Richard Grubb – CFO, EVP and Treasurer Bill Clancy – SVP and Corporate Controller Gerald Paul – President, CEO and COO Felix Zandman – Executive Chairman and CTO

Jim Suva – Citigroup Ingrid Aja – Merrill Lynch Steve Smigie – Raymond James Kevin Kessel – Bear, Stearns & Co. Matt Sheerin – Thomas Weisel Partners Shawn Harrison – Longbow Research Andrew Wang – CIBC World Markets

Good morning. My name is Crystal and I will be your conference operator today. At this time, I would like to welcome everyone to the Vishay's first quarter 2008 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator instructions) At this time, I would like to turn the conference over to Mr. Richard Grubb, Vishay's Chief Financial Officer. Please go ahead, sir.

Good morning and thank you for joining us for today's conference call. As usual, Dr. Gerald Paul, our CEO; and Dr. Felix Zandman, Vishay's Executive Chairman and Chief Technical Officer, are also on the phone. But before I start, Bill Clancy, Vishay's Senior Vice President and Corporate Controller, will read our customary opening statement.

You should be aware that in today's conference call, we will be making certain forward-looking statements that discuss future events and performance. These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For a discussion of factors that could cause results to differ, please see today's press release and Vishay's Form 10-K and Form 10-Q filings with the SEC.

Thanks, Bill. Normally, as is normal, I will make some summary comments and Dr. Paul will add a more detailed evaluation of the results of this first quarter of 2008. And finally Dr. Zandman will update us on R&D and acquisition activities. As announced this morning in our press release, Vishay reported $0.19 operating earnings per share as compared to $0.26 for last year's first quarter and $0.19 for the fourth quarter of 2007. The operational results for the first quarter 2008 exclude any losses incurred by the automobile business unit acquired as part of the IRPCS business. As you know, this business has been sold to a private equity firm, resulting in a net loss of $42.1 million. This amount of $42.1 million includes a net loss for the first quarter of $6.5 million, so the sale loss is somewhere around $35 million as we estimated in our 8-K we filed in early March. The reported GAAP earnings per share include restructuring and severance costs of $22.4 million. These items and the related tax consequences had a negative $0.10 per share effect against operating earnings. The overall GAAP loss was $25 million or $0.13 per share for the first quarter of 2008. In addition, the continuing weakening of the U.S. dollar amounted to $10 million pretax effect for the quarter. I want to elaborate on this effect of the dollar and its weakness it has to us at Vishay. If I apply the effects of this $10 million back as if it didn't happen, the 23.5% gross profits that we present operational basis would have be 24.2%, and more importantly, the $0.19 of operating earnings per share that we report would have been $0.23 per share. So it has a significant effect on the earnings of Vishay for this…

Thank you, Dick. Well, as you understood, the first quarter with adjusted earnings per share of $0.19 generated a good free cash flow and you also understood that the historical weakness of the U.S. dollar against practically all relevant currencies has threatened earnings in a major way. On the other hand, Vishay continues to operate in a reasonably good economic environment, and based on an ongoing strong book-to-bill ratio, we are confident also for the second quarter. Well, let's have a look first of all at the economic environment. No doubt that the first quarter showed a slight economic decline versus the prior year, but the overall situation remained healthy. Mobile phones and customer and consumer in total remained weak, which is partially seasonal. This continued strength of the industrial markets, automotive in Europe, and aviation, military and space, and we have seen in the quarter encouraging signs from notebooks. There has been a quite strong POS performance of American and European distributors. Asian distributors are seasonally down versus prior quarter. We have seen distribution having reduced its inventory by 3% overall and the strong POS helped to improve the inventory turns of our distributors on average. They went from 3.8 to 4.1 on a worldwide basis, in the Americas from 3.0 to 3.2, in Europe a major jump from 3.5 to 4.4, Asia down from 4.9 to 4.5, but this is to a large degree seasonal. On the other hand, book-to-bill of distribution the first quarter was below 1. In general, there are short lead times on the market, and as I said before, despite ongoing concerns for the macro economy, the second quarter looks solid. Vishay's first quarter as we indicated were in line with our guidance of sales between $720 million to $740 million. We actually achieved…

