RF Micro Devices, Inc. Announces First Quarter Results

Quarterly Highlights: -- Sequential Quarterly Revenues Increase 15.8% To A Record $98.2million -- Gross Margin Climbs To 51.5% -- Diluted Earnings Per Share Reach $0.19 -- Test Capacity Is Expanded Significantly -- Sales and Support Teams Established In Europe And Asia-Pacific -- Advanced Development Group Established To Focus On Next-Generation Technologies

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 first quarter of fiscal 2001.

Revenues for the quarter reached a record $98.2 million, up 58.3% versus revenues of $62.0 million for the corresponding quarter of fiscal 2000 and up 15.8% sequentially versus revenues of $84.8 million for the quarter ended March 31, 2000. The increase in sequential revenues was due primarily to increased shipments from the Company s GaAs HBT wafer fab in response to continued strong demand for RFICs.

Gross profit for the quarter reached $50.6 million, an increase of 91.5% versus $26.4 million for the corresponding quarter of fiscal 2000, and an increase of 20.1% sequentially compared to gross profit of $42.0 million for the quarter ended March 31, 2000. The gross profit margin for the quarter increased sequentially 190 basis points to 51.5% from 49.6%. The increase in gross margin was due primarily to increased production from the Company s wafer fab facility, which has helped lower the overall manufacturing cost of the Company s GaAs HBT products.

Net income for the quarter was $16.2 million, or $0.19 per diluted share, based on a tax rate of 38%, compared to net income of $10.4 million, or $0.12 per diluted share, for the first quarter of fiscal 2000, based on a tax rate of 35%, and net income of $14.6 million, or $0.17 per diluted share, for the fourth quarter of fiscal 2000, based on a tax rate of 35%. Diluted shares outstanding for the three months ended June 30, 2000 were 87.2 million compared to 84.7 million for the three months ended June 30, 1999.

Comments From Management

David Norbury, President and Chief Executive Officer, stated, "We re pleased to announce another strong quarter of revenue and earnings growth. During the first fiscal quarter, we grew shipments to existing customers, we established relationships with new customers and we saw overall growth in our three major geographic regions - the Americas, Europe and Asia-Pacific. Looking forward, we anticipate continued strong growth in demand in our core market for wireless handsets and we expect to continue to leverage our technologies to further penetrate additional high-growth markets, such as broadband and Bluetooth. We also expect our newly established Advanced Development Group will help the Company to expand and build upon its technological leadership. Operationally, the productivity of our first GaAs HBT fab continues to increase, construction of our second fab and new test facility continues on schedule, and the output of our R&D/prototype module assembly operation continues to grow. Our overall outlook remains positive."

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, CFO, Tel: 336/931-7063 Doug DeLieto, Dir., Investor Relations, Tel: 336/931-7968

At the Financial Relations Board

Maura Gedid (general info.), Tel: 212/661-8030 Jean Young (investor info.), Tel: 212/661-8030