INFICON Announces First Quarter 2006 Results; Increase of 23% in Net Income Demonstrates Continued Improvements in Operational Efficiency

Revenues for the first quarter of 2006 totaled $48.7 millioncompared to $50.0 million for the first quarter of 2005, representinga 2.7% decrease. On a constant Dollar basis, revenues for the quarterincreased 2.3%. Excluding the sales attributable to Electro DynamicsCrystal Corp. (EDC), whose assets INFICON acquired on February 28,2006, revenues increased 1.2% on a constant dollar basis. Net incomeincreased 23% to $4.8 million, or $2.02 per diluted share, compared to$3.9 million, or $1.67 per diluted share, in the first quarter of2005. Cash provided by operating activities was $4.7 million comparedto cash used of $0.7 million in the same quarter last year.

Lukas Winkler, president and chief executive officer, commented,"Our first quarter results again demonstrate the progress we have madein enhancing our company's business processes and streamlining ourstructure to improve our operating leverage. Our strategy of providingtechnology solutions that enable our customers to achieve significantproductivity improvements also contributed to our bottom-line results.Although our overall level of sales for the first quarter of 2006 wasessentially flat compared to the same period last year, the momentumin our business environment accelerated significantly as the quarterprogressed.

"In the semiconductor and vacuum coating markets, demand increasedfrom both end-users and original equipment makers. Sales of INFICONadvanced process control software to a U.S. chipmaker also contributedto our solid performance, although these positive trends were temperedby continued weakness in the equipment market for optical data storageand flat panel displays. A highlight of the quarter was ouracquisition of EDC, a premier manufacturer and our major supplier ofquartz-based products, which are essential for thin film monitoringand control instruments. This provides a significant competitiveadvantage through supply chain vertical integration which is improvingboth revenue and profits. The integration of EDC is proceeding quicklyand smoothly.

"In the general vacuum processes market, we experienced one of ourbest quarters ever with broad-based sales of gauges, leak detectorsand gas analyzers. Our robust performance reflects improved economictrends in Europe and Asia and well-received new products by ourprivate label partners.

"Reflecting the normal seasonal trends, sales in the refrigerationand air conditioning market began slowly, but activity graduallypicked up during the quarter. However, revenue did not reach therecord first quarter of the prior year. Late last year, wesuccessfully introduced the Protec P3000 Helium Leak Detector -powered by Wise Technology(TM). It has been quickly adopted by ourcustomers due to innovative performance enhancements resulting fromour 'design for high performance and lower cost' program.

"Sales to environmental health and security customers declinedfrom last year's first quarter. While we saw a decrease in activity inthe U.S., we are experiencing very positive international penetration.In addition, we see continued diversification in geography, customertype and order mix - an important goal for this product line.

"In sum, our first-quarter performance and business outlookreinforce our confidence that we have the right strategy for INFICONto achieve profitable growth. We remain committed to our goals ofincreasing the company's operational efficiency, achieving growth -organically and through small acquisitions - and gaining market shareby introducing innovative products that offer our customerssignificant cost advantages. Using this approach, we expect INFICONwill deliver revenue growth of 5-10% and an operating margin ofapproximately 12% for the full year 2006."

The INFICON Board of Directors has proposed a par value repaymentof CHF 5.00 per share and a dividend of CHF 5.00 per share for thebusiness year 2005 to be voted on at the Annual General Meeting ofShareholders on May 4, 2006. If approved, the ex-dividend date will beMay 9, 2006 and the par value repayment is planned for July 31, 2006.

Conference Call and Visual Presentation: INFICON will hold anearnings teleconference, including presentation slides that will bewebcast, on April 26, 2006 at 4:00 p.m. Central European SummerTime/10:00 a.m. Eastern Daylight Time. To access the teleconference,please dial +1.706.634.1033. The audio and visual webcast will beavailable in the Investor Relations section of the INFICON website.Please visit www.inficon.com where our presentation will be available20 minutes prior to the teleconference and webcast.

A replay of the teleconference will be available from 7:00 p.m.CET/1:00 p.m. ET on April 26 through 5:59 a.m. May 3 CET/11:59 p.m. ETon May 2. To access the replay, please dial +1.706.645.9291,conference ID #7694727. The webcast will be archived on the INFICONwebsite.

