EQUITY RESEARCH QUARTERLY UPDATE

February 14, 2012 Stock Rating: TECHNOLOGY/APPLIED TECHNOLOGY

OUTPERFORM
12-18 mo. Price Target ORBK - NASDAQ 3-5 Yr. EPS Gr. Rate 52-Wk Range Shares Outstanding Float Market Capitalization Avg. Daily Trading Volume Dividend/Div Yield Fiscal Year Ends Book Value 2012E ROE LT Debt Preferred Common Equity Convertible Available
EPS Diluted 2010A 2011A Prior (E) 2012E Prior (E) Q1 0.06 0.31 -0.03 0.32 Q2 0.35 0.48 -0.07 0.38 Q3 0.51 0.34 -0.44 0.37 Q4 0.17 0.06 0.28 0.53 0.39

Orbotech
$16.00 $11.05 20% $15.32-$8.95 43.1M 38.4M $476.3M 94,867 NM/NM Dec $10.91 13.6% $112.0M NM $361M No
Year 1.09 1.13 1.36 1.08 1.45 Mult. 10.1x 9.8x 8.1x 10.2x 7.6x s

2H12 Good; Because of Which CE Gadget? Phone, Tablet, TV; Stock Still Cheap
SUMMARY

Some questioned Orbotech's 2H confidence, but we did not. No company's woven into Apple's DNA and ORBK's products launch as Orbotech because its tools are used by whoever makes Apple's or Amazon's products, whether it's Samsung or Quanta today, LG tomorrow or Sharp the day after. Indeed, if Sharp's involved in making Apple TV monitors, guess who benefits?ORBK. Yes, ORBK had trouble meeting estimates in 4Q11but investing is about tomorrow, and 2H belongs to gadgets tested with ORBK's tools and the 1H bar has been set conservatively lowso our Outperform and PT of $16 stay.
KEY POINTS s

Orbotech A Likely 2H Winner: We think Orbotech is still undervalued, so keep our $16 PT despite lower 2012 revenue/EPS estimates, a reality due to soft FPD and a soft monitor market (Thai floods) continuing in 1Q12. Also what Apple wants, Apple gets, and, if it pays, such as helping Sharp, ORBK benefits. Bright Spots: 1) Touchscreen segment-related revenues are likely to double in 2012; 2) High density, interconnects for mobile devices are growing; Chinese wages are not getting cheaper; 3) expecting FPD recovery in 2H12 helped by investments in China, Apple TV and/or other devices; additionally from higher resolution 2k, 4K screens. Guidance: CY12 revenues of $500M, with $190-200M in 1H, GAAP and non-GAAP net income/share of $1-1.10 and $1.40-1.50 after $2M restructuring in 1Q12 related to soft FPD, GM at 43-44%. Strong small/medium sized display (80% FPD revenues in 2012)read-through similar to GLW, AUO-strong smartphone, tablet/touchscreen demand. 4Q11 Results: ORBK's 4Q11 revenue/non-GAAP of $133M/$0.15, was below Street's $138M/$0.30 and guide of $138M/$0.34-0.38 given challenging macro PCB revenues were $52.7M whereas FPD revenues were $42.5M with geographical distribution of China 26%, Korea 10%, Taiwan 14%, Japan 26% (Sharp?), North America 11%, Europe and other 13%. Estimate Change: Our revenues/GAAP EPS for FY12 go from $540M/$1.45 to $495M/$1.08 vs. consensus of $547M/$1.23. Our PT remains $16 on 10x CY12E EPS of $1.08 plus at least $5.5/sh in cash in 2012.
Company Description
Orbotech designs, develops, manufactures, markets and services automated optical inspection (AOI) systems for bare PCBs, FPDs, and imaging solutions for PCB production.

