PRODUCTS & SOLUTIONS

Symbion P36

ADVISOR - Process Control Tools

Paste Printer IC Mounter Reflow OvenChip Shooter

Paste Inspection

Symbion S36 Vantage S22

VeriFastVerification& Repair

VeriFastVerification& Repair

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SYMBION™ SERIES

New generation solder paste and post-reflow AOI systems

Specialized 3-D & 2-D detection

Very simple operation

Ultra-fast speed

Integrated process control software

Over 230 new generation systems sold worldwide

Flat Panel Display Manufacturing

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FPD MANUFACTURING

Orbotech is the world’s leading provider of

Yield Management

Automated Optical Inspection

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ORBOTECH PRESENCE

Presence at all LCD fabs

Proven solutions for all generations

Future-proof technology: OLED, plastic-based & other specialties

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MARKET SUMMARY

Main driver for investments is LCD TV growth

Analysts & manufacturers continue upward revisions

Main results- Continued glass growth due to cost effectiveness- Continued quality and yield management emphasis- Increased importance of Orbotech in process

Fab cost = > $3B

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IMPLICATIONS OF LARGE-SIZE TV

TV Market

Image Quality

Cheaper

Larger

Yield Management

More & NewTest Methods

Rigorous QA& Repair

Cost-EffectiveProcess Control

FPD product strategy requires an integrated, multi-function yield management solution

Manufacturing

Complex Design

MinimizeHandling

HugeGlass

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Micro Defect Detection

Metrology and Macro Inspection

OFFERING A COMPREHENSIVE SOLUTION

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ORBOTECH CONNECTS IT ALL

30 fabs already implemented the EYES-2020 solutionAll new fabs purchase EYES-2020 with AOI systems

EYES 2020™

AOIAOI

AOIAOI

Defect Location

Classify Defects

CD Measurement

Layer Comparison

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Bare Glass

Completed Array

EYES-2020

FPI-6590

FPI-7598

InVision

PRODUCTS & SOLUTIONS

Pointer

SuperVision

Deposition

Clean & Strip

Photo Coat Expose Develop

Etch

(Wet/Dry)

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RECENT SUCCESSES

Metrology success- CD/O on AOI installation big success in G7 Korean TV FAB

- Won customer appreciation & recognition

Record implementation- World’s first G8 AOI installation - record time- Customer praised quick contribution to their ramp-up

Reflecting our leadership in technology and performance

Customer Support

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CUSTOMER SUPPORT

Strategic & necessary for customer relationships

Differentiating factor vs. our competition

20% of our revenue

Source of recurring revenue

Consistent contributor to profitability

On-going presence at customer sites

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CUSTOMER SUPPORT INFRASTRUCTURE

Over 500 employees in 35 countries

Supporting over5000 AOI systems,600 Plotters, 200 LDI and 4000 CAM stations

5 response centers, 5 customer training centers

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CUSTOMER SUPPORT SERVICES

Response centersTraining centersRemote accessSoftware upgrades & ECOsSpare parts inventoriesApplication supportConsulting and site auditsPreventive maintenanceLocal satellite officesLocal adaptation

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CUSTOMER SUPPORT EXAMPLE:RESPONSE CENTERS

Convenient, efficient “hotline”Expert-level staffRemote diagnostic capabilitiesMany calls closed over the phoneDispatched calls for on-site service with diagnostic information

Increases customer satisfaction and our profitability

Financials

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REVENUES

($ Millions)

163.0

65.4

245.6

69.2

303.3

76.6

333.3

83.1

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2003 2004 2005 2006

ServiceSales

228.4

315.2

379.9416.5

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REVENUES BY QUARTER

($ Millions)

67.2

100.5 101.4

77.5

89.3

104.9

82.793.7

106.9

87.896.4

103.3

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4

200420052006

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NET INCOME

0.23

0.99

1.30

1.75

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2003 2004 2005 2006

($ per share) from ongoing operations1.91 (Excluding option expense)

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NET INCOME BY QUARTER

($ per share) from ongoing operations

0.15

0.32

0.43

0.260.29

0.46

0.290.33

0.49

0.290.360.38

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Q1 Q2 Q3 Q4

2004

2005

2006

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MARGIN ANALYSIS

42.7 44.0 43.0 45.5

0

10

20

30

40

50

2003 2004 2005 2006

3.3

11.2 12.0

14.3

02468

10121416

2003 2004 2005 2006

3.5

10.311.4

14.0

0

2

4

6

8

10

12

14

2003 2004 2005 2006

Gross Margin(On-going Operations)

Operating Income(On-going Operations) (On-going Operations)

Net Income

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11.4

43.0

75

120

4.2

12/31 2005

3.510.314.0Net Profit to Revenues(% ongoing operations)

42.744.045.5Gross Profit (%)

767377Equity/Assets (%)

134118126Day’s Sales Outstanding

4.43.84.6Current Ratio

12/312003

12/312004

12/312006

FINANCIAL RATIOS

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