MIGDAL HAEMEK, ISRAEL - Camtek has announced its financial results for the first quarter ending March 31.

The Company reported revenues for the first quarter of $21.3 million, an increase of 47% over the first quarter of last year, and a slight increase sequentially from the $21.0 million reported in the fourth quarter of 2007.

Gross profit margin for the first quarter of 2008 improved to 44.5%, as compared to 41.5% for the first quarter of 2007, and 43.7% sequentially over the fourth quarter of 2007.

According to the company, operating income for the first quarter of 2008 was $114,000, and an operating income of $126,000 in the prior quarter.

The Company's profitability the first quarter of 2008 was partially offset by devaluation of the US dollar against the Israeli shekel, which the company reports increased its costs for that quarter in dollar terms. However, the company reportedly hedged its dollar/shekel exposure and subsequently reported increased financial income, compensating for the increased expenses due dollar devaluation.

Financial income in the quarter of $467,000, compared with $133,000 in the first quarter of 2007 and $66,000 in the prior quarter.

Net income for the first quarter of 2008 was $493,000, up 99.6% from $247,000 in the last quarter of 2007.

"We are satisfied with our first quarter results, especially with the increase in profitability and positive cash flow", commented Rafi Amit, CEO. "We maintained our revenues at similar level to that of the last two quarters in spite of the on-going macroeconomic situation and the weakness of the electronic industry. Our activity in the PCB sector has been stable."

Mr. Amit concluded, "We expect second quarter revenues at a similar level to that of the current quarter, between $20 and 22 million."