Good morning. While our operational earnings of $0.19 per share were in line with last quarter, which was also $0.19 per share, and in line with our budget, the disposition of the (inaudible) units called ASBU, part of the IR acquisition, produced a loss based on GAAP accounting. The sale of this unit was due to the fact that while initially we thought we could have earnings from ASBU, it turned out that IR projections given to us were highly exaggerated and misleading. We continue to explore large and small acquisitions with an accent on specialty products in both actives and passives components areas. We are continually introducing new products. For example, the introduction of Trench Schottky diodes, a new Vishay diode technology, was very successful with sales already running at a $30 million rate annually. A new miniature tantalum capacitor, another product, called MAP with advanced ESR and CV characteristics recently introduced generates already a sales rate of $10 million. These are but two examples. Many new products are being introduced with the results that our share of new products as part of total sales continues to increase. All in all, Vishay continues successfully to implement its strategy of acquisitions strategy to have a very broad line of active and passive components to implement the concept of one-stop shop and focus on new products and new technologies. Thank you. Dick?

Now, we will go for questions.

(Operator instructions) Your first question comes from the line of Jim Suva. Jim Suva – Citigroup: Thank you very much. Quick question on the legal litigation for the patents, is that just one-time for the March quarter or does some of it flow into the June?

No, it is a singularity, clearly a singularity. Jim Suva – Citigroup: Okay. As such then, if we were to assume the world continues as it is today, would that then kind of take your SG&A closer to the $115 million run rate as opposed to the $119 million run rate?

You are exactly right. Jim Suva – Citigroup: Okay, great. And then, last follow up question, on the IR you mentioned about the highly exaggerated projections and misleading projections. Do you have any type of legal or financial recourse there or how should we, or is it just a thing in the past and we should just move on?

No, we think so. We think so. We think that we have a legal recourse. Jim Suva – Citigroup: And can you walk us through a timeline or expectations?

No. We can't talk about it at this point. It is a possibility of course because we got the information which was misleading as we said, exaggerated, and that is being considered now. Jim Suva – Citigroup: Great. Thank you very much, gentlemen.

Your next question comes from the line of Ingrid Aja. Ingrid Aja – Merrill Lynch: Can you talk a little bit about how your order rate linearity at distribution OEM customers were during the quarter? Did you see any falloff in the back half of March?

You mean of our distributors or to our distributors? Ingrid Aja – Merrill Lynch: To your distributors.

It was strong as I said before, it is – if I remember right, 1.04 or 1.05. Let me just look it up. It was 1.05 book-to-bill, so it was strong. Ingrid Aja – Merrill Lynch: Throughout the quarter?

Yes. And by the way, book-to-bill altogether is good performance continued in April. Ingrid Aja – Merrill Lynch: Okay, great. And then I was wondering are you seeing your industrial customers in Europe finding it anymore difficult to compete due to the strong euro, have you seen anything at all?

This is what you would anticipate, but we have seen in Europe, and this is really Germany very much, we have not seen a decline. It really depends on the products, I would say. I would have expected the same thing, but we don't see it. Ingrid Aja – Merrill Lynch: Okay, great. And then just one last thing, in terms of your auto sales, are you seeing those grow in line with your customers or faster due to the increasing electronic content, and if so by how much?

Well, our share with automotive over the years is approximately the same in our portfolio, so it goes together. Ingrid Aja – Merrill Lynch: Approximately the same. Okay, great. Thank you very much.

Thank you.

Your next question cops from the line of Steve Smigie. Steve Smigie – Raymond James: Great, thanks. It seems like pricing was not a huge issue throughout the course of the year.

