Revenue for the second quarter was $68.1 million and new orders were $72.1million, resulting in a book to bill ratio of 1.06.

Revenue in the second quarter was up seven percent compared to the previousquarter revenue of $63.4 million, and down 44 percent from the same quarterlast year.

Gross margin in the second quarter was 41 percent, which included plannedrestructuring charges of $1.3 million related to cost of goods sold.Excluding one-time charges, operating expenses were $38.7 million for thequarter, down $4.5 million, or 10%, from the prior quarter. Includingone-time charges, operating expenses for the quarter were $44 million, andincluded the following charges: restructuring expenses of $1.9 million and$3.4 million associated with the sale of the Diagnostics andCharacterization product line.

The net loss for the second quarter was $18.7 million or $0.18 per share,versus a net loss of $56.1 million or $0.55 net loss per share in theprevious quarter. The net loss for the second quarter of fiscal 2007 was$3.5 million, or $0.03 net loss per share.

Cash and short term investments were $228 million in the second quarter ascompared to $241 million in the first quarter of fiscal 2008.

"I am very excited about the reception Diamond has received from ourcustomers. All of our test platforms have now reached critical mass and weare seeing an increase in demand for our products in the consumer markets,"said Lavi Lev, President and Chief Executive Officer of Credence. "We arealso making good progress on our restructuring plans and the operationalefficiencies that should lead to our profitability goals."

Third quarter fiscal 2008 outlook

Net sales in the third quarter of fiscal 2008 are expected to beapproximately $64 million to $68 million, with a gross margin range of45-47 percent resulting in a loss of $8-10 million or $0.08 to $0.10 pershare.

Conference Call/Webcast

Credence will hold a conference call to discuss these results today,Monday, June 2, 2008, at 5:00 pm ET. The call will be simulcast via theCredence web site at www.credence.com under the"Investor Relations-Financial Information-Webcasts" section. A replay ofthe call will be available via phone and on the web site through July 2,2007. The replay number in the U.S. and Canada is (888) 286-8010 andoutside the U.S. and Canada is (617) 801-6888. The passcode is 68453766. Areplay will also be available on the Credence web site www.credence.comunder the Investor Relations section.

About Credence

Credence Systems Corporation is a global provider of automated testequipment (ATE) solutions to the high growth, consumer semiconductorindustry. Credence is committed to deliver the highest standards of value-- an optimal combination of technology, turn-around time, reliability,ease of use, service and support -- to every customer, which enablesimportant cost and performance advantages for integrated devicemanufacturers (IDMs), wafer foundries, outsource assembly and test (OSAT)suppliers and fabless chip companies worldwide. An ISO 9001-certifiedcompany with a presence in 20 countries, Credence is headquartered inMilpitas, California. More information is available athttp://www.credence.com.

Credence is a trademark of Credence Systems Corporation. Other trademarksthat may be mentioned in this release are the intellectual property oftheir respective owners.

Forward-Looking Statements

This release contains statements that are forward-looking within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended, includingstatements regarding the reception Diamond has received from our customers,the increase in demand for our products in consumer markets, the progressmade on restructuring plans and operational efficiencies, our profitabilitygoals and expected sales, gross margin and loss per share for the thirdfiscal quarter of 2008. These forward-looking statements involve importantfactors that could cause our actual results to differ materially from thosein the forward-looking statements.