News Releases

Benchmark Electronics Reports Sales and Earnings for Second Quarter 2005

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales revenue of $561 million for the quarter ended June 30, 2005, compared to $491 million for the same quarter last year. Second quarter net income was $18.7 million, or $0.44 per diluted share. In the comparable period last year, net income was $17.6 million, or $0.42 per diluted share.

"Our second quarter results reflect revenue growth of 14% driven by the significant level of new program production," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc. "We are proud of the excellent results our teams delivered, driven by our intense focus on customer satisfaction. We expect strong growth and opportunities in the second half of 2005."

  Second Quarter 2005 Financial Highlights
   *  Operating margin for the second quarter was 4.1%, impacted by a
      combination of product pricing and mix as well as realignment costs of
      approximately $0.6 million.  When these realignment costs are
      excluded, on a non-GAAP basis the operating margin was 4.3%.
   *  Return on invested capital of 13.1%.
   *  Cash and short-term investments balance at June 30, 2005 of
      $287 million.
   *  No debt outstanding as of June 30, 2005.
   *  Accounts receivable increased by $43 million during the quarter to
      $310 million; calculated days sales outstanding were 50 days.
   *  Inventories increased by $17 million during the quarter to
      $313 million; inventory turns were 6.7 times.
   *  Working capital increased associated with our organic growth and the
      high level of demand from our customers in the last month of the

  Third Quarter 2005 Guidance
   *  Revenue in the third quarter of 2005 is expected to be between
      $555 million and $580 million.
   *  Earnings per share for the third quarter of 2005 are expected to be
      $0.44 to $0.48 per diluted share.

  Non-GAAP Financial Measures

This press release includes financial measures that exclude certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance and underlying trends and to help investors compare our results with our previous guidance.

Non-GAAP information is not necessarily comparable to other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.

Forward-Looking Statements

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, 2004 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, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight countries. Benchmark's Common Shares trade 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 (Central time) 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 .

               Benchmark Electronics, Inc. and Subsidiaries

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

                             Three Months Ended         Six Months Ended
                                   June 30,                  June 30,

                              2005         2004         2005         2004

  Net sales                $560,817     $491,392   $1,070,399     $972,358
  Cost of sales             522,071      453,043      994,168      896,852

    Gross profit             38,746       38,349       76,231       75,506

  Selling, general and
   expenses                  15,478       15,330       30,690       31,051

    Operating income         23,268       23,019       45,541       44,455

  Other income (expense):
    Interest expense            (85)        (394)        (152)      (1,159)
    Other                     1,956        1,321        2,626        1,754
  Total other income
   (expense), net             1,871          927        2,474          595

      Income before income
       taxes                 25,139       23,946       48,015       45,050

  Income tax expense          6,441        6,390       12,388       12,299

      Net income            $18,698      $17,556      $35,627      $32,751

  Denominator for basic
   earnings per share --
   weighted average
   number of common
   shares outstanding
   during the period         41,707       41,047       41,667       41,001
  Incremental common
   shares attributable
   to exercise of
   outstanding dilutive
   options                      956        1,121        1,043        1,325
  Denominator for
   diluted earnings per
   share                     42,663       42,168       42,710       42,326

  Earnings per share:
    Basic                     $0.45        $0.43        $0.86        $0.80
    Diluted                   $0.44        $0.42        $0.83        $0.77

               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2005
                          (Amounts in Thousands)


  Current assets:
    Cash and cash-equivalents                              $      70,118
    Short-term investments                                       217,275
    Accounts receivable, net                                     310,238
    Inventories, net                                             312,833
    Other current assets                                          31,970
      Total current assets                                       942,434

  Property, plant and equipment, net                              80,215
  Other assets, net                                                6,485
  Goodwill, net                                                  112,975

      Total assets                                         $   1,142,109

  Liabilities and Shareholders' Equity

  Current liabilities:
    Accounts payable                                       $     265,645
    Other current liabilities                                     74,213
      Total current liabilities                                  339,858

  Other long-term liabilities                                      9,084
  Shareholders' equity                                           793,167

      Total liabilities and shareholders' equity           $   1,142,109

SOURCE: Benchmark Electronics, Inc.

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

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