103730--2/27/2007--VISHAY_INTERTECHNOLOGY

related topics

{acquisition, growth, future}

{customer, product, revenue}

{condition, economic, financial}

{operation, international, foreign}

{cost, regulation, environmental}

{product, market, service}

{cost, operation, labor}

{stock, price, share}

{personnel, key, retain}

{property, intellectual, protect}

Factors relating to our business generally Our business is cyclical and the periods of decline in demand that we have experienced in the past may resume and may become more pronounced. We have incurred and may continue to incur restructuring costs and associated asset write-downs. In the past we have grown through successful integration of acquired businesses, but this may not continue. Our debt levels have increased, which could adversely affect the perception in the financial markets of our financial condition. To remain successful, we must continue to innovate. Our ability to compete effectively with other companies depends, in part, on our ability to maintain the proprietary nature of our technology. We have begun to invest in start-ups but our investments may not prove successful Future acquisitions could require us to issue additional indebtedness or equity. Our reluctance to issue substantial additional shares in order not to dilute the interests of our existing shareholders could impede growth Our results are sensitive to raw material availability, quality, and cost. Our backlog is subject to customer cancellation. We face intense competition in our business, and we market our products to an increasingly concentrated group of customers. We may not have adequate facilities to satisfy future increases in demand for our products. Future changes in our environmental liability and compliance obligations may harm our ability to operate or increase costs. Our products may experience a reduction in product classification levels under various military specifications. Our future success is substantially dependent on our ability to attract and retain highly qualified technical, managerial, marketing, finance, and administrative personnel. Factors relating to Vishay s operations outside the United States We obtain substantial benefits by operating in Israel, but these benefits may not continue. We attempt to improve profitability by operating in countries in which labor costs are low, but the shift of operations to these regions may entail considerable expense. We are subject to the risks of political, economic, and military instability in countries outside the United States in which we operate. General Economic and Business Factors

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103730--2/27/2007--VISHAY_INTERTECHNOLOGY_INC