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NYSEBHE
Benchmark Electronics Reports Earnings for Second Quarter 2003
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. a leading contract manufacturing provider, announced sales revenue of $449 million for the quarter ended June 30, 2003, compared to $404 million in the same quarter of the prior year and $448 million in the previous quarter. Second quarter net income was $11.8 million, compared to $8.3 million in the same quarter of the prior year and $17.3 million in the previous quarter. Diluted earnings per share on a GAAP basis was $0.46 for the second quarter of 2003, compared to $0.33 for the second quarter of 2002 and $0.66 per share ($0.46 per share excluding a contract settlement gain)(1) for the previous quarter.

"In many ways, Benchmark's second quarter performance exceeded our expectations. We improved our operational metrics, continued to realign our resources and leveraged our capacities effectively. Our second quarter new program bookings, quite impressively, were one of our highest ever," commented Cary T. Fu, President of Benchmark Electronics, Inc.

  Second Quarter 2003 Financial Highlights
  --  Cash balance at June 30, 2003 of $336 million.
  --  Cash generated from operations was $29 million in the second quarter
      of 2003.
  --  Accounts receivables decreased by $3 million during the quarter to
      $192 million.
  --  Calculated days sales outstanding remained consistent at 39 days for
      the quarter.
  --  Inventories decreased by $11 million during the quarter to
      $186 million.
  --  Inventory turns increased to 8.9 from 8.4 in the previous quarter.

  Third Quarter 2003 Guidance
  --  Revenue in the third quarter of 2003 is expected to be between
      $445 million and $460 million.
  --  We expect gross margins to be relatively flat in the third quarter of
      2003 compared with the second quarter of 2003.
  --  Earnings per share for the third quarter of 2003 are expected to be
      $0.44 to $0.48 per diluted share.
  --  The tax rate for the remainder of 2003 is expected to be approximately
      33%.

  (1)  As previously disclosed, during the first quarter of 2003 we settled
       and released various claims arising out of customer manufacturing
       agreements and recorded a non-cash gain totaling $8.1 million
       ($5.5 million net of tax).  Diluted earnings per share excluding the
       impact of the contract settlement gain was $0.46 for the quarter
       ending March 31, 2003 calculated as follows:

          Diluted earnings for the quarter ended
           March 31, 2003                                      $18,149
          Contract settlement gain, net of tax                  (5,513)
          Diluted earnings excluding contract
           settlement gain                                     $12,636
          Diluted earnings per share excluding contract
           settlement gain                                       $0.46
          Weighted average shares outstanding for
           diluted earnings per share                           27,457


This news release contains certain forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "expect," "estimate," "anticipate," "predict," and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties and assumptions, including but not limited to industry and economic conditions, customer actions and the other factors discussed in Benchmark's Form 10-K for the year ended December 31, 2002 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.

A conference call hosted by Benchmark management will be held today at 10:00am CDT to discuss the financial results of the Company and its future outlook. This call will be broadcast via the Internet and may be accessed by logging on to our website at www.bench.com .

               Benchmark Electronics, Inc. and Subsidiaries

                    Consolidated Statements of Income
              (Amounts in Thousands, Except Per Share Data)
                               (UNAUDITED)

                          Three Months Ended         Six Months Ended
                               June 30,                   June 30,
                          2003          2002         2003          2002

  Net sales             $448,948       404,375      897,418       733,563
  Cost of sales          412,024       373,573      824,889       677,886

    Gross profit          36,924        30,802       72,529        55,677

  Selling, general
   and administrative
   expenses               16,442        16,122       32,914        30,298
  Contract settlement        ---           ---       (8,108)          ---
  Asset write-offs           ---         1,608          ---         1,608

    Operating income      20,482        13,072       47,723        23,771

  Other income (expense):
    Interest expense      (2,349)       (2,777)      (4,919)       (5,691)
    Other                   (148)        2,607          668         3,179
  Total other expense,
   net                    (2,497)         (170)      (4,251)       (2,512)

    Income before
     income taxes         17,985        12,902       43,472        21,259

  Income tax expense       6,233         4,644       14,389         7,653

    Net income           $11,752         8,258       29,083        13,606

    Numerator for basic
     earnings per share
     - net income        $11,752         8,258       29,083        13,606
    Interest expense
     on 6% convertible
     debt, net of tax        786           ---        1,610           ---
    Numerator for
     diluted earnings
     per share           $12,538         8,258       30,693        13,606

    Denominator for
     basic earnings
     per share -
     weighted average
     number of common
     shares outstanding
     during the period    24,644        23,654       24,577        21,719
    Incremental common
     shares attributable
     to exercise of
     outstanding
     dilutive options        786         1,037          868           866
    Incremental common
     shares attributable
     to conversion of 6%
     convertible debt      1,995           ---        1,995           ---
    Denominator for
     diluted earnings
     per share            27,425        24,691       27,440        22,585
  Earnings per share:
    Basic                  $0.48          0.35         1.18          0.63
    Diluted                 0.46          0.33         1.12          0.60


               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2003
                          (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
    Cash                                            $335,663
    Accounts receivable, net                         192,332
    Inventories, net                                 185,822
    Other current assets                              21,014
      Total current assets                           734,831

  Property, plant and equipment, net                  84,677
  Other assets, net                                    8,626
  Goodwill, net                                      116,743

    Total assets                                    $944,877

  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of other long-term debt     $25,420
    Accounts payable                                 222,308
    Other current liabilities                         63,665
      Total current liabilities                      311,393

  Convertible subordinated notes                      80,200
  Other long-term debt, excluding current
   installments                                        7,020
  Other long-term liabilities                          6,941

  Shareholders' equity                               539,323

    Total liabilities and shareholders' equity      $944,877

SOURCE: Benchmark Electronics, Inc.

CONTACT: Gayla J. Delly, Chief Financial Officer of Benchmark
Electronics, Inc., +1-979-849-6550

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