MIGDAL HAEMEK, Israel, August 7 /PRNewswire-FirstCall/ -- Camtek Ltd. , today announced record results for the second quarter ended June 30, 2006.

Revenues for the second quarter of 2006 were $27.9 million, 67% above $16.8 million in the second quarter of 2005, and up 12% sequentially from $24.9 million reported in the first quarter of 2006.

Gross profit margin for the second quarter of 2006 was 54.6%, compared to 49.7% for the second quarter of 2005, and 52.5% for the first quarter of 2006.

The Company reported second quarter net income of $5.2 million, or $0.17 per diluted share, compared to a net income of $1.5 million, or $0.05 per diluted share, in the second quarter of last year, and $4.4 million, or $0.16 per diluted share, in the first quarter of 2006.

Rafi Amit, Camtek's CEO, commented: "Camtek's operational and financial performance excelled this quarter. We continued building our strong position in the semiconductor manufacturing and packaging industry as our revenues from this industry reached $13 million and contributed 47% of our total revenues. We continue to see the same level of activity as last quarter in the PCB and HDI-S markets, which contributed $14.9 million to our revenues."

Mr. Amit continued, "In parallel to our activities of supporting our growth, we have been developing new capabilities for all our served markets. We will announce a few of these capabilities in the near future."

Mrs. Ronit Dulberg, Camtek's CFO, added, "We are very pleased to have achieved the targets we have set for ourselves in terms of revenues, margins and profitability, which are the highest quarterly results we have ever recorded . It is worth noting that while we have been investing significant resources in expanding the organization, we were still able to record a positive operating cash flow of $3.4 million since the beginning of the year."

Mr. Amit concluded, "Given our performance in the first half of the year, our current activity level and the signals we are receiving from our marketplaces, we feel comfortable with our previously updated guidance of $100-110 million revenues for the year. At this point we can estimate our third quarter revenues at the range of $26-30 million".

Camtek will hold a conference call today, Monday August 7, 2006 at 11:00 EDT (for other time zones see below). Rafi Amit, CEO, Ronit Dulberg, Chief Financial Officer, and Yuval Attias, Director of finance, will host the call and will be available to answer questions.

To participate, please call one of the following telephone numbers below. US: 1-866-860-9642 at 11 a.m. EDT UK: 0-800-917-5108 at 4 p.m. GMT Israel: 03-918-0600 at 6 p.m. Israel time International: +972-3-918-0600

The teleconference will be available for replay for 14 days on Camtek's website at http://www.camtek.co.il/, beginning 48 hours after the call.

About Camtek Ltd.

With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. This press release is available at http://www.camtek.co.il/.

This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.

CONTACT INFORMATION CAMTEK: IR/PR ISRAEL IR INTERNATIONAL Ronit Dulberg, CFO Financial Ehud Helft / Kenny Green Communication GK Investor Relations Tel: +972-4-604-8308 Tel: (US) 1-866-704-6710 Fax: +972-4-604-8300 Noam Yellin Mobile: kenny@gkir.com +972-54-905-0776 Tel: +972-3-6954333 ehud@gkir.comronitd@camtek.co.il Fax: +972-544-246720 CAMTEK LTD. Consolidated Balance Sheets (in thousands, except share data) June 30, December 31, 2006 2005 US dollars ASSETS CURRENT ASSETS Cash and cash equivalents 25,399 8,714 Marketable securities 2,994 2,101 Accounts receivable, net 34,095 26,412 Inventories 33,944 24,942 Due from affiliates 238 290 Other current assets 3,917 2,817 Total current assets 100,587 65,276 Fixed assets, net 10,362 9,963 Total assets 110,949 75,239 LIABILITIES CURRENT LIABILITIES Accounts payable -trade 17,239 8,678 Other current liabilities 10,988 8,721 Total current liabilities 28,227 17,399 Convertible loan 5,000 5,000 Accrued severance pay, net of amounts funded 222 222 Total liabilities 33,449 22,621 SHAREHOLDERS' EQUITY Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares, issued 28,095,516 in 2005 and 30,868,291 in 2006, outstanding 27,083,897 in 2005 and 29,856,672 in 2006 131 125 Additional paid-in capital 58,764 43,732 Deferred stock-based compensation - (221) Accumulated other comprehensive income (loss) Unrealized income (loss) on marketable securities 3 (2) Retained earnings 19,595 9,977 Treasury stock, at cost (1,011,619 shares in 2005 (993) (993) and 2006) 77,500 52,618 Total liabilities and shareholders' equity 110,949 75,239 CAMTEK LTD. Consolidated Statements of Operations (in thousands, except share data) Six Months Ended Three Months Ended Year Ended June 30 June 30 December 31 2006 2005 2006 2005 2005 Revenues 52,756 25,912 27,876 16,771 63,032 Cost of revenues 24,477 13,809 12,660 8,435 32,781 Gross Profit 28,279 12,103 15,216 8,336 30,251 Research and development 4,894 3,862 2,457 2,043 8,469 costs Selling, general and 13,523 8,819 7,314 4,844 18,760 administrative expenses Total operating expenses 18,417 12,681 9,771 6,887 27,229 Operating income (loss) 9,862 (578) 5,445 1,449 3,022 Financial and other income 26 (308) (80) 53 (320) (expenses), net Income (loss) before income 9,888 (886) 5,365 1,502 2,702 taxes Provision for income taxes 270 - 170 - - Net income (loss) 9,618 (886) 5,195 1,502 2,702 Net income (loss) per ordinary share: Basic 0.34 (0.03) 0.18 0.06 0.10 Diluted 0.33 (0.03) 0.17 0.05 0.10 Weighted average number of ordinary shares outstanding: Basic 28,270 27,203 29,173 27,205 27,253 Diluted 29,617 27,495 30,531 27,496 27,586

CONTACT: CAMTEK: Ronit Dulberg, CFO, Tel: +972-4-604-8308, Fax:
+972-4-604-8300, Mobile: +972-54-905-0776, ronitd@camtek.co.il; IR/PR ISRAEL,
Financial Communication, Noam Yellin, Tel: +972-3-6954333, Fax:
+972-544-246720; IR INTERNATIONAL, Ehud Helft / Kenny Green, GK Investor
Relations, Tel: (US) 1-866-704-6710, kenny@gkir.com, ehud@gkir.com