March 3-4, 2011March 3-4, 2011

Investor PresentationInvestor PresentationSidoti & CompanySidoti & Company

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03-03-11

....Forward Looking Statements and Regulation FDForward Looking Statements and Regulation FD

Certain matters discussed in this presentation, including Certain matters discussed in this presentation, including statements concerning expectations of Cohu’s future operating statements concerning expectations of Cohu’s future operating performance, are forward-looking statements that are subject to performance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ risks and uncertainties that could cause actual results to differ materially from those projected or forecasted. Such risks and materially from those projected or forecasted. Such risks and uncertainties include, but are not limited to; our ability to convert uncertainties include, but are not limited to; our ability to convert new products under development into production on a timely new products under development into production on a timely basis, support product development and meet customer delivery basis, support product development and meet customer delivery and acceptance requirements for next generation equipment; and acceptance requirements for next generation equipment; inventory, goodwill, and other intangible asset write-downs, and inventory, goodwill, and other intangible asset write-downs, and customer orders may be cancelled or delayed. These and other customer orders may be cancelled or delayed. These and other risks are discussed more fully in Cohu’s filings with the Securities risks are discussed more fully in Cohu’s filings with the Securities and Exchange Commission, including the most recently filed Form and Exchange Commission, including the most recently filed Form 10-K and Form 10-Q. Cohu assumes no obligation to update the 10-K and Form 10-Q. Cohu assumes no obligation to update the information in this presentation.information in this presentation.

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Cohu Investment SummaryCohu Investment Summary Market leaderMarket leader in semiconductor test handling in semiconductor test handling

equipment equipment

Rasco acquisitionRasco acquisition in December 2008 extends in December 2008 extends market leadership and expands TAMmarket leadership and expands TAM

Key proprietary technologyKey proprietary technology for temperature for temperature control: improves IC yield and ASPscontrol: improves IC yield and ASPs

Operating leverage:Operating leverage: provides opportunity for provides opportunity for significant growth in profits during upcyclesignificant growth in profits during upcycle

Financial strength:Financial strength: strong, debt-free balance strong, debt-free balance sheetsheet

New products:New products: 3 new handlers to fuel market 3 new handlers to fuel market share growthshare growth

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03-03-11

SemiconductorSemiconductor Manufacturing ProcessManufacturing Process

WaferFab

The “Front-End”

Ship Inspection MarkTestAssembly

Cohu handlers, burn-in thermal subsystems and Cohu handlers, burn-in thermal subsystems and equipment are an essential part of the IC manufacturing equipment are an essential part of the IC manufacturing process - used with ATE to cost-effectively test ICs for process - used with ATE to cost-effectively test ICs for

quality and functionalityquality and functionality

Final Manufacturing Processes

The “Back-End”

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Cohu’s Semiconductor Equipment GroupCohu’s Semiconductor Equipment Group

#1 in Logic Pick & Place Test Handlers

#2 in Gravity-feed Test Handlers

COHUCOHUGlobal Leader in IC Test Handling

A Cohu Company

MATRiXMATRiX PyramidPyramid SO1000SO1000 SO3000SO3000X32 Tri-temp Next-Gen

Thermal HandlerX4 Tri-temp Test on Strip

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Rasco acquisition added gravity-feed and strip handlersRasco acquisition added gravity-feed and strip handlers Extends leadership in the test handler marketExtends leadership in the test handler market Complementary products with no overlapComplementary products with no overlap

Gravity-Feed is well-suited for handling small IC packages – critical Gravity-Feed is well-suited for handling small IC packages – critical to miniaturization of CE productsto miniaturization of CE products

Our products address 62% of the marketOur products address 62% of the market Rasco sales and orders at record levels in 2010Rasco sales and orders at record levels in 2010

Expanded TAMExpanded TAM

Semiconductor Test Handler MarketSemiconductor Test Handler Market

Source: VLSI Research, Inc. and Company estimates

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Leading TechnologiesLeading Technologies

PRODUCTIVITYPRODUCTIVITY

X32 (X4 Chuck) 125°C Thermal Testing

120.0

121.0

122.0

123.0

124.0

125.0

126.0

127.0

128.0

129.0

130.0

00.00 04.32 08.64 12.96 17.28 21.60 25.92 30.24 34.56 38.88Time (s)

Tem

per

atu

re (

°C)

Site B1

Site A1

Site D1

Site C1

Site B2

Site A2

Site D2

Site C2

Site B3

Site A3

Site D3

Site C3

Site B4

Site A4

Site D4

Site C4

Site A5

Site B5

Site C5

Site D5

Site A6

Site B6

Site C6

Site D6

Site A7

Site B7

Site C7

Site D7

Site A8

Site B8

Site C8

Site D8

- Tmin. = 123.4 °C- Tmax. = 127.9 °C- Temp. Range = 4.5°C- Sites A5 and A6 were not functioning, no temperature reading.80