Email Alerts: The latest financial information from INFICON canautomatically be sent via Email Alert; sign up is available in theInvestor Relations section of the INFICON website.

ABOUT INFICON

INFICON is a leading developer, manufacturer and supplier ofinnovative instrumentation, critical sensor technologies, and advancedprocess control software for the semiconductor and vacuum-coatingindustries and other industrial applications. These analysis,measurement and control products are vital to original equipmentmanufacturers (OEMs) and end-users in the complex manufacturing ofsemiconductors, flat panel displays, magnetic and optical storagemedia and precision optics. INFICON also provides essentialinstrumentation for gas leak detection to the airconditioning/refrigeration industries and toxic chemical analysis forthe emergency response and security markets. Headquartered inSyracuse, New York, INFICON has world-class manufacturing facilitiesin the United States and Europe and worldwide offices in the U.S.,China, France, Germany, Japan, Korea, Liechtenstein, Singapore,Switzerland, Taiwan, and the United Kingdom. INFICON is a publiclylisted company, registered with the Swiss Stock Exchange (SWX). Formore information about INFICON and its products, please visitwww.inficon.com.

This press release and oral statements or other written statementsmade, or to be made, by us contain forward-looking statements that donot relate solely to historical or current facts. Theseforward-looking statements address, among other things, our strategicobjectives, trends in vacuum technology and in the industries thatemploy vacuum instrumentation, such as the semiconductor and relatedindustries and the anticipated effects of these trends on ourbusiness. These forward-looking statements are based on the currentplans and expectations of our management and are subject to a numberof uncertainties and risks that could significantly affect our currentplans and expectations, as well as future results of operations andfinancial condition. Some of these risks and uncertainties arediscussed in the company's Annual Report for fiscal 2005. As aconsequence, our current and anticipated plans and our futureprospects, results of operations and financial condition may differfrom those expressed in any forward-looking statements made by or onbehalf of our company. We undertake no obligation to publicly updateor revise any forward-looking statements, whether as a result of newinformation, future events or otherwise.
INFICON Holding AG
Consolidated Statements of Income
(U.S. Dollars in thousands, except per share amounts)
(unaudited)


Three Months Ended
March 31,
2006 2005
---- ----

Net sales $48,667 $ 50,038
Cost of sales 25,584 26,610
-------- ---------
Gross profit 23,083 23,428

Research and development 4,331 5,116
Selling, general and administrative 12,618 13,071
-------- ---------
Income from operations 6,134 5,241

Interest (income) , net (218) (74)

Other (income) , net (97) (72)
-------- ---------
Income before income taxes 6,449 5,387

Provision for income taxes 1,652 1,487
-------- ---------
Net income 4,797 3,900
======== =========

Earnings per share
Diluted $ 2.02 $ 1.67
Basic $ 2.05 $ 1.68

Shares used to compute net income
per share
Diluted 2,371 2,330
Basic 2,336 2,319

INFICON Holding AG
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
(unaudited)

March 31, December 31,
2006 2005
---- ----
Assets

Current assets:
Cash and short term investments $ 70,127 $ 72,268
Trade accounts receivable, net 27,827 26,981
Inventories, net 21,622 18,810
Other current assets 6,187 5,678
--------- -------------
Total current assets 125,763 123,737

Property plant and equipment, net 21,215 20,308
Goodwill and Intangibles, net 5,360 791
Other non current assets 35,661 36,495
--------- -------------
Total non current assets 62,236 57,594
--------- -------------
Total assets $187,999 $ 181,331
========= =============

Liabilities and stockholders' equity

Current liabilities:
Trade accounts payable $ 6,695 $ 6,353
Short term borrowings 1,730 2,761
Other current liabilities 16,734 17,201
--------- -------------
Total current liabilities 25,159 26,315

Non current liabilities 9,095 7,893
--------- -------------
Total liabilities 34,254 34,208

Stockholders' equity 153,745 147,123
--------- -------------
Total liabilities and stockholders' equity $187,999 $ 181,331
========= =============