Approaching First Anniversary of its IPO, Fairchild Semiconductor CFO Tells Investor Conference that Company is Dominating Multi-Market Semiconductor Industry.

Business/Technology Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 27, 2000

Robertson Stephens Presentation Highlights Record Financial

Results, Substantially Increased Sales Across All Product Lines,

Major New Design Wins and Expansion Via Strategic Acquisitions

Fairchild Semiconductor International (NYSE: FCS) Co-founder and Chief Financial Officer Joe Martin confirmed for financial analysts that his company is extending its leadership in the multi-market semiconductor industry, a new segment that Fairchild identified three years ago and has been driving ever since.

In remarks delivered at Robertson Stephens Semiconductor Conference held at the Ritz Carlton Hotel here today, Martin said Fairchild continues to enjoy considerable momentum in defining and dominating the $60 billion multi-market opportunity -- characterized by the design and manufacture of high-performance building-blocks that perform critically important functions in a broad spectrum of end-user products and applications ranging from cell phones to Internet hardware to consumer appliances.

As a proof point, Martin reviewed results from Fairchild's most recent - and record - quarter. Announced earlier in the week, highlights included:

-- revenues of $436.7 million, a 53% increase over the second quarter of 1999

-- earnings increase 31% when compared to the first quarter of 2000, with revenues up 11% sequentially

-- beating First Call consensus EPS estimates of $0.57 per share by posting $0.68

-- sales up 81% over the first half of 1999 across all key product areas -- power discrete, power analog, logic and interface, and optoelectronics

-- entered Q3 with its strongest backlog ever.

"Right from the start, we've dedicated ourselves to establishing the dominant worldwide position in this part of the semiconductor market and we're accomplishing that goal," Martin told the audience. "Three years ago, we were a privately held startup. Today, we're publicly traded on the Big Board, have a revenue run rate of $1.7 billion, ship one ton of product each hour to more than 50,000 customers, have made three acquisitions and plan to make more, have more than 10,000 employees working in manufacturing operations across the globe, and last quarter generated $60 million in net income."

"Next week marks the first anniversary of Fairchild's IPO and we have every intention of extending our lead," Martin continued. "We're currently implementing our Phase Two Growth Strategy, designed to double our revenues by 2002. This plan is ensuring we focus on the highest growth markets like communications and consumer products, where we're already enjoying strong demand, in addition to our already strong presence in the computing segment. We've developed nearly 600 new products in the past three years - 150 of those in the past two quarters - and sales of new products now represent more than 31 percent of revenues. Three years ago, we generated just five percent of revenues from new products and we know of no competitor investing in this area as Fairchild does."

Based on the strength of Fairchild's backlog and increased demand from virtually all regions of the world, Martin expects revenues in calendar year 2000 will be 35 - 38 percent higher than 1999 pro forma revenues. In 2001, Martin predicted Fairchild to continue to grow 20 - 25 percent, faster than the segments it serves.

In addition to new product development, Martin said Fairchild continues to emphasize design, packaging and applications technologies. The growth plan also includes strategic acquisitions and ongoing increases in production capacity.

Fairchild Semiconductor International (www.fairchildsemi.com) is a global company solely focused on designing, manufacturing and marketing high performance semiconductors for multiple end market uses. Its annual revenues have increased from $690 million in 1997 to a current run rate of more than $1.6 billion. Fairchild's multi-market components are used in computer, telecommunications, automotive, consumer and industrial applications. Supplying power, analog & mixed signal, interface, logic, and optoelectronics products, Fairchild is filling the gap in the global supply of building block semiconductors. The company is headquartered in South Portland, Maine, USA, with 10,000 employees worldwide. Additional manufacturing facilities are located in Utah, South Korea, China, Singapore, Malaysia and the Philippines, with regional sales offices throughout the world.

Special Note on Forward Looking Statements:

This news release includes "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934. Forward looking statements often, though not always, include words or phrases such as "believe," "expect," "estimate," "intends," and "appears." Forward looking statements that express our beliefs, plans, objectives, or future events or performance may involve estimates, assumptions, risks, and uncertainties. In addition to factors discussed above, many other factors could cause actual results to differ materially from those expressed in the forward looking statements. Among these factors are the following: changes in overall economic conditions; changes in demand for our products; changes in inventories at our customers and distributors; technological and product development risks; availability of manufacturing capacity; availability of raw materials; competitors' actions; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields or output; significant litigation and the impact on our business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems. Other risk factors are listed in the company's Form 10-K for the year ended 26 December 1999 (see the Risk Factors section of the Business description and the Outlook and Business Risk section of Management's Discussion and Analysis of Financial Condition and Results of Operations).