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

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales revenue of $455 million for the quarter ended September 30, 2003, compared to $428 million for the same quarter in the prior year and $449 million for the second quarter of 2003. Third quarter net income was $12.9 million, compared to $9.6 million for the same quarter in the prior year and $11.8 million for the second quarter of 2003. Diluted earnings per share on a GAAP basis was $0.48 for the third quarter of 2003, compared to $0.38 for the third quarter of 2002 and $0.46 for the second quarter of 2003.

"Our operating results for the third quarter were once again solid. We expect to see continued strong results in the fourth quarter driven by the ramp of new programs by several customers and the increased demand in some technology markets while we continue to diversify our customer base," commented Cary T. Fu, President of Benchmark Electronics, Inc.

   Third Quarter 2003 Financial Highlights
   -- Cash balance at September 30, 2003 of $329 million.
   -- Convertible notes totaling $80.2 million converted into 1,994,987
      shares of common stock.
   -- Total debt outstanding down to $26.5 million at September 30, 2003.
   -- Accounts receivable increased by $11 million during the quarter to
      $203 million.
   -- Calculated days sales outstanding increased to 40 days for the
      quarter.
   -- Inventories increased by $23 million during the quarter to
      $209 million.
   -- Inventory turns decreased to 8.0 from 8.9 in the previous quarter.

   Fourth Quarter 2003 Guidance
   -- Revenue in the fourth quarter of 2003 is expected to be between
      $460 million and $475 million.
   -- Earnings per share for the fourth quarter of 2003 are expected to be
      $0.47 to $0.51 per diluted share.
   -- During the fourth quarter of 2003, we will be closing our Scotland
      facility further aligning our operations with the current business
      environment.
      -- Costs related to closing this facility are estimated at
         $1.4 million.  In addition, certain tax benefits may be realized by
         Benchmark as a result of this closure.
      -- These closure related costs and benefits have not been included in
         the fourth quarter guidance above.

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 10:00 am 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      Nine Months Ended
                                 September 30,           September 30,

                                2003       2002        2003        2002

  Net sales                 $ 455,352    428,278   1,352,770   1,161,841
  Cost of sales               418,382    395,767   1,243,271   1,073,653

      Gross profit             36,970     32,511     109,499      88,188

  Selling, general and
   administrative expenses     16,330     17,268      49,244      47,566
  Contract settlement             ---        ---      (8,108)        ---
  Asset write-offs                ---        ---         ---       1,608

      Operating income         20,640     15,243      68,363      39,014

  Other income (expense):
    Interest expense           (1,976)    (2,886)     (6,895)     (8,577)
    Other                         967      2,364       1,635       5,543
  Total other expense, net     (1,009)      (522)     (5,260)     (3,034)

      Income before income
       taxes                   19,631     14,721      63,103      35,980

  Income tax expense            6,687      5,138      21,076      12,791

      Net income            $  12,944      9,583      42,027      23,189


  Earnings per share:
      Basic                 $    0.51       0.40        1.69        1.03
      Diluted                    0.48       0.38        1.63        0.99

  Weighted average number
   of shares outstanding:
      Basic                    25,383     24,246      24,849      22,565
      Diluted                  26,749     24,924      25,843      23,378


               Benchmark Electronics, Inc. and Subsidiaries

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


  Assets

  Current assets:
      Cash                                         $ 328,787
      Accounts receivable, net                       203,027
      Inventories, net                               208,635
      Other current assets                            21,111
      Total current assets                           761,560

  Property, plant and equipment, net                  81,855
  Other assets, net                                    7,950
  Goodwill, net                                      114,504

          Total assets                             $ 965,869

  Liabilities and Shareholders' Equity

  Current liabilities:
      Current installments of other long-term
       debt                                        $  26,516
      Accounts payable                               225,922
      Other current liabilities                       66,957
          Total current liabilities                  319,395

  Other long-term debt, excluding current
   installments                                           16
  Other long-term liabilities                          6,784
  Shareholders' equity                               639,674

          Total liabilities and shareholders'
           equity                                  $ 965,869

SOURCE: Benchmark Electronics, Inc.

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

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