Stock Price Performance

1 Year Price History for ORBK
16 14 12 10 8
Q1 Q2 Q3 Q1

2011

2012

Created by BlueMatrix

Srinivasan Sundararajan, Ph.D. 415-399-5730

Srinivasan.Sundararajan@opco.com

Oppenheimer & Co. Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. See "Important Disclosures and Certifications" section at the end of this report for important disclosures, including potential conflicts of interest. See "Price Target Calculation" and "Key Risks to Price Target" sections at the end of this report, where applicable.
Oppenheimer & Co Inc. 300 Madison Avenue New York, NY 10017 Tel: 800-221-5588 Fax: 212-667-8229

Stock Prices as of 2-13-12 Sharp (6753-JP 529 JPY, Not Rated) , Samsung (005930-KR, 1083000KRW, Not rated) LG Display (034220-KR, 29950KRW, Not Rated) Quanta Computer (2382-TW, 70.90NTD, Not Rated)

Exhibit 1. ORBK Quarter At A Glance Summary

4Q Results Parameter Sales GAAP EPS non-GAAP EPS Gross Margin FPD Related Sales PCB Related Sales Service Revenue Solar sales Character Recognition

Magnitude 133.3M $0.06 $0.15 36.4% $52.7M $42.5M $36M N/A $1.4M Dow n 8% Q/Q, up 4% Y/Y

Comments

Dow n 83% Q/Q, dow n 65% Y/Y

Annual PCB rev (product and service) exceeded $300M for the first time, a record year for Direct Imaging products

2012 Outlook Parameter Sales $500M

Magnitude

Comments $190-200M for 1H12, $500M for the w hole year, Direct imaging units to show slight grow th, small/medium size panel related FPD sales 80% indicating smartphone, tablet, touch screen revenue grow th

GAAP EPS non GAAP EPS Opex level in 2012 Gross Margin for CY12

$1.0-1.1 $1.4-1.5

43-44%

2H margins better than those during 1H

Source: ORBK, Opco Research (dollar amounts in $ Millions, except for EPS, in $)

Exhibit 2. ORBK Income Statement

Orbotech Incom e Statem ent (in $M except for shares) Total Sales Y/Y, % Q/Q, % Total Cost of Sales Gross Profit Incremental GM, % Y/Y Incremental GM, % Q/Q R&D SG&A Amort of Goodw ill Operating Profit Restructuring Net Interest Expense (Income) Pretax Profit Share in Profits of Affiliates Minority Interest Taxes Incom e before extraordinaries Extraordinary Expense (Income) Net Incom e Year-over-Year- Grow th EPS before Extraord. - Basic (GAAP) EPS before Extraord.- Diluted (GAAP) EPS - Prim ary before Restruct. EPS - Fully Dil. before Restruct Avg. Shares - Basic Avg .Shares - Diluted Net Income - Non GAAP to GAAP Reconciliation Reported Net Income GAAP Non-operating incom e (expenses) Financial Expenses (net) Income tax Benefit (expense) Net Income Attributable to Non-Controlling Interest Loss from discontinued operation Reported operating incom e(loss) on GAAP Basis Equity Based Compensation Expenses Amortization of Intangible assets Impairment of goodw ill Impairment of other intangible assets Non GAAP operating incom e Non-operating expenses Loss from discontinued operations Non GAAP Net Incom e from Continuing Operations Non GAAP EPS per diluted share Shares Used in Calculation Margins as a %age of Sales Total Gross Margin Operating Margin Tax rate Q1 Mar 134.2 30% 5% 78.5 55.7 44% 137% 20.2 17.4 3.1 15.0 2.1 12.9 1.8 11.1 (0.1) 11.2 400% 0.32 $ 0.31 0.31 0.30 35.2 36.5 11.2 (2.1) (1.8) 0.1 (3.8) 15.0 1.1 3.1 $ $ $ Q2 Jun 153.4 4% 14% 89.2 64.2 61% 44% 21.0 18.4 3.1 21.7 1.8 19.9 2.3 17.6 (1.3) 18.9 52% 0.50 $ 0.48 0.46 0.45 38.0 39.0 18.9 (1.8) (2.3) 1.3 (2.8) 21.7 1.1 3.1 $ $ $ 2011 Q3 Sep 144.4 -9% -6% 83.7 60.7 41% 39% 21.3 18.0 3.1 18.3 1.8 16.5 0.0 1.7 14.7 0.0 14.7 -20% 0.34 $ 0.34 0.34 0.34 43.2 43.9 14.7 (1.8) (1.7) (0.0) (0.0) (3.6) 18.3 0.8 3.1 $ $ $ Q4 Dec 133.3 4% -8% 84.8 48.6 17% 110% 21.6 18.9 3.1 5.0 0.8 4.1 0.1 (0.3) 1.9 2.5 2.5 -57% 0.06 $ 0.06 0.06 0.06 43.3 44.0 2.5 (0.8) (1.9) 0.0 (2.7) 5.2 0.8 3.1 9.1 (2.7) 6.5 0.15 $ 44.0 36.4% 4% 17% $ $ $ 2011 YearE 565.3 5% 336.2 229.1 45% 84.2 72.6 12.3 60.0 6.6 53.4 (0.3) 7.7 46.1 (1.3) 47.4 21% 1.22 1.13 1.15 1.15 39.9 40.8 47.4 (6.6) (7.7) 1.3 (12.9) 60.3 3.7 12.3 Q1 Mar 95.0 -29% -29% 53.9 41.1 37% 19% 19.0 15.8 3.1 3.2 2.1 1.1 0.2 0.9 (0.4) 1.3 -88% 0.03 $ 0.03 0.02 0.02 43.5 44.2 1.3 (2.1) (0.2) 0.4 (1.9) 3.2 1.1 3.1 $ $ $ Q2 Jun 100.0 -35% 5% 56.0 44.0 38% 58% 19.5 16.5 3.1 4.9 1.8 3.2 0.4 2.7 (0.4) 3.1 -84% 0.07 $ 0.07 0.06 0.06 43.7 44.4 3.1 (1.8) (0.4) 0.4 (1.9) 4.9 1.1 3.1 $ $ $ 2012E Q3E Sep 145.0 0% 45% 81.2 63.8 489% 44% 19.5 16.5 3.1 24.7 2.0 22.7 0.1 3.2 19.4 (0.4) 19.8 34% 0.44 $ 0.44 0.44 0.44 43.9 44.5 19.8 (2.0) (3.2) 0.4 (4.8) 24.6 1.1 3.1 $ $ $ Q4E Dec 155.0 16% 7% 86.2 68.8 94% 50% 19.5 16.5 3.1 29.7 2.0 27.7 0.1 4.2 23.5 (0.4) 23.8 835% 0.53 $ 0.53 0.53 0.53 44.2 44.6 23.8 (2.0) (4.2) 0.4 (5.8) 29.6 1.1 3.1 $ $ $ 2012 YearE 495.0 -12% 277.3 217.7 16% 77.5 65.3 12.3 62.6 7.9 54.7 0.2 7.9 46.5 (1.4) 47.9 1% 1.07 1.08 1.06 1.05 43.8 44.4 47.9 (7.9) (7.9) 1.4 (14.4) 62.4 1.1 12.3

