News Releases

Benchmark Electronics Reports Sales and Earnings for Third Quarter 2005

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales of $561 million for the quarter ended September 30, 2005, compared to $505 million for the same quarter last year. Third quarter net income was $20.3 million, or $0.47 per diluted share. In the comparable period last year, net income was $18.0 million, or $0.43 per diluted share.

"Our third quarter results are a clear indication that our strategy is working as we delivered double digit growth in sales and net income," stated Benchmark's President and CEO Cary T. Fu. "Our continued focus and execution on meeting our customers' needs around the world have provided for strong growth, profitability and increased shareholder value."

"I would like to thank our teams for their performance during the disruption caused by the Hurricane Rita evacuation that occurred during the last ten days of the third quarter. Our team's flexibility and dedication during this historical event in the Angleton/Houston area was nothing short of remarkable."

  Third Quarter 2005 Financial Highlights
   *  Operating margin for the third quarter was 4.4%.
   *  Cash flows provided by operating activities for the third quarter was
      $45 million.
   *  Return on invested capital of 12.7%.
   *  Cash and short-term investments balance at September 30, 2005 of
      $321 million.
   *  No debt outstanding.
   *  Accounts receivable decreased by $8 million during the quarter to
      $302 million; calculated days sales outstanding were 48 days.
   *  Inventories increased by $5 million during the quarter to
      $318 million; inventory turns were 6.6 times.

  Fourth Quarter 2005 Guidance
   *  Revenue in the fourth quarter of 2005 is expected to be between
      $585 million and $615 million.
   *  Earnings per share for the fourth quarter of 2005 are expected to be
      $0.49 to $0.54 per diluted share.

  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 Benchmark 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       Nine Months Ended
                                   September 30,            September 30,

                                 2005        2004         2005        2004

  Net sales                   $ 561,452  $  504,750   $1,631,851 $1,477,108
  Cost of sales                 521,148     466,232    1,515,316  1,363,084

      Gross profit               40,304      38,518      116,535    114,024

  Selling, general and
   administrative expenses       15,617      14,553       46,307     45,604

      Income from operations     24,687      23,965       70,228     68,420

  Other income (expense):
    Interest expense                (86)       (392)        (238)    (1,551)
    Other                         2,062         849        4,688      2,603
  Total other income, net         1,976         457        4,450      1,052

      Income before
       income taxes              26,663      24,422       74,678     69,472

  Income tax expense              6,356       6,389       18,744     18,688

      Net income               $ 20,307   $  18,033    $  55,934   $ 50,784

  Denominator for basic earnings
   per share - weighted average
   number of common shares
   outstanding during the
   period                        41,824      41,123        41,720   41,042
  Incremental common shares
   attributable to
   exercise of outstanding
   dilutive options                 946       1,190         1,031    1,345
  Denominator for diluted
   earnings per share            42,770      42,313        42,751   42,387

  Earnings per share:
      Basic                    $   0.49   $    0.44    $     1.34 $   1.24
      Diluted                  $   0.47   $    0.43    $     1.31 $   1.20

               Benchmark Electronics, Inc. and Subsidiaries

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


  Current assets:
      Cash and cash-equivalents                           $    125,756
      Short-term investments                                   195,480
      Accounts receivable, net                                 302,254
      Inventories, net                                         317,568
      Other current assets                                      36,342
          Total current assets                                 977,400

  Property, plant and equipment, net                            87,897
  Other assets, net                                              6,487
  Goodwill, net                                                112,990

          Total assets                                    $  1,184,774

  Liabilities and Shareholders' Equity

  Current liabilities:
      Accounts payable                                    $    283,115
      Other current liabilities                                 75,070
          Total current liabilities                            358,185

  Other long-term liabilities                                    9,458
  Shareholders' equity                                         817,131

          Total liabilities and shareholders' equity      $  1,184,774

SOURCE: Benchmark Electronics, Inc.

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

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