90

100

110

120

130

140

0 2 4 6 8 10 12 14 16 18 20

Time (sec)

Tem

p (

C)

Temp Rise

6.0°C

4.3°C

3.9°C

3.4°C

2.6°C

Thermal response at 125W

FLEXIBILITYFLEXIBILITY

Industry-leading Parallelism & ThroughputIndustry-leading Parallelism & Throughput

Lowers cost-of-testLowers cost-of-test

Vision AlignmentVision Alignment

Enables accurate testing of small form Enables accurate testing of small form factor IC packages – a fast growing marketfactor IC packages – a fast growing market

Thermal ManagementThermal Management

Proprietary thermal technology increases Proprietary thermal technology increases accuracy and yieldsaccuracy and yields

Chamber-less Tri-TemperatureChamber-less Tri-Temperature

Allows on-line maintenance at temperature, Allows on-line maintenance at temperature, reducing downtimereducing downtime

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Proprietary Thermal Technology Proprietary Thermal Technology Solves a Growing Problem in IC TestSolves a Growing Problem in IC Test

Delta Design is the industry leader in high-power/DUT thermal Delta Design is the industry leader in high-power/DUT thermal managementmanagement

Enabling capability that optimizes speed grading, increasingly Enabling capability that optimizes speed grading, increasingly important for GPUsimportant for GPUs

Latest technology incorporated in next-gen Pyramid thermal handlerLatest technology incorporated in next-gen Pyramid thermal handler

2.79

2.82

2.85

2.88

2.91

2.94

2.97

3.00

3.03

3.06

3.09Fmax Uncertainty for MPUs

Freq. vs. Temp2% / 10oC Typical

2oC Tj errorFmax Uncertainty

10oC Tj errorFmax Uncertainty

Ma

x.

Fre

q. -

GH

z

Tj Setpoint – deg. C

Speed = $

Core i5 2.8 Ghz $189

Core i5 3.3 Ghz $249 (+32%)

Source: Computeredge.com

(February 28, 2011)

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Market Share LeadershipMarket Share LeadershipIC Test HandlersIC Test Handlers

Logic Pick & PlaceLogic Pick & Place HandlersHandlers Gravity Feed HandlersGravity Feed Handlers

Source: 2008 VLSI Research, Inc. and Company estimates

COHU (Rasco) 23%

COHU 24%

(Primarily Logic)

COHU (Delta Design)

48% COHU (Delta Design)

48%

#1 Position#1 Position

#1 Position#1 Position #2 Position#2 Position

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Wide Customer BaseWide Customer Base

Realizing cross-selling opportunities, resulting in market share gainsRealizing cross-selling opportunities, resulting in market share gains

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03-03-11

Broad Product PortfolioBroad Product Portfolio New industry-leading systems in each product lineNew industry-leading systems in each product line

Fin

al

an

d S

yste

m L

eve

l IC

Te

st

Delta Design - Thermal Pick & Place Handlers

Delta Design - High Speed Pick & Place Handlers

Rasco - Gravity-feed & Strip Handlers

Next Generation

Next Generation

Next GenerationF

ina

l a

nd

Syste

m L

eve

l IC

Te

st

Delta Design - Thermal Pick & Place Handlers

Delta Design - High Speed Pick & Place Handlers

Rasco - Gravity-feed & Strip Handlers

Next Generation

Next Generation

Next Generation

MATRiX

Pyramid

InDevelopment

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Largest global sales and service network in the industry...Largest global sales and service network in the industry...

24/7 Global Customer Support24/7 Global Customer Support

POWAY, CADelta Headquarters

Long Island, NY

MALAYSIA- Kuala Lumpur- Penang- Malacca- Kulim

Burlington, VTTAIWAN- Taipei- Kaohsiung- Hsinchu

SOUTH KOREA- Seoul

JAPAN

CHINA- Tianjin- Shanghai- Suzhou- Chengdu

THAILAND- Bangkok

Hillsboro, ORBoise, ID

Austin, TX

COSTA RICA

Houston, TX

Chandler, AZ

UNITED KINGDOM

MALTA

Tyngsborough, MA

Dallas, TX

SINGAPOREDelta-Rasco

Asia Headquarters

KOLBERMOOR, DERasco Headquarters

San Jose, CA

INDONESIA

Depth and Breadth is a Competitive AdvantageDepth and Breadth is a Competitive Advantage

