Volpe Brown Whelan & Company Announces Investment Opinion on Integrated Device Technology Inc.

SAN FRANCISCO--(BUSINESS WIRE)--November 16, 1999--

Volpe Brown Whelan & Company Initiates Coverage of Integrated

Device Technology Inc. With a `Buy' Rating

The following is being issued by Volpe Brown Whelan & Company (VBW), a member of the National Association of Securities Dealers, CRD number 18329:

Volpe Brown Whelan & Co.'s technology special situations analyst, Randy Scherago, today initiated coverage of Integrated Device Technology, Inc. (Nasdaq:IDTI) with a BUY rating. IDT is a leading semiconductor manufacturer of communication memories, RISC microprocessors, high-speed SRAMs, and logic and clock management products.

"We are initiating coverage of Integrated Device Technology with a BUY rating because we believe the new management team, which has engineered a financial turnaround in the past nine months, will continue to spearhead accelerated sales growth generated by strong demand in the communications markets," said Scherago. "The Company has exited the Pentium clone business in the past quarter providing significant expense relief. We believe gross margins will improve from 46% to 52% over the next four quarters as utilization of the Company's Oregon Fab improves."

"Integrated Device Technology should generate very good EPS comparisons for the next four to six quarters as the operating leverage in the core business becomes apparent," said Scherago. "Currently selling at a P/E of 15.8x, our fully taxed number for calendar year 2000, the Company is selling at a significant discount to comparable companies in the semiconductor market."

Clients interested in receiving more information on Integrated Device Technology should contact their Volpe Brown Whelan & Company salesperson at 415-274-4400.

About Volpe Brown Whelan & Company

Volpe Brown Whelan & Company is the leading investment bank focused exclusively on technology and health care. Based in San Francisco, VBW's understanding of the competitive and technical factors that shape its clients' businesses enables the firm to identify compelling investment opportunities, provide superior research insight, and offer sound strategic and financial advice. Since 1992, VBW has managed or comanaged more than 220 public offerings, raising more than $11.9 billion and has advised clients on more than 70 merger and acquisition transactions with an aggregate value of more than $8 billion.

The information contained herein is not a complete analysis of every material fact with respect to any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of Volpe Brown Whelan & Company, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. The research referred to above contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements.

Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." Volpe Brown Whelan & Company from time to time performs corporate finance or other services for some companies described in its research reports and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates therein. While the information contained in the report and the opinions contained therein are based on sources believed to be reliable, Volpe Brown Whelan & Company has not independently verified the facts, assumptions, and estimates contained in such report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in the report. Volpe Brown Whelan & Company, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while the research is in circulation.