$ $ $ $

$ $ $ $

19.2 (3.8) (0.1) 15.2 0.42 $ 36.5 41.5% 11% 14%

25.8 (2.8) (1.3) 21.8 0.56 $ 39.0 41.8% 14% 11%

22.1 (3.6) 18.6 0.42 $ 43.9 42.0% 13% 10%

76.3 (12.9) (1.3) 62.1 1.52 40.8 41% 11% 14%

7.3 (1.9) (0.4) 5.1 0.11 $ 44.2 43.3% 3% 14%

9.1 (1.9) (0.4) 6.9 0.15 $ 44.4 44.0% 5% 14%

28.8 (4.8) (0.4) 23.6 0.53 $ 44.5 44.0% 17% 14%

33.8 (5.8) (0.4) 27.7 0.62 $ 44.6 44.4% 19% 15%

75.9 (14.4) (1.4) 60.0 1.35 44.4 44% 13% 15%

Source: ORBK, Opco Research (amounts in $ Millions, except for EPS, in $, and, the share count)

Exhibit 3. ORBK Balance Sheet

2011 Q3 Sep 288.8 225.3 120.9 5.9 640.9 24.1 13.5 70.0 9.9 117.6 758.5 2012E Q3E Sep 304.4 209.4 126.3 6.0 646.2 20.8 14.3 66.9 12.6 114.6 760.8

Balance Sheet Assets Cash & equivalents Receivables Inventories (net) Other current assets Total current assets Property, Plant, Equipment Long-Term Investments Goodw ill and Intangibles Other assets Total long-term assets Total Assets Liabilities Notes pay. & current portion of LTD Accounts payable Accrued expenses Other Current Liabilities Total current liabilities Long-term debt Minority Interest Other liabilities Total long-term liabilities Total Liabilities Shareholder's equity Total Equity Total Liabs + Ow ner's Eq.
Source: ORBK, Opco Research (figures/ cash in $M)

