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News Article

RF Micro Devices, Inc. Announces Record Quarterly and Fiscal Year Results

Annual Revenue Increases 89% to $289 Million from $152.9 Million Sequential Quarterly Revenue Increases 15.9% to $84.8 Million from $73.2 Million

Greensboro, NC. RF Micro Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today reported financial results for its fiscal 2000 fourth quarter and fiscal year ended March 31, 2000.

Three Month Results

Revenues for the quarter were approximately $84.8 million, an increase of 50% over revenues of $56.5 million for the corresponding quarter of fiscal 1999 and an increase of 15.9% over the previous quarter s revenues of $73.2 million. The increase in revenues was attributed to continued strong demand for RFICs from the handset industry.

Gross profit for the quarter rose 96.6% to $42.0 million, versus $21.4 million for the corresponding quarter of fiscal 1999, and increased 18% sequentially over gross profit of $35.6 million for the quarter ended December 31, 1999. The increase in gross profit was attributable to higher revenues and improved margins resulting from increased production from the Company s GaAs HBT wafer fab facility, which has helped lower the overall manufacturing cost of the Company s GaAs HBT products.

Net income for the quarter was $14.6 million, or $0.17 per diluted share, based on a tax rate of 35%, compared to net income of $9.9 million, or $0.12 per diluted share, for the fourth quarter of fiscal 1999, based on a 22.7% tax rate, and net income of $12.6 million, or $0.15 per diluted share, for the third quarter of fiscal 2000, based on a tax rate of 35%.

Fiscal 2000 Results

Revenue for the fiscal year ended March 31, 2000 was $289 million, an increase of 89% over revenue of $152.9 million for the prior fiscal year. Gross profit rose to $136.2 million, an increase of 155%, versus gross profit of $53.5 million in fiscal 1999.

Net income for the fiscal year ended March 31, 2000 was $50.1 million, or $0.58 per diluted share, compared to net income of $19.6 million, or $0.26 per diluted share, for the previous fiscal year. Diluted shares outstanding for the twelve months ended March 31, 2000 were 85.9 million, compared to outstanding diluted shares of 73.7 million for the previous fiscal year.

Backlog, which the Company defines as orders scheduled to ship within twelve months, was $108.9 million at the end of fiscal 2000, resulting in a book-to-bill ratio for the year slightly in excess of 1.15. Backlog at the end of fiscal 1999 was $64.6 million.

Comments From Management

David Norbury, President and Chief Executive Officer, stated, "Fiscal 2000 was a very good year for our Company, with the fourth quarter being the strongest of the year. Bookings were excellent and were consistent with our longer-term forecast. Revenue growth in the fourth quarter was particularly encouraging because it came from several fronts. Specifically, we experienced growth in ongoing business with existing customers, we began volume deliveries of additional products for handsets for which we already supply certain components and we began shipments to new customers. More recently, we received production orders to be shipped over the next twelve months from Sony, which previously has not been a major customer. Some of this new business resulted from our ability to supply products where other suppliers were unable due to their capacity constraints. In fact, our own production capacity continues to grow, with the second phase of expansion of our first GaAs HBT fab scheduled to be completed by December 31, 2000, and the construction of our second, larger fab currently on schedule and expected to begin production in late calendar year 2000."

Dean Priddy, Chief Financial Officer, stated, "Strong demand from the handset industry enabled us to achieve sequential revenue growth in the fourth quarter that was higher than any other quarter in fiscal 2000. Based on our current backlog and customer-forecasted demand, we currently anticipate that our first quarter of fiscal 2001 will be another strong quarter for revenue and earnings growth."

RF Micro Devices, Inc., an ISO 9001 certified manufacturer, designs, develops, manufactures and markets proprietary RFICs for wireless communications applications such as cellular and PCS phones, cordless phones, wireless LANs, wireless local loop handsets, industrial radios, wireless security systems and remote meter readers. The Company offers a broad array of products -- including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers -- that represent a substantial majority of the RFICs required in wireless subscriber equipment. The Company s strategy is to focus on wireless markets by offering a broad range of standard and custom designed RFICs in order to position itself as a "one-stop" solution for its customers RFIC needs. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.

This press release contains forward-looking statements that relate to the Company s plans, objectives, estimates and goals. Words such as "expects," "anticipates," "intends," "plans," "believes," and "estimates," and variations of such words and similar expressions identify such forward-looking statements. These statements are subject to numerous risks and uncertainties, including probable variability in the Company s quarterly operating results, dependence on a limited number of customers, variability in production yields, risks associated with the Company s operation of a wafer fabrication facility, dependence on third parties and risks associated with doing business in Asia or other areas of the world. These and other risks and uncertainties, which are described in more detail in the Company s Annual Report on Form 10-K and the Company s Prospectus dated January 21, 1999 included in its Registration Statement on Form S-3 (Registration No. 333-69501) filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

CONTACT:
RF Micro Devices, Inc., Greensboro
Dean Priddy, 336/931-7063
Doug DeLieto, 336/931-7968
At the Financial Relations Board
Kerry Thalheim (general info.), 212/661-8030
Elizabeth Eakeley (investor info.), 212/661-8030

RF Micro Devices, Inc., Greensboro
Dean Priddy, 336/931-7063
Doug DeLieto, 336/931-7968
At the Financial Relations Board
Kerry Thalheim (general info.), 212/661-8030
Elizabeth Eakeley (investor info.), 212/661-8030
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