No. Steve Smigie – Raymond James: But, so I would guess units may have been the issue. What does it take to really get some more significant unit growth in 2008?

It is first of all, the whole thing is impacted by economy, no question about it. What we can do is to generate new products and we do that and secondly to reduce costs for competitiveness and also this is happening. So, this is basically what we do but like with for all our competitors, the economic environment is of course the first priority in that. Steve Smigie – Raymond James: Okay. And you guys are taking some actions to reduce costs in terms of closing down some facilities. Can you talk a little more about how the timing of that works, what's the benefit?

Yes, these restructuring efforts basically happen in Europe. As you see one in Brazil and the other is in Europe. They all will happen in the course of this year and the payback of these measures are around two years. So basically, the benefits will flow to the capacitors and also to the measurements group. Some to passives and measurement group. Steve Smigie – Raymond James: And when would I expect to see impacts then on gross margin?

We will have finalized these projects by year-end for sure in the closing steps. So you would see in the second half, first indications of how to say that first start of the benefit and then full implementation by year-end. Steve Smigie – Raymond James: And the last question then, just how does it work with – obviously, it is difficult to close facilities in Europe. How do you manage that process?

This is not first time, we have to say. So we are experienced. As a matter of fact, all this has been announced and we have social plans negotiated. So we are in a peaceful situation with the labor union, which is not always easy in Europe, but I can assure you these closings will happen smoothly. Steve Smigie – Raymond James: Okay. Thank you.

Your next question comes from the line of Kevin Kessel. Kevin Kessel – Bear, Stearns & Co.: Morning.

Morning. Kevin Kessel – Bear, Stearns & Co.: So my question on SG&A – I heard on the call that you mentioned $5 million of the $10 million increase was the result of foreign currency and you also mentioned legal fees.

No, $10 million was the negative impact on the quarter, on the results of the quarter, and we had $10 million negative impact of exchanges versus prior quarter, $5 million on the operating margin and $5 million below the line. Kevin Kessel – Bear, Stearns & Co.: Below the line, so none on the gross margin. It was just on the SG&A.

No, $5 million was down to operating margin which is partially gross margin and partially SG&A and another $5 million was below the line. Kevin Kessel – Bear, Stearns & Co.: Okay. So if we just isolate SG&A on a quarter-to-quarter basis and look at that change, it was almost $10 million, a little bit closer to $9.5 million. Legal fees were a part of that, which appear to be a one-time event.

Well, the SG&A is up by $6 million from quarter four to quarter one, from $113 million to $119 million and as I said before, I expect it to be back to $115 million given the same exchange rates, of course, in the second quarter. Kevin Kessel – Bear, Stearns & Co.: Okay. I will have to maybe take that offline and figure what happened.

It is $6 million up, a portion of it comes directly from the exchange rate vis-a-vis prior quarter and then you have the singularity the legal cases. Kevin Kessel – Bear, Stearns & Co.: Did you quantify those legal cases or can you?

Out of this increase, we have about $2 million to $3 million from the exchange rate, and the remainder comes clearly from the legal expense. Kevin Kessel – Bear, Stearns & Co.: Okay. Now, turning to IRF and the synergies there, you mentioned that so far it is still on a run rate of $240 million.

Yes. Kevin Kessel – Bear, Stearns & Co.: With a 7% operating margin or incremental margin.

Yes. Kevin Kessel – Bear, Stearns & Co.: So then when I look at what you guys have continued to state as the goal, which I believe is 18% incremental margin.

That is true. Kevin Kessel – Bear, Stearns & Co.: That was 18 months after close. So, initially, it was supposed to be for this quarter which is 12 months and now it is supposed to be I assume for third quarter, third calendar quarter, which would be 18 months out to reach or to target that $18 million run rate?