Q1 Mar 194.0 196.3 114.2 9.0 513.5 24.1 14.0 75.4 12.6 126.0 639.5

Q2 Jun 296.5 214.6 122.7 6.0 639.8 23.4 13.2 72.3 12.6 121.5 761.3

Q4 Dec 296.5 222.4 105.1 6.6 630.6 26.7 14.3 66.9 9.0 116.9 747.5

2011 YearE 296.5 222.4 105.1 6.6 630.6 26.7 14.3 66.9 9.0 116.9 747.5

Q1 Mar 370.3 137.2 83.9 6.0 597.4 24.4 14.3 66.9 12.6 118.2 715.6

Q2 Jun 364.2 144.4 87.1 6.0 601.8 22.2 14.3 66.9 12.6 116.0 717.8

Q4E Dec 309.6 223.9 134.1 6.0 673.6 19.5 14.3 66.9 12.6 113.2 786.8

2012 YearE 309.6 223.9 134.1 6.0 673.6 19.5 14.3 66.9 12.6 113.2 786.8

32.0 84.3 29.0 145.2 88.0 41.9 129.9 275.1

32.0 104.0 28.1 164.1 80.0 45.0 125.0 289.1

32.0 94.6 29.3 155.9 72.0 44.2 116.2 272.1

32.0 89.9 25.9 147.9 64.0 1.6 45.5 111.1 258.9

32.0 89.9 25.9 147.9 64.0 1.6 45.5 111.1 258.9

32.0 57.0 25.9 114.9 56.0 41.9 97.9 212.8

32.0 60.0 25.9 117.9 48.0 45.0 93.0 210.9

32.0 87.0 25.9 144.9 40.0 45.0 85.0 229.9

32.0 93.0 25.9 150.9 32.0 45.0 77.0 227.9

32.0 93.0 25.9 150.9 32.0 45.0 77.0 227.9

364.4 639.5

472.2 761.3

486.4 758.5

488.6 747.5

488.6 747.5

502.8 715.6

506.9 717.8

530.9 760.8

558.9 786.8

558.9 786.8

Exhibit 4. ORBK Cash Flow Statement

2011 Q3 Sep 2012E Q3E Sep

Statem ent of Cash Flow s Operating Net Income Depreciation & amortization Change in Working Capital (net of cash) Change in other asset/liab accounts Net cash from operating Investing Sale /(Purchase) of PPE Other Net cash from investing Financing Net Proceeds from borrow ings Net Proceeds from equity issuance Net cash from financing Other Net change in cash

Q1 Mar

Q2 Jun

Q4 Dec

YearE

Q1 Mar

Q2 Jun

Q4E Dec

2012 YearE

11.2 5.1 (10.5) 2.9 8.7

18.9 4.9 (0.7) (2.3) 20.8

14.8 5.1 (18.7) 2.3 3.5

2.2 4.9 10.2 0.5 17.8

47.0 20.0 (19.6) 3.4 50.9

1.3 6.5 74.1 81.8

3.1 6.5 (7.5) 2.1

19.8 6.5 (77.2) (51.0)

23.8 6.5 (16.2) 14.1

47.9 26.0 (26.8) 47.1

(1.2) 10.6 9.3

(1.1) (61.1) (62.3)

(2.8) (67.9) (70.7)

(2.4) (15.2) (17.5)

(7.6) (133.6) (141.2)

(1.2) (1.2)

(1.2) (1.2)

(2.0) (2.0)

(2.0) (2.0)

(6.4) (6.4)

(8.0) 1.1 (6.9) 0.0 11.1

(8.0) 91.0 83.0 (0.0) 41.6

(8.0) 0.2 (7.8) (75.0)

(8.0) 0.4 (7.6) (7.3)

(32.0) 92.7 60.7 (29.6)

(8.0) 1.1 (6.9) 73.7

(8.0) 1.1 (6.9) (6.0)

(8.0) 1.1 (6.9) (59.9)

(8.0) 1.1 (6.9) 5.2

(32.0) 4.4 (27.6) 13.1

Source: ORBK, Opco Research (cash in $Millions)

