Exhibit 99.1

                         [LETTERHEAD OF Kulicke & Soffa]

NEWS for Immediate Release

                 Kulicke & Soffa To Terminate Substrate Venture

Willow Grove, PA--August 27, 2002--Kulicke & Soffa Industries Inc. today
announced that it will close its substrate operations in Milpitas, California
due to the extended downturn in the semiconductor industry.

K&S acquired the "X-LAM" substrate technology in January 1999, opened a
development facility in Milpitas later that year, and renamed it `K&S
Substrates.' The technology enables production of next generation, high
performance BGA substrates and multi-layer boards at line widths of 32 microns
and below by applying thin, very high density multi-layer laminates to a core.
The technology, while still in development, has yielded promising results with
good customer interest due to its potential to address the semiconductor
industry roadmap well into the future.

C. Scott Kulicke, chairman and chief executive officer, stated, "While our
substrate operation was intended to be a key component in the Company's strategy
of supplying assembly solutions in the advanced interconnect space, it is highly
capital intensive and requires on-going cash infusions."

He continued, "In today's volatile semiconductor industry, the most pressing
issue is assuring the long term financial strength of K&S. Therefore, the
fiscally prudent course of action is to terminate the venture at this time."

The pre-tax charge for the closure is estimated at approximately $17.0 million
and will be incurred in the fourth fiscal quarter ending September 30, 2002.

The decision to close the operation is the most recent step in the Company's
actions to cut costs and reduce cash usage. It had previously announced other
measures aimed at returning the Company to profitability, including a functional
reorganization, reductions in force, and manufacturing moves to Singapore and
China.

Kulicke & Soffa (Nasdaq: KLIC) is the world's leading supplier of semiconductor
interconnect equipment, materials and technology. Chip and wire solutions
combine wafer dicing and wire bonding equipment with saw blades, die collets,
wire and capillaries. Flip chip solutions include wafer bumping technology. Chip
scale and wafer level packaging solutions include Ultra CSP(R) technology. Test
interconnect solutions include standard and vertical probe cards, ATE interface
assemblies and ATE boards for wafer testing, and test sockets and contactors for
all types of packages. Kulicke & Soffa's web site address is www.kns.com.



Caution Concerning Forward Looking Statements
This press release contains forward-looking statements which are found in
various places throughout the press release. While these forward-looking
statements represent our judgments and future expectations concerning the
development of our business, a number of risks, uncertainties and other
important factors could cause actual developments and results to differ
materially from our expectations. These factors include, but are not limited to,
those listed or discussed in Kulicke & Soffa Industries' 2001 Annual Report on
Form 10-K and: the risk that anticipated orders may not materialize or that
orders received may be postponed or canceled, generally without charges; the
risk that anticipated cost savings will not be achieved; the volatility in the
demand for semiconductors and our products and services; acts of terrorism and
violence; overall global economic conditions; risks, such as changes in trade
regulations, currency fluctuations, political instability and war, associated
with a substantial foreign customer and supplier base and substantial foreign
manufacturing operations; potential instability in foreign capital markets; the
risk of failure to successfully manage our diverse operations; and other key
factors that could adversely affect our businesses and financial performance
contained in past and future filings and reports, including those with the SEC.
Kulicke & Soffa Industries is under no obligation to (and expressly disclaims
any such obligations to) update or alter its forward-looking statements whether
as a result of new information, future events or otherwise.

Company Contact:
Investors & Financial Media:                                    All Other Media:
Nancy R. Kyle                                                   Henri Van Parys
215-784-6436                                                    215-784-6818
nkyle@kns.com                                                   parys@kns.com

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