As I said already, last time, we expect delays. The move out of manufacturing took substantially longer than we anticipated at the beginning. We are in the process to move out packaging already, and we will start to move out in a major way next quarter also the fabs. And when all of this is implemented and we expect this to, in the first quarter next year, then we will see in steps again from now to then, improved results. Kevin Kessel – Bear, Stearns & Co.: Okay. So you are saying that you will move out a lot of it, the packaging next quarter. So that would be –

The packaging is already underway and the packaging we will finalize in the course of the third quarter. Then we have the fabs, the primary, which we just start in a major way next quarter and this will take us until first quarter next year. Kevin Kessel – Bear, Stearns & Co.: And then how many more quarters do you think before you actually could approach the target and once you have all that done?

Well, the cost reduction which we anticipate will be there in the second quarter, at the latest depends on which starting problems we will have in manufacturing, the latest in the third quarter next year. And then we expect to be in the range of what we said. Kevin Kessel – Bear, Stearns & Co.: Okay. Because as I understand that timeline and I am thinking in terms of actual dollars, I don't know if there's think way to quantify, but in the past you had said there were some transition service agreements which I think have wound down?

We still had in the quarter $600,000. Kevin Kessel – Bear, Stearns & Co.: Okay. So there was $600,000. But what is the possibility in terms of dollar savings from manufacturing. Is it $5 million a quarter that can be saved for manufacturing? Is it less, is it more?

I would say it is close to that, it is close to that. So basically, we have (inaudible) $60 million sales about and the idea is to come approximately 10 points up, approximately 10 points up, that's exactly the number. And I would reconfirm the $5 million for sure. As I said before, we also expect going forward somewhat more sales. This is supposed to be our [ph] our anticipation. Kevin Kessel – Bear, Stearns & Co.: Okay. Just the last thing – I might have missed it. I heard distributor and OEM book-to-bills. Don't you typically also give an EMS book-to-bill?

No, we don't. We don't have it, at least not by heart. So this is part of the OEM number in our case. Kevin Kessel – Bear, Stearns & Co.: So it has been folded into that?

Yes. Kevin Kessel – Bear, Stearns & Co.: Okay. Thank you.

Thank you.

Your next question comes from the line of Matt Sheerin. Matt Sheerin – Thomas Weisel Partners: Yes, thank you. Just one numbers question that I didn't get and that's your sales breakdown by geography. I am not sure you gave that.

We didn't. I don't have it here at hand. Okay. We have it, just a second. We have it. In the first quarter, out of the $733 million, we sold to Asia $268 million, to the Americas $170 million, and to Europe $295 million, should give the total. Matt Sheerin – Thomas Weisel Partners: Okay. And were they all generally seasonal or was one worse or better than the others?

We found Europe quite strong, principally speaking, and otherwise we would call it seasonal. It was foreseen. So, as a matter of fact, we were right within our guidance, so the first quarter saleswise – not exchange ratewise but saleswise – was no surprise for us. Matt Sheerin – Thomas Weisel Partners: Okay. Some of your distribution customers have been talking about seeing weakness in Europe, particularly on bookings with negative book-to-bill and that's of course in local currency. Why do you think there's a disconnect between what they're seeing and what you are seeing?

Well, we saw Europe – first of all, Europe decreased its inventory quite substantially, which is principally a good sign, principally as a good basis going forward. Otherwise we see Europe economy wise, I cannot close the problem. I cannot close the contradiction that's on it. I think the distributors we deal with, they're not talking about super year 2008, but absolutely solid. I am talking to these people. Matt Sheerin – Thomas Weisel Partners: Okay. And then in terms of your profitability prospects going forward, you have talked about gross margin being up a little bit in June on the revenue range that you gave, and then also SG&A down. So it looks like you should be back to the high-single digit operating margin. Is it achievable in this kind of low growth environment to get to double-digit operating margin in the next few quarters?