Investment Thesis Orbotech supplies inspection and repair tools to both the flat panel and printed circuit board industries. Orbotech's tools are used in the manufacture of mobile phones and tablets as well as TVs. Clearly, the flat panel display industry has been troughing for quite a while; therefore, in the absence of a pickup in FPDs, PCB-sourced revenues will be the area of growth for Orbotech. That said, the shares are trading very cheaply at 10x CY12 EPS consensus forecasts and will have $5+ per share in cash in 2012. Price Target Calculation We rate ORBK Outperform with a price target of $16, Our prior price target (unchanged) was calculated based on 11x our CY12 GAAP EPS prior projection of $1.45, now it is based on 10x CY12 GAAP EPS of $1.08 plus more than $5/share in cash in 2012. Realize however, the 11x multiple is off of GAAP EPS, not non-GAAP EPS, whereas in the case of most of the other semiconductor equipment stocks in the sister sector, the multiple is 10x off of non-GAAP EPS. Key Risks to Price Target Downside risk comes mainly from a global macroeconomic slowdown. In addition, the company does sell to a concentrated set of customers, but that is the way it is in high-tech manufacturing. Finally, daily volume is only about 100,000 to 150,000 shares, so it there is trading liquidity risk. Upside price target risk will happen if the global economy improves more than expected currently.

Important Disclosures and Certifications

Analyst Certification - The author certifies that this research report accurately states his/her personal views about the subject securities, which are reflected in the ratings as well as in the substance of this report.The author certifies that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. Potential Conflicts of Interest: Equity research analysts employed by Oppenheimer & Co. Inc. are compensated from revenues generated by the firm including the Oppenheimer & Co. Inc. Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. Oppenheimer & Co. Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, Oppenheimer & Co. Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers. In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, Oppenheimer & Co. Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by Oppenheimer & Co. Inc:
Stock Prices as of February 14, 2012

AU Optronics Corp. (AUO - NYSE, 5.52, UNDERPERFORM) Corning Inc. (GLW - NYSE, 13.67, PERFORM) Apple Inc. (AAPL - Nasdaq, 502.60, OUTPERFORM) Amazon.Com, Inc. (AMZN - Nasdaq, 191.59, OUTPERFORM)

Rating and Price Target History for: AU Optronics Corp. (AUO) as of 02-13-2012
02/22/10 U:NA 04/22/10 P:NA 11/16/10 U:NA

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Rating and Price Target History for: Corning Inc. (GLW) as of 02-13-2012
03/19/09 O:$15 04/13/09 P:NA 08/17/09 O:$19 10/26/09 O:$20 01/04/10 O:$22 02/08/10 O:$21 02/22/10 P:NA 08/25/10 O:$20 11/16/10 P:NA

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Rating and Price Target History for: Apple Inc. (AAPL) as of 02-13-2012
04/22/09 O:$140 06/03/09 O:$160 07/22/09 O:$185 10/01/09 O:$210 10/20/09 O:$235 01/26/10 O:$255 01/27/10 O:$265 04/15/10 O:$285 04/21/10 O:$320 06/25/10 O:$345 07/19/10 O:$330

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10/07/10 O:$345 01/03/11 O:$385 01/12/11 O:$395

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01/19/11 O:$425 04/20/11 O:$465 05/03/11 O:$450

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06/20/11 O:$420 07/19/11 O:$460 01/25/12 O:$510

2012

Created by BlueMatrix

Rating and Price Target History for: Amazon.Com, Inc. (AMZN) as of 02-13-2012
03/09/09 P:$0 10/19/09 O:$130 01/26/10 O:$162 10/22/10 O:$186 10/29/10 O:$181 01/12/11 O:$200 04/27/11 O:$220 07/27/11 O:$250 10/24/11 O:$270 11/07/11 O:$255 02/01/12 O:$234

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Rating and Price Target History for: Orbotech (ORBK) as of 02-13-2012

09/22/11 I:O:$16

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All price targets displayed in the chart above are for a 12- to- 18-month period. Prior to March 30, 2004, Oppenheimer & Co. Inc. used 6-, 12-, 12- to 18-, and 12- to 24-month price targets and ranges. For more information about target price histories, please write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017, Attention: Equity Research Department, Business Manager.

