CUPERTINO, Calif. - July 8, 2009 - Verigy (NASDAQ: VRGY), announced today its intention to offer $110 million aggregate principal amount of convertible senior notes due 2014, subject to market conditions and other factors. The notes are to be offered and sold to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Verigy also expects to grant to the initial purchasers of the notes an option to purchase up to an additional $16.5 million aggregate principal amount of the notes solely to cover over-allotments.

The notes will be unsecured and unsubordinated obligations of Verigy and will rank equally in right of payment with all of Verigy’s future unsecured and unsubordinated indebtedness. Interest will be payable semi-annually in arrears, and the notes will be convertible into Verigy’s ordinary shares. Verigy expects to have the right to redeem the notes in whole or in part at a specified redemption price at any time on or after July 20, 2012 if certain conditions are met. The interest rate, conversion rate, offering price and other terms will be determined at the time of pricing of the offering based on negotiations with the initial purchasers.

About Verigy
Verigy provides advanced semiconductor test systems and solutions used by leading companies worldwide in design validation, characterization, and high-volume manufacturing test. Verigy offers scalable platforms for a wide range of system-on-chip (SOC) test solutions, and memory test solutions for flash, DRAM including high-speed memories, as well as multi-chip packages (MCP). Advanced analysis tools accelerate design debug and yield ramp processes for Verigy’s customers. Additional information about Verigy can be found at www.verigy.com.


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Editorial Contact:
Judy Davies
VP, Investor Relations and Marketing Communications
+1 408.864.7549
judy.davies@verigy.com