MENLO PARK, CA, July 25, 2005 /PRNewswire — Ultra Clean Holdings, Inc. (Nasdaq: UCTT ) , a leading developer and supplier of critical subsystems for the semiconductor capital equipment industry, producing primarily gas delivery systems, today reported financial results for the second quarter, ended June 30, 2005. The Company recorded revenue of $39.3 million and net income of $692,000 or $0.04 per share on a fully diluted basis, in line with company guidance. Among the highlights of the Company's second quarter was the rapid growth in revenue generated by our facility in Shanghai, which was officially opened in the first quarter of 2005 and recently began producing and shipping gas panels to two customers. Additionally, the company continued to execute against the strategy to extend its product offering, with process module shipments made in the second quarter to a significant OEM customer.

Revenue for the second quarter of 2005 totaled $39.3 million, compared to revenue for the first quarter ended March 31, 2005 of $41.9 million, a decrease of 6.2%. Revenue for the second quarter decreased 27.9% compared to revenue of $54.5 million for the same period a year ago. The company recorded net income of $692,000, or $0.04 per share on a fully diluted basis, during the second quarter of 2005, compared to net income of $1.2 million, or $0.07 per share for the first quarter of 2005 and net income of $3.1 million, or $0.18 per share for the same period a year ago. Gross margin for the second quarter of 2005 was 14.2% versus 15.9% for the first quarter of 2005 and 16.4% for the same period a year ago.

Clarence Granger, UCT's President and Chief Executive Officer, commented on the second quarter results: "We are very pleased that UCT's second quarter revenues and earnings were in line with guidance, despite slower industry conditions. We are also pleased with several significant achievements during the second quarter: we made our first shipments of process modules as planned in the quarter; shipped products to two customers in volume out of our new facility in Shanghai, China; and expanded our frame assembly product offering to our current customer."  

Granger continued: "We have been very successful in completing sales of our non-gas panel, subassembly products, which reached $2.4 million in the second quarter of 2005, from $2.1million in the first quarter of 2005. We are continuing to focus on expanding our reach into the semiconductor process tool with the goal of becoming a more valued outsource supplier to our customers and the industry."

Commenting on UCT's corporate outlook, Granger noted, "Consistent with softness across the broader semiconductor capital equipment industry, we expect revenue for the third quarter of 2005 to be down sequentially to between $25 and $30 million, and net loss per share to range between $0.04 and $0.09. We have responded appropriately to softening industry demand by reducing headcount and inventory, and continue to advance our strategic positioning for long term growth."

About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems for the semiconductor capital equipment industry, focusing on gas delivery systems. Ultra Clean offers its customers a complete outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean's customers are primarily original equipment manufacturers of semiconductor capital equipment. Ultra Clean is headquartered in Menlo Park, California. Additional information is available at www.uct.com.

Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward- looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "believes," "plan," "expect," "future,"' "intends," "may," "will," "should," "estimates," "predicts," "potential," "continue" and similar expressions to identify these forward-looking statements.   Forward looking statements included in the press release include estimates made with respect to our third quarter revenue and diluted loss per share.   All forward-looking statements address matters that involve risks and uncertainties. Accordingly, our actual results may differ materially from the results predicted or implied by these forward- looking statements. These risks, uncertainties and other factors include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 31, 2004 and quarterly report on Form 10-Q for the quarter ended March 31, 2005, each filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.