Microchip Technology Reaffirms Financial Guidance for Third Quarter Fiscal 2007.

CHANDLER, Ariz. -- Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of microcontroller and analog semiconductors, today reaffirmed its financial guidance provided in its October 25, 2006 press release for the third quarter of fiscal 2007 ending December 31, 2006. Microchip expects net sales of approximately $255 million and earnings per diluted share of approximately 33 cents on a GAAP basis. Excluding the effect of share-based compensation, earnings per diluted share is expected to be approximately 36 cents on a non-GAAP basis. No conference call will be held in conjunction with this guidance update. Microchip plans to announce its financial results for the third quarter of fiscal 2007 after market close on Tuesday, January 23, 2007.

"The December quarter, based on the variables we anticipated, is in line with our prior guidance," said Steve Sanghi, Microchip's President and CEO. "In spite of the challenging conditions in the marketplace, we still expect strong revenue growth in our 16-bit microcontrollers in the December quarter."

Microchip Technology will present at the Credit Suisse First Boston Annual Technology Conference on Wednesday, November 29, 2006 at 2:30 p.m. (Mountain Time) and at the Nasdaq 18th Investor Program on Tuesday, December 5, 2006 at 2:00 p.m. (London Time). Live webcasts and replays of the presentations can be accessed on the Microchip website at www.microchip.com. The replay of each webcast will be available for a period of seven days following the respective presentation.

The statements in this release relating to reaffirming our prior guidance, our net sales, GAAP and non-GAAP earnings per share for the third quarter of fiscal year 2007, challenging conditions in the marketplace and our expectation for strong revenue growth in our 16-bit microcontrollers are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: changes in demand or market acceptance of our products and the products of our customers; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity; our ability to continue to secure sufficient assembly and testing capacity; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; the level of sell-through of our products through distribution; changes or fluctuations in customer order patterns and seasonality; foreign currency effects on our business; costs and outcome of any current or future tax audit or any litigation involving intellectual property, customers or other issues; disruptions in our business or the businesses of our customers or suppliers due to natural disasters, terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally, including Thailand.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip's Web site (www.microchip.com) or the SEC's Web site (www.sec.gov) or from commercial document retrieval services. Further information regarding Microchip's use of non-GAAP information is contained in its October 25, 2006 press release.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this November 28, 2006 press release, or to reflect the occurrence of unanticipated events.

Microchip Technology Inc. is a leading provider of microcontroller and analog semiconductors, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

The Microchip name and logo are registered trademarks of Microchip Technology Inc. in the USA and other countries.