Cohu, Inc. (NASDAQ: COHU) today announced that its Delta Design unit was named a recipient of Intel Corporation’s Preferred Quality Supplier (PQS) award for outstanding performance in providing products and services deemed essential to Intel’s success. The company was recognized for its efforts in supplying Intel with test handlers and burn-in equipment. Delta Design and 34 additional PQS award winners were honored at a celebration in Burlingame, California on March 18.

"Delta Design is proud to receive Intel's prestigious Preferred Quality Supplier Award," said James A. Donahue, President and CEO. "This is the eighth consecutive year that Intel has recognized Delta Design with a quality award and it symbolizes the long term, successful partnership that continues to grow between our companies. Intel's standards and expectations are high and it is a significant accomplishment to consistently deliver the advanced technology, manufacturing capability and total support that Intel requires. Congratulations to the entire worldwide Delta Design team."

“Congratulations to Delta Design for demonstrating its customer orientation and commitment to quality to meet our high expectations. Delta’s effort included strong engagement in next generation handler development and outstanding global support of our factories. It’s a pleasure to present the PQS award for the eighth consecutive year to a very deserving supplier,” said Bimal Dey, director of Intel Test Operation.

The PQS awards are part of Intel’s Supplier Continuous Quality Improvement (SCQI) process that encourages suppliers to strive for excellence and continuous improvement. To qualify for PQS status, suppliers must score 80 percent on a report card that assesses performance and ability to meet cost, quality, availability, delivery, technology and responsiveness goals. Suppliers must also manage and deliver on a challenging improvement plan and a quality systems assessment. Additional information about the SCQI program is available at http://supplier.intel.com/quality.

Intel also recognized PQS award winners with an advertisement in the U.S., Europe and Asia editions of The Wall Street Journal on March 18, 2008.

About Delta Design, Inc., a Cohu Company

Delta Design, a subsidiary of Cohu, Inc. in Poway, California, is a leading supplier of automated test handling and thermal solutions used by the global semiconductor industry. Cohu, Inc. companies also design and manufacture closed circuit television and microwave communications equipment.

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com. Contact: Jeffrey D. Jones - Investor Relations (858) 848-8106; Delta Sales (978) 486-1060 or visit www.deltad.com.