ORBOTECH LTD.

                                                    RECONCILIATION OF GAAP TO NON-GAAP RESULTS

                                                        U.S. dollars in thousands (except per share data)

                                                                                                (Unaudited)

Nine months ended

Three months ended

September 30,

September 30,

2017

2016

2017

2016

Reported operating income on GAAP basis

$94,671

$80,881

$44,037

$30,820

Equity-based compensation expenses

6,982

4,319

2,480

1,361

Amortization of intangible assets

18,635

20,750

6,371

7,615

Non-GAAP operating income

$120,288

$105,950

$52,888

$39,796

Reported net income attributable to Orbotech Ltd. on GAAP basis

$76,504

$53,807

$36,554

$24,713

Equity-based compensation expenses

6,982

4,319

2,480

1,361

Amortization of intangible assets

18,635

20,750

6,371

7,615

Tax effect of non-GAAP adjustments

(2,244)

(2,410)

(748)

(887)

Share in losses of equity method investee

450

150

Charges associated with the retirement of the 2014 Credit Agreement

6,228

Non-GAAP net income

$99,877

$83,144

$44,657

$32,952

GAAP earnings per diluted share

$1.57

$1.17

$0.75

$0.51

Non-GAAP earnings per diluted share

$2.05

$1.81

$0.91

$0.68

Shares used in earnings per diluted share computation - in thousands

48,812

45,813

48,903

48,385