Well, as we said, if the economic environment prevails, then we will show better gross margins throughout the year. This is what we predict. But for quarter two, we guide this way. That means we have a backlog and we have certain programs, so, yes, we will also provide on the projection with the gross margin for the first quarter. Matt Sheerin – Thomas Weisel Partners: Okay. And then my last question, just a couple of quarters out, there's been some talk from other suppliers' customers in advance of the Olympics in Beijing, in August, are going to be asking for a little bit of an inventory buffer building. I am just wondering whether you are seeing that from customers or do you expect any disruptions at all in August when is obviously a busy time for you because of the Olympics?

Well, concerning potential shutdowns of facilities, I talked to our local people there. It doesn't appear that Vishay's plans around Beijing would be concerned. Concerning freight forwarders, of cause I cannot – I don't know exactly, but we do not expect major disruption in any respect. Matt Sheerin – Thomas Weisel Partners: Okay. Thank you.

Your next question comes from the line of Shawn Harrison. Shawn Harrison – Longbow Research: Hi, good morning. Just a below the line item, what should we expect other income to rebound to in the second quarter given that there was an FX effect this quarter?

Well, I don't know whether I can project what the FX effect is going be on the second quarter, but if it hadn't been as much as it was this quarter, it would have been a positive $0.5 million. Shawn Harrison – Longbow Research: So if foreign exchange is stable quarter-to-quarter, it would be a $4.5 million contributor?

It would be a positive, yes, that's correct. Shawn Harrison – Longbow Research: Secondly, just looking at other cost cutting measures – I think it was touched on last quarter, maybe going back to the operating expense line and looking for cost reductions there, any update on those plans?

Well, as a matter of fact, we expect to go back after this spike, may I say, to more normal levels in operating margin. So what we can achieve this year, we really offset the inflation. We have increased inflation around the world. Wage increases were higher in recent years and also traveling costs, hospitality, what have you, all these costs are quite dramatically inflated. And what Vishay can do in the next quarter is to offset the influences of this increased inflation vis-a-vis prior year. So we expect on an apples-to-apples basis, that means also the same exchange rates of course, despite this inflation to be at the level of prior year. Shawn Harrison – Longbow Research: Okay. I am guessing maybe just kind of the levers behind that, is that through lay offs involved or other, what costs?

Yes, it is all kinds of things, it's layoffs, it's belt tightening. In SG&A, you cannot get around some belt tightening measures also. Shawn Harrison – Longbow Research: Okay. Do you expect any other, either on the fixed cost or kind of the variable cost side?

Yes, as I said, we have revitalized in a way manufacturing restructuring and there are three plants which I named which we decided to close in the course of the year and move the production into existing facilities. Of course, there is a cost reduction involved, which doesn't kick in immediately but mostly after the full implementation and we go in steps from now to the end of the year. So looking at the first quarter next year, we will see also, and this is mostly manufacturing of course, partially fixed, partially variable cost reduction. Shawn Harrison – Longbow Research: Okay. Getting back to Siliconix, it was mentioned that there was a sequential mix improvement made quarter-to-quarter. Was that tied to less desktop PC business and is that mix improvement sustainable?

Yes, it is. What we expect – I think I guided for the second quarter at the same sales and same gross margin levels as we had now in the first quarter. But for the second half and I said this also three months ago, we expect Siliconix to improve further, or was it at constant economic environment of course, to continue further mostly based on cost reduction on the variable side. Shawn Harrison – Longbow Research: Okay. Are you winning market share within the handset market with other players right now?

Siliconix did in the last two years gain market share, no question about it. Shawn Harrison – Longbow Research: Okay. That would –

But you know, we had the specific U.S. mobile phone customer which didn't have the best year so to speak. And Siliconix was burdened [ph]. But I am happy to see that we have made up for this loss at other phone customers. Shawn Harrison – Longbow Research: Okay. And finally just on metal prices, you mentioned that during your prepared commentary, I guess, what are your expectations for that going into the second quarter and how are you able to offset that if at all?