Tooling Design/Mfg

PHILIPPINES- Manila- Baguio- Cavite- Laguna

- Tokyo

- Batam

Financial UpdateFinancial Update

Poway, California Headquarters

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Strong Q4 ResultsStrong Q4 Results

Q4 2010 HighlightsQ4 2010 Highlights

Sales grew 13% sequentially and 86% YoY to $96.9M, Sales grew 13% sequentially and 86% YoY to $96.9M, a Cohu recorda Cohu record

Non GAAP EPS $0.48 vs. $0.41 in Q3 and $0.11 in Non GAAP EPS $0.48 vs. $0.41 in Q3 and $0.11 in Q4 2009Q4 2009

Orders $75.8M, down 16% from Q3Orders $75.8M, down 16% from Q3

Semi-equipment orders declined 9% sequentially to Semi-equipment orders declined 9% sequentially to $67.1M$67.1M

Backlog of $99.6MBacklog of $99.6M

$0.06 cash dividend (quarterly dividend since 1977)$0.06 cash dividend (quarterly dividend since 1977)

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03-03-11

Semi/Semi Equipment UpdateSemi/Semi Equipment Update

Source: SEMI 2011

Backend semi equipment have increased for the last two monthsBackend semi equipment have increased for the last two months

““2010 will likely be the strongest year ever for the semiconductor 2010 will likely be the strongest year ever for the semiconductor equipment industry, which will be a nice rebound from the worst equipment industry, which will be a nice rebound from the worst year ever, growth will continue through 2012 as companies move year ever, growth will continue through 2012 as companies move from technology buys to capacity purchases.” from technology buys to capacity purchases.” (Klaus Rinnen, Gartner)(Klaus Rinnen, Gartner)

0.450.550.650.750.850.951.051.151.251.351.451.55

2006 2007 2008 2009 2010 2011

OrdersBook to Bill

$20

$70

$120

$170

$220

$270

$320

$370

$420

$470

Millions

2006 2007 2008 2009 2010 2011

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03-03-11

Multiple Business DriversMultiple Business Drivers

Source: Company reports

Broad-based demand for our handlersBroad-based demand for our handlers Production ramp of new thermal handler – PyramidProduction ramp of new thermal handler – Pyramid Capacity additions as IC unit volume increasesCapacity additions as IC unit volume increases Market share gains and sales synergies of expanded product lineMarket share gains and sales synergies of expanded product line

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10

Total Sales - Actual Semi-Equip Sales - Actual

$M

Q4

Gu

ida

nc

eSalesMillions

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03-03-11

Q1’11 Non GAAP GuidanceQ1’11 Non GAAP Guidance

Non GAAP excludes stock compensation expense and amortization of purchased intangibles

Gross margin subject to volume and product mixGross margin subject to volume and product mix

Opex lower mainly as a result of variable selling expense on Opex lower mainly as a result of variable selling expense on lower revenuelower revenue

Q4'10 Q1'11Results Guidance

Quarterly Revenue ($M) $96.9 $85 to $90

Gross Margin 34.9% Consistent with Q4

Operating Expenses 21.5% Slightly Lower

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03-03-11

Strong Balance SheetStrong Balance Sheet ($M, except per share amounts)($M, except per share amounts)

Cash increased $13.3M in 2010 despite volume-driven working capital Cash increased $13.3M in 2010 despite volume-driven working capital requirementsrequirements

~10%+ sequential increase in Q4 shipments results in lower inventory~10%+ sequential increase in Q4 shipments results in lower inventory No bank debtNo bank debt

Cash and Investments $84.7 $89.9 $91.3 $98.2

Accounts Receivable $44.9 $55.1 $67.2 $66.8

Inventory $59.4 $61.9 $66.0 $63.2

Key Metrics

Cash per share $3.59 $3.79 $3.82 $4.09

DSO 62 61 67 60

Inventory Days 114 118 107 91

Mar ’10 Jun ’10 Sep ’10 Dec’10

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Rasco acquisition expanded TAM and has been Rasco acquisition expanded TAM and has been highly successfulhighly successful

Well positioned for market share growth from:Well positioned for market share growth from:

New, industry-leading pick & place handlersNew, industry-leading pick & place handlers

Ramp of Pyramid, next-gen thermal handlerRamp of Pyramid, next-gen thermal handler

Gravity-feed handlers optimized for small IC testing – Gravity-feed handlers optimized for small IC testing – new product in 2011new product in 2011

Significant cross selling opportunitiesSignificant cross selling opportunities

Strong balance sheet to enable future growth Strong balance sheet to enable future growth opportunitiesopportunities

SummarySummary

March 3-4, 2011March 3-4, 2011

Investor PresentationInvestor PresentationSidoti & CompanySidoti & Company