BUFFALO GROVE, Illinois, July 29 /PRNewswire/ --

- Net Revenue of US$35.5 million; Net Income of US$0.30 per Diluted Common Share

Eagle Test Systems, Inc. (Nasdaq: EGLT), a provider of automated test equipment solutions for high-performance analog, mixed-signal and radio frequency (RF) semiconductors, announced financial results for its third fiscal quarter ended June 30, 2008.

Operating Results

Net revenue was US$35.5 million for the third fiscal quarter ended June 30, 2008, an increase of US$15.6 million, or 78.6%, compared to net revenue of US$19.9 million for the same period in the prior fiscal year. Sequentially, net revenue increased US$2.3 million or 7.0%. Gross margin for the third fiscal quarter was 65.6% of net revenue, compared to 62.3% of net revenue for the same period in the prior fiscal year, and 62.0% for the March 2008 quarter. Operating income for the third fiscal quarter was US$10.0 million, compared to US$1.8 million in operating income for the same period in the prior fiscal year, and US$8.0 million for the March 2008 quarter.

Net income for the third fiscal quarter was US$6.8 million or US$0.30 per fully diluted common share, compared to net income of US$2.0 million or US$0.09 per fully diluted common share for the same period in the prior fiscal year, and net income of US$6.0 million or US$0.26 per fully diluted common share for the March 2008 quarter.

Net revenue was US$99.6 million for the nine months ended June 30, 2008, compared to net revenue of US$65.2 million for the same period in the prior fiscal year. Net income was US$18.1 million, an increase of US$10.4 million over net income of US$7.7 million in the comparable period in the prior fiscal year. The Company reported income per fully diluted common share of US$0.79 for the nine months ended June 30, 2008, compared to US$0.33 for the same period in the prior fiscal year.

"I am very pleased to see the continued strength in the market segments we serve," stated Len Foxman - Eagle CEO. "This quarter's results demonstrate the power of Eagle's operating model and the success we are capable of achieving as we continue to remain focused on profitable growth."

Outlook

The Company estimates net revenue will be between US$31.0 and US$35.0 million in the fourth fiscal quarter ending September 30, 2008. The Company estimates earnings per share will be between US$0.19 and US$0.26 based on an estimated 23,200,000 fully diluted common shares.

Earnings Conference Call

Eagle Test Systems will host its earnings call today at 6:00 p.m. Eastern Time/ 5:00 p.m. Central Time for analysts, stockholders, investors and the public.

Participants can join for the voice portion of the call by dialing +1-866-362-5158 (domestic calls) or +1-617-597-5397 (international calls) starting at 5:45 p.m. Eastern time/ 4:45 p.m. Central time and enter the passcode 22959095; you will be asked for your name and firm's name. The live conference call will also be available via web cast and accessible along with our earnings release the day of the call through the Investor Relations section of our website at http://www.eagletest.com.

The conference call will be available for replay from approximately 1 hour after completion of the conference call until August 12, 2008. To hear a replay of the call, please dial +1-888-286-8010 (domestic calls) or +1-617-801-6888 (international calls) and enter the passcode 46380451.

About Eagle Test Systems, Inc.

Eagle Test designs, manufactures, sells and services high performance automated test equipment for the semiconductor industry. The company's products are used to test analog, mixed-signal and radio frequency (RF) semiconductors that are used in products such as digital cameras, MP3 players, automotive electronics, cellular telephones, computers and peripherals. The company was founded in 1976 and has offices located throughout the world in Asia, North America and Europe, with corporate headquarters in Buffalo Grove, Illinois. For more information, please visit http://www.eagletest.com.

Safe Harbor

Certain statements contained in the press release regarding matters that are not historical facts, including statements regarding our projections for revenue, earnings per share and weighted average diluted common shares for the fourth fiscal quarter ending September 30, 2008 and statements regarding winning new customers, penetrating existing customers with new products with parallel test capabilities, and our business focus in the future are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). These forward-looking statements involve important factors that could cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Such important factors involve risks and uncertainties, including, but not limited to, the risk associated with the highly cyclical nature of the semiconductor market; unanticipated challenges in assessing business conditions and the overall market; the lack of visibility with regard to future business conditions for the Company and the rapid nature of changes in industry business conditions; the risk of a loss or reduction of orders from one or more customers among which our business is concentrated; the difficulty in obtaining new customers because of the high switching cost; competition and pricing pressures; the decision by customers to cancel or defer orders that previously had been accepted; delays or shortages in an adequate supply of raw materials; insufficient or excess inventory; our ability to develop new and enhanced products; the ability to manage our growth; the ability to attract and retain key employees; prolonged disruption in the operations of our single manufacturing facility; economic, political and other risks associated with international sales and operations; risks related to our intellectual property; risks related to our need to achieve and maintain effective internal controls over financial reporting; beliefs regarding the liquidity and quality of our investments in auction rate securities and other factors that are detailed from time to time in reports filed by Eagle Test Systems, Inc. with the Securities and Exchange Commission, including risks and uncertainties discussed under "Risk Factors" in our Form 10-K, filed with the Securities and Exchange Commission on December 6, 2007. We undertake no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information or future events, after the date they were made.

Company Contact: Stephen J. Hawrysz Chief Financial Officer Eagle Test Systems, Inc. +1-847-327-1033 Financial Tables to Follow

(All amounts in U.S. dollars, unless otherwise noted) Eagle Test Systems, Inc Financial Results (UNAUDITED) (all dollars in 000's except share and per share data) Three Months ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 Net Revenue $35,459 $19,858 $99,593 $65,202 COGS 12,185 7,490 36,718 25,787 Gross margin 23,274 12,368 62,875 39,415 Margin % 65.6% 62.3% 63.1% 60.5% SG&A 10,112 8,212 28,618 24,294 R&D 3,150 2,353 9,352 6,715 Total operating expense 13,262 10,565 37,970 31,009 Operating income 10,012 1,803 24,905 8,406 % of Revenue 28.2% 9.1% 25.0% 12.9% Interest expense 4 94 12 345 Other (income) expense (1) (927) (1,091) (3,146) (3,567) Income before taxes 10,935 2,800 28,039 11,628 Tax expense 4,114 792 9,898 3,915 Net income 6,821 2,008 18,141 7,713 19.2% 10.1% 18.2% 11.8% Earnings per common share Basic $0.30 $0.09 $0.79 $0.34 Fully diluted $0.30 $0.09 $0.79 $0.33 Shares Basic 22,974,177 22,957,154 22,974,177 22,895,597 Fully diluted 23,071,585 23,170,193 23,096,584 23,123,810 FOOTNOTES: (1) Other (income) expense primarily consists of interest income earned on cash and marketable securities. June 30, September 30, Balance sheet Data (Unaudited) 2008 2007 Cash & investments $84,654 $112,517 Accounts receivables 24,599 18,238 Inventories 36,798 22,233 Current assets 152,903 161,255 Long-term investments 28,609 - Total assets $196,856 $172,570 Accounts payable $6,005 $6,079 Deferred revenue 10,326 6,441 Current liabilities 26,276 19,222 Long-term liabilities 469 1,458 Total liabilities & stockholders equity $196,856 $172,570 End of Table

Web site: http://www.eagletest.com

Stephen J. Hawrysz, Chief Financial Officer of Eagle Test Systems, Inc., +1-847-327-1033