At the moment, it's hard to say, it's hard to predict. I wouldn't make resistance if I knew how to do that. But anyway, we expect in many segments that this hike which we have seen since two years is behind us really. So we hope principally but we don't know, that this increase is especially in metal prices will somehow come down. Shawn Harrison – Longbow Research: Okay. Thank you.

(Operator instructions) Your next question comes from the line of Andrew Wang. Andrew Wang – CIBC World Markets: Good morning. Can you hear me okay?

Yes.

Yes. Andrew Wang – CIBC World Markets: For the March quarter, it looks like Asia was seasonally weak and Europe was maybe a little bit stronger than seasonal.

That is correct. Andrew Wang – CIBC World Markets: I am just curious, based on what you have seen so far, would you expect Asia to rebound a little bit in the June quarter and I am curious what you are thinking for Europe?

Asia, we are pretty sure it will rebound in the second quarter, which is also seasonal as a matter of fact. Europe continues strong, at least as far as I can judge it based on April. Andrew Wang – CIBC World Markets: Okay, great. And then I think in your prepared remarks you mentioned that you would expect I think excluding the effect of currency translation, gross margins to improve sequentially through the end of year?

Yes. Andrew Wang – CIBC World Markets: Is that just based on your cost cutting initiatives that are coming into place?

It is basically cost cutting, further work on the mix in Siliconix. This is a quite an effort through all the areas of the company, going through all of the segments of the company. We expect, as I said, at comparable exchange rates and at comparable economic conditions of course also, we expect a sequentially improvement quarter after quarter in the course of this year of gross margin. Andrew Wang – CIBC World Markets: Okay. And may I ask what you are factoring in for ASP erosion? Is it kind of is historical average, below average or more than average?

It is somewhat more than last year, than we had last year, which was really low. Andrew Wang – CIBC World Markets: Thank you very much.

Your next question comes from the line of Steve Smigie. Steve Smigie – Raymond James: In terms of Siliconix gross margin, what will it look like now that you are adding in some of the IR business both the lower on a secular basis do you think?

So the number I gave you was including the IR piece, this 24%. Steve Smigie – Raymond James: Okay. Traditionally, Siliconix has had somewhat better gross margin than 24%. Can we get back to that mid-30s level at some point?

Yes, as I said, mid-30s is unrealistic. But what we said and I stick to my statement, we can come back to 27% in the course of the year. Steve Smigie – Raymond James: And on the non-Siliconix semiconductor business, where could that get to say in a positive economic environment?

We have seen gross margins of 24% there also. But this is closer to normal range. It is a commodity business. It is quite reliable. The fluctuations of gross margin in this business are smaller than for instance in Siliconix. So we expect a normal range, I would say between – 22% really at the low end, between 22% and say 25%, somewhere in between. Steve Smigie – Raymond James: Is there anything you could do there in terms of say packaging, how much of that packaging for that business is in-house versus outsourced? Is there anything you can do in terms of that?

I don't know by heart. But there is a higher share in-house in this business than at Siliconix. This is a more traditional business. The swings of mix are also less dramatic than at Siliconix, also concerning packages. But in this case, we have continued very disciplined cost reduction and we have some ideas, at least ideas what to do maybe next year. So, I think it is a solid dependable business in this range between, can I say, 23% to 25% gross margin, but close. Steve Smigie – Raymond James: And on Siliconix, what do you see the mix of business being as I guess year – does mobile start to increase, what category, what end market do you think will be stronger for Siliconix as you go throughout the year?

Siliconix is active really only in two markets mainly, these are the handsets and the laptops really. So, principally, Siliconix is just building up another business which is automotive in a major way, but it takes some time. There will not be a major mix shift going forward. Steve Smigie – Raymond James: Okay. All right. Thank you very much.

Thank you.

