Good day and welcome to the Camtek Limited Q2 2008 Conference Call. For your information, today's conference is being recorded. At this time, I would like to turn the conference over to your host today, Mr. Kenny Green of GK Investor Relations. Please go ahead, sir.

Thank you, and good day, to all of you. I'd like to welcome all of you to Camtek's Second Quarter 2008 Results Conference Call and thank Camtek's management for hosting this call. With us on the line today are Mr. Rafi Amit, Camtek's CEO, and Mrs. Ronit Dulberg, the Company's CFO. Ronit will start the call by giving an overview of Camtek's performance in the quarter and summarize the financial results. She will also discuss recent developments within the Company and in the market and discuss the outlook. We will then open the call to the question-and-answer session. Before we start, I'd like to remind everybody that this call contains projections and other forward-looking statements regarding future events and the future performance of the Company. These statements are only predictions and may change as time passes. Camtek does not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timing and development of new products and their adoption by the market, increased competition in the industry and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC. With that, I'd like to open the call to Ronit. Ronit, go ahead, please.

Thank you, Kenny. Hello, everyone, and welcome to our second quarter 2008 results conference call. On behalf of Camtek management, I would like to thank every one of you for your continued interest in our business and for joining us today. We are proud of our ability to moderately exceed our previously announced guidance, considering the backdrop of the global economic uncertainty affecting the industry in which we operate. Our revenues grew 48% over the last year and were 6.4% higher than that of last quarter with much of that sequential and year-over-year growth in our semiconductor market. However, we face globally increased cost due to a number of factors, the majority of which were beyond our control. That particularly affected our cost of goods sold, lowering our gross margin. In past quarters, the cost of raw materials and transportation grew significantly. Additionally, the 5% or 6% drop in the dollar against the Shekel in the second quarter over the first quarter increased our Shekel-related costs. Where there is a global economic uncertainty, we will endeavor to minimize our cost of goods sold and operating expenses by continuing the implementation of tight control over our expenses. In addition, we have accelerated the process of moving production to China. Like all players in the microelectronics industry, we are susceptible to its inherent cyclicality. However, despite the current downtrend and as was our strategy in the past during such periods, we continue to maintain our focus on customer satisfaction and among others, by providing solutions to our customer needs, developing new features, and continuing our intensive R&D effort. Based on the information available to us, we maintained and probably further strengthened our leadership position in our sales markets. We are facing increasing sizes of almost all inputs across the board, from metal…

Thank you. (Operator instructions). We have our first question from Mahesh Sanganeria from RBC Capital Markets. Please go ahead. Mahesh Sanganeria – RBC Capital Markets: Thank you very much. Rafi, can you talk a little bit about the semiconductor business, you saw a nice business there, how that's going to track and how is the competitive landscape in terms of your market there? Are there any incremental gains?

(inaudible) As I mentioned in the last time or from time-to-time, that most of our penetration inside the products in the last few years, we sold them based on what we call technology-driven, meaning we invested a lot of efforts in customer side to build and adapt our system to their needs. So such projects took a lot of time, and when it qualified by customer, and roughly such a process can take six months, sometimes a year, and any increasing of capacity from the customer always will continue using the same qualified systems. So since we focus on very high-end technology from one year or two years or three years ago, now some of these technologies start to increase. And then we can see today the fruit of this investment. So I would say that a major part of our income comes from repeat order which is a result of this investment. Mahesh Sanganeria – RBC Capital Markets: Okay. On the legal expense side, can you give us an idea of what is going to be the magnitude of the legal expense?

Hi, Mahesh. It's very difficult to predict. As you know, we are trying to predict it for about a year and not very successfully. But with use of getting into a trial which is a situation right now will increase our expenses for at least the next two quarters. And right now, we feel that this will be a few hundreds of dollars. Mahesh Sanganeria – RBC Capital Markets: Okay, hundred thousand?

Yes, hundred thousand. Mahesh Sanganeria – RBC Capital Markets: Okay. And on the gross margin side, with your 5% increase in prices, when does that go in effect and how should we look at the gross margin going forward? Is it – should we for now assume it's going to stay at the June level?