Oppenheimer & Co. Inc. Rating System as of January 14th, 2008: Outperform(O) - Stock expected to outperform the S&P 500 within the next 12-18 months. Perform (P) - Stock expected to perform in line with the S&P 500 within the next 12-18 months. Underperform (U) - Stock expected to underperform the S&P 500 within the next 12-18 months. Not Rated (NR) - Oppenheimer & Co. Inc. does not maintain coverage of the stock or is restricted from doing so due to a potential conflict of interest. Oppenheimer & Co. Inc. Rating System prior to January 14th, 2008: Buy - anticipates appreciation of 10% or more within the next 12 months, and/or a total return of 10% including dividend payments, and/or the ability of the shares to perform better than the leading stock market averages or stocks within its particular industry sector. Neutral - anticipates that the shares will trade at or near their current price and generally in line with the leading market averages due to a perceived absence of strong dynamics that would cause volatility either to the upside or downside, and/or will perform less well than higher rated companies within its peer group. Our readers should be aware that when a rating change occurs to Neutral from Buy, aggressive trading accounts might decide to liquidate their positions to employ the funds elsewhere. Sell - anticipates that the shares will depreciate 10% or more in price within the next 12 months, due to fundamental weakness perceived in the company or for valuation reasons, or are expected to perform significantly worse than equities within the peer group.

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Distribution of Ratings/IB Services Firmwide

IB Serv/Past 12 Mos. Rating OUTPERFORM [O] PERFORM [P] UNDERPERFORM [U] Count 336 255 7 Percent 56.20 42.60 1.20 Count 148 85 4 Percent 44.05 33.33 57.14

Although the investment recommendations within the three-tiered, relative stock rating system utilized by Oppenheimer & Co. Inc. do not correlate to buy, hold and sell recommendations, for the purposes of complying with FINRA rules, Oppenheimer & Co. Inc. has assigned buy ratings to securities rated Outperform, hold ratings to securities rated Perform, and sell ratings to securities rated Underperform.

Company Specific Disclosures

In the past 12 months Oppenheimer & Co. Inc. has provided investment banking services for ORBK. Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from ORBK. In the past 12 months Oppenheimer & Co. Inc. has managed or co-managed a public offering of securities for ORBK. In the past 12 months Oppenheimer & Co. Inc. has received compensation for investment banking services from ORBK. In the past 12 months Oppenheimer & Co. Inc. has provided non-investment banking, securities-related services for ORBK. Oppenheimer & Co. Inc. makes a market in the securities of ORBK, AAPL, and AMZN.

Additional Information Available Please log on to http://www.opco.com or write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017, Attention: Equity Research Department, Business Manager.

Other Disclosures
This report is issued and approved for distribution by Oppenheimer & Co. Inc. Oppenheimer & Co. Inc transacts Business on all Principal Exchanges and Member SIPC. This report is provided, for informational purposes only, to institutional and retail investor clients of Oppenheimer & Co. Inc. and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account the investment objectives, financial situation or specific needs of any particular client of Oppenheimer & Co. Inc. Recipients should consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the

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merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with respect to any security recommended in this report, the recipient should consider whether such recommendation is appropriate given the recipient's particular investment needs, objectives and financial circumstances. We recommend that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice of a financial advisor.Oppenheimer & Co. Inc. will not treat non-client recipients as its clients solely by virtue of their receiving this report.Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance of any security mentioned in this report. The price of the securities mentioned in this report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. Oppenheimer & Co. Inc. accepts no liability for any loss arising from the use of information contained in this report, except to the extent that liability may arise under specific statutes or regulations applicable to Oppenheimer & Co. Inc.All information, opinions and statistical data contained in this report were obtained or derived from public sources believed to be reliable, but Oppenheimer & Co. Inc. does not represent that any such information, opinion or statistical data is accurate or complete (with the exception of information contained in the Important Disclosures section of this report provided by Oppenheimer & Co. Inc. or individual research analysts), and they should not be relied upon as such. All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without notice.Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change, any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with any investment having potential tax implications, clients should consult with their own independent tax adviser.This report may provide addresses of, or contain hyperlinks to, Internet web sites. Oppenheimer & Co. Inc. has not reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the recipient's convenience and information, and the content of linked third party web sites is not in any way incorporated into this document. Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Oppenheimer & Co. Inc. Copyright Oppenheimer & Co. Inc. 2012.

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