MENLO PARK, CA, FEBRUARY 19, 2008 / PRNewswirre / — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries, today reported its financial results for the fourth quarter ended on December 28, 2007. Revenues for the fourth quarter of 2007 were $92.8 million, compared to revenues of $95.5 million in the third quarter of 2007, a decrease of 2.9%, and compared to revenues of $107.5 million for the same period a year ago, a 13.7% decrease. The company recorded net income of $2.3 million, or $0.10 per diluted share, during the fourth quarter of 2007, compared to $3.5 million or $0.16 per diluted share, for the third quarter of 2007 and net income of $4.7 million, or $0.22 per diluted share, for the same period a year ago. Gross margin for the fourth quarter of 2007 was 12.7%, compared to 14.0% for the third quarter of 2007, and 15.3% for the same period a year ago.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer commented:  "Our results reflect very challenging industry conditions. Though industry demand was down, increased year-end rescheduling actions by our customers resulted in inefficiencies which drove higher operating costs. While we hit our guidance range for both revenue and earnings per share, and generated $11.2 million in cash, we look to significantly improve our performance in the short term."

Cash at the end of the fourth quarter of 2007 was $33.4 million, an increase of $5.4 million from $28.0 million at the end of the third quarter of 2007, and an increase of $10.1 million from $23.3 million at the end of the fourth quarter of 2006. Third party debt at the end of the fourth quarter was $22.2 million, a decrease of $5.8 million from $28.0 million at the end of the third quarter of 2007 and a decrease of $9.4 million from $31.6 million at the end of the fourth quarter of 2006.

Granger continued, "I am pleased to announce two new product orders from recently added customers. One is for a sub-system which brings new functionality to a medical device assembly which we currently produce. The other is our first non-gas delivery process module for a customer who previously had purchased only gas-delivery equipment. These wins reflect further success toward our stated objective to grow faster than the semiconductor capital equipment industry by capturing a significant share of the expanding outsourced equipment market."

Commenting on Ultra Clean's corporate outlook, Granger noted, "While we remain very confident in our strategic direction and our long term ability to grow faster than the industry, we remain cautious about the near term outlook, due to uncertain market conditions. We expect that revenue for the first quarter of 2008 will range between $90 million and $97 million, and net income per share to range between $0.08 and $0.14 per share, inclusive of an expected $0.01 per share charge for amortization of intangibles and $0.04 per share charge related to SFAS 123(R)."

Ultra Clean will conduct a conference call today, Tuesday, February 19, 2008, beginning at 2:00 p.m. PDT at 800/909-4145 (domestic) and 212/231-2900 (international). A replay of the webcast will be available for fourteen days following the conference call at 800/633-8284 (domestic) and 402/977-9140 (international). The confirmation number for the live broadcast and replays is 21373680 (all callers). The conference call will also be webcast live and be available for fourteen days on our website.

About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean offers its customers an integrated 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 for the semiconductor capital equipment, flat panel, solar and medical device industries. 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 fourth quarter revenue and diluted earnings 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 29, 2006 and quarterly report on Form 10-Q for the quarter ended September 28, 2007 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.