Your final question comes from the line of Kevin Kessel. Kevin Kessel – Bear, Stearns & Co.: Just a follow-up. So we have talked a lot about currency fluctuations as well as metals. Can you just remind us in terms of hedging activities if you currently have any underway or you plan at some point to potentially put some in place to try to alleviate that?

(inaudible) the answer. So, between the euro and the dollar, we have kind of a natural hedge. In fact, our distribution of costs is equal to our distribution of sales. So in this sense, we are in a way hedged, but Dick I relate to you.

Yes, normally, we are hedged what we call netting around the world. There has been an unusual increase or deterioration of dollar against the Israeli shekel and some other foreign currencies in India. That tends to be something that is a first-time event for us. We are studying the situation now and if we think it warrants any type of hedging, we will apply that. But, in the past, we have typically not hedged currencies. We may have hedged some type of commodities that we are buying, but not currency. Kevin Kessel – Bear, Stearns & Co.: So I mean to that point, then what about on the commodities like in metals that you are using a lot of and the changes there?

We do not really hedge. We go with the market. Of course we have – we buy ahead sometimes in a way. So we fix (inaudible) but only if a very limited form. We decided to go mostly with the market, which is a philosophy. Kevin Kessel – Bear, Stearns & Co.: Okay. So that is the philosophy now and at least for the time being that's what you expect us to stick with?

Yes. Kevin Kessel – Bear, Stearns & Co.: And then when I heard you mention tantalum on the call in prepared remarks, can you just review again what you had said? I wasn't 100% clear there.

Remember, we had major inventory as a consequence of contract which dates several years back. And we are working down this inventory, which of course also helps the cash flow. And we are working this down step by step and the year 2008 will still benefit from a cash standpoint from this reduction of about $30 million to $35 million. Kevin Kessel – Bear, Stearns & Co.: You are saying that's what you are reducing per year or that's what is left?

This is what we are going to reduce this year and then we are not completely, but close, to a normal level of inventory. Kevin Kessel – Bear, Stearns & Co.: How much tantalum do you have still on hand?

I would have to look it up – must be around $55 million approximately because $20 million (inaudible) approximately. Kevin Kessel – Bear, Stearns & Co.: So give or take $55 million at this point?

We can look it up, no problem. Approximately right. Kevin Kessel – Bear, Stearns & Co.: Approximately. It could approximately last you until fiscal '09 assuming you get that mix of orders?

Yes. There's no inventory risk. Kevin Kessel – Bear, Stearns & Co.: Okay. And then from a restructuring point of view, is this it for the year, the $18 million? It sounds like the charge is all taken in the quarter for the $0.03 you mentioned.

Not everything, I said a major portion of the restructuring is taken in the first quarter. Kevin Kessel – Bear, Stearns & Co.: Okay, so there might be more to come. The asset write-down of $4.2 million, was that at all applicable to tantalum or not?

It was Brazil.

This was in the context of closing and receiving Brazil. Kevin Kessel – Bear, Stearns & Co.: Great. And the last thing, you mentioned the notebook market, you saw some encouraging signs. If you could just expand on that, that would be great.

We were surprised it was good. Cannot explain more, I just wanted to get across that we had a good quarter order wise across the board in especially (inaudible). Kevin Kessel – Bear, Stearns & Co.: When you say you are surprised, it was good that was in the March quarter or is that in the month of April or is that both?

It was in the March quarter. Kevin Kessel – Bear, Stearns & Co.: In the March quarter, and this is primarily on the Siliconix side for low-power MOSFET or –?

Yes. Kevin Kessel – Bear, Stearns & Co.: As opposed to the passive?

Right. Kevin Kessel – Bear, Stearns & Co.: Okay. Thanks so much.

Thank you.

Okay. I want to thank you for joining us for our first quarter financial call, and your attention and questions during this period. We look forward to again getting together in July of this year. Thank you very much.

This concludes today's Vishay's first quarter 2008 earnings results conference call. You may now disconnect.