Revenues of $26.1 million, up 18% sequentially and up 26% year over year

LIVERMORE,CA— October 16,2003—FormFactor,Inc.(NASDAQ:FORM)today announced its financial results for the third quarter of fiscal year 2003, ended September 27, 2003. Quarterly revenues were $26.1 million, up 18% from $22.1 million in the second quarter of fiscal year 2003, and up 26% from $20.7 million for the same period in fiscal year 2002.

Revenues for the first nine months of fiscal year 2003 were $66.8 million, up 18% from $56.5 million in the first nine months of fiscal year 2002.

Net income for the third quarter of fiscal year 2003 was $2.5 million or $0.07 per share on a fully diluted basis, compared to $1.3 million or $0.04 per share on a pro forma fully diluted basis for the second quarter of fiscal year 2003, and $7.2 million or $0.20 per share pro forma for the same period of fiscal year 2002, which included a one time tax benefit of $0.16 per share on a pro forma fully diluted basis. Excluding such benefit, earnings per share for the third quarter of fiscal year 2003 increased by $0.03 per share on a pro forma fully diluted basis over the third quarter of fiscal year 2002.

Net income for the first nine months of fiscal year 2003 was $4.5 million or $0.12 per share on a pro forma fully diluted basis, compared to $8.8 million or $0.24 per share pro forma for the first nine months of fiscal year 2002.

Pro forma earnings per share have been adjusted for the three months ended September 28, 2002, and June 28, 2003, and for the nine months ended September 28, 2002 and September 27, 2003, assuming the initial public offering had occurred at the beginning of fiscal year 2002 and reflect the conversion to common stock of all redeemable convertible preferred stock, and the issuance of the common shares issued in the initial public offering. The Company believes the pro forma earnings per share presentation represents a meaningful alternative basis for the comparison of its current results to results during fiscal periods occurring prior to the Company’s initial public offering.

On a GAAP fully diluted basis, net income for the third quarter of fiscal year 2003 was $0.07 per share and requires no pro forma adjustment, net income for the second quarter of fiscal year 2003 was $0.04 per share and $0.24 per share for the same period of fiscal year 2002. Also on a GAAP fully diluted basis, net income for the nine month period of fiscal year 2003 was $0.14 per share, compared to $0.30 per share for the first nine months of fiscal year 2002.

Operating Income for the third quarter of fiscal year 2003 was 13.5% of revenues, up from 8.8% for the second quarter of fiscal year 2003, and up from 10.1% for the third quarter of fiscal year 2002.

Bookings of $29.1 million for the third quarter of fiscal year 2003 increased 14% from $25.5 million for the second quarter of fiscal year 2003 and were up 35% from $21.6 million for the third quarter of fiscal year 2002.

Igor Khandros, President and CEO of FormFactor stated, “We continue the execution of our business plan as shown by ongoing design wins across all targeted market segments. Our technology roadmap alignment with our customers has and continues to enable our customers’ transitions to new and more advanced process technologies and device architectures. The economic benefit of our high parallelism memory products continues to drive demand for our products in the progressing 300mm DRAM conversion.”

The Company will conduct a conference call at 1:30 p.m. PDT, or 4:30 p.m. EDT, today. The public is invited to listen to a live web cast of FormFactor’s conference call on the investor relations section of the Company’s website at www.formfactor.com. A replay of the web cast will be available approximately two hours after the conclusion of the call. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until October 20, 2003 at 10:00 p.m. PDT and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering confirmation code 262032.