No, the June level is very low, and I think, with the shekel exchange rate going up again and with also with the fact that we have also one-time expenses, right now, we estimate that it will be higher, more close to what we used to have, maybe a little below the first quarter, but for sure higher than the second quarter of 2008. Mahesh Sanganeria – RBC Capital Markets: Okay, thank you very much.

Our next question comes from Sergey Vastchenok from Oppenheimer. Please go ahead. Sergey Vastchenok – Oppenheimer & Co.: Hi, guys. Congratulations on a good execution in such a challenging environment. I would like to ask regarding the PCB business. Do you see some changes in competitive landscape? What do you expect going forward? Do you see an improving seasonality in Q4, or it could be pressured by a decline in demand in the end markets?

We take in our under consideration that the PCB market right now suffer from some softening based on the global economy because from our experience, I would say this industry in real-time response to any change of the global economy, unlike the semiconductor that has more buffer between the production and the end-user, and basically we don't have such buffer. So this is why we reduce our guidance for the next quarter, because we do not know exactly what will be the strength of the global economy, so we try to be a little bit conservative and to estimate a little bit lower. So by the way, when we talk about the guidance, we still believe that the semiconductor will remain at least the same and most of the decline will come from the PCB based on the assumption. We cannot base on leads because, most of the case, the PCB, the response time from order to delivery could be two, three, four weeks. So we are right now in the beginning of the quarter or the middle of the quarter, so it could change any day. But based on the global economy, we cannot take such risks, so this is why we estimate a little bit slowdown of the PCB. Sergey Vastchenok – Oppenheimer & Co.: And what about the HDI? What was the impact of this business this quarter and how it's going forward?

HDI in the last year is up very flat. We don't see any really demand for system from this industry. It slows in the last year, it's very flat, the demand for AOI. From time-to-time we get some requirement, but definitely this industry right now is looking under softening. As I mentioned before, also the PCB – that although it was in the first and second quarter still okay, I would say a little bit, we cannot estimate exactly. But on the other hand, we feel very comfortable with our position, so it means that we maintain our market share. It's not something that we lose market share to other vendors; it's just the overall environment we believe will change the demand. Sergey Vastchenok – Oppenheimer & Co.: Okay. The last question regarding (inaudible) the stock has been trading for a while below $1. I think it's in the coming days, you are supposed to get a notice from NASDAQ. It's close to 30 trading days, so you are trading below $1. What I think – what are – any things you are planning to do to cope with this reverse split or any other action to improve the situation?

Okay, well, what we believe is based on this price, the Company and the Board feel it's a very attractive price, so we decided to make a buyback. We allocated up to US$2 million to make this buyback. I don't know right now how that affects the market stock, but let's see what's going on. We tried to do our best in developing the business and monitoring our expenses to bring more profit and actually, hopefully, the market will respond based on the results. Sergey Vastchenok – Oppenheimer & Co.: Okay, thank you. Good luck.

Thanks.

(Operator instructions). We have our next question from Eric Best [ph] from Best Holdings [ph]. Please go ahead. Eric Best – Best Holdings: Yes, hi, I have a question regarding the buyback. When do you expect to start the buyback process? Do you need to get an approval from the Israeli courts, or because you have profits, you can start it almost immediately? Thank you.

Technically, we can start it immediately. We didn't finalize the exact date. We don't have any limitation right now to start the buyback. Eric Best – Best Holdings: Wonderful. Thank you very much.

(Operator instructions). As there are no further questions, I would now like to turn the call back over to Mr. Rafi Amit for any additional or closing remarks.

Okay. As we announced today, Mrs. Mira Rosenzsweig will join Camtek's management on September 2008. She will replace Mrs. Ronit Dulberg as the Company's CFO following a transition period. I would like to thank Ronit for her significant contribution over the past years. We wish her the best of luck in the future. At this opportunity, I would like to welcome Mira Rosenzsweig on board. To the rest of you again, I would like to thank you for your continued interest in our business. We look forward to speaking with you again over the next few quarters. Thank you and good-bye.

That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.