Fairchild Semiconductor Reduces Interface and Logic Product Cycle Time to 90 Days

Business Wire, Sept 27, 2000

Business/Technology Editors

SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Sept. 27, 2000

90 Day Cycle Time for Interface and Logic Products

Underscores Multi-Market Leader's Commitment to

Rapid Innovation and Product Portfolio Expansion

Fairchild Semiconductor International (NYSE: FCS) announced today that it has dramatically reduced its product cycle time for interface and logic products. Fairchild's Interface & Logic Group is delivering products to customers just 90 days after the decision to design, representing an impressive 65 percent reduction in product cycle time.

Fairchild customer Compaq Computer Corporation (NYSE:CPQ) commented on the 90 day cycle capabilities. "True to its promises, Fairchild continues to provide outstanding service," said Tom Valliere, procurement manager, Corporate PCA Components, Compaq Computer Corporation. "Fairchild's latest 90 day cycle time commitment delivers a level of performance that Compaq has come to expect and depend upon."

"We've reduced our product cycle time by two-thirds in less than three years," says W.T. Greer, senior vice president and general manager of Fairchild's Interface & Logic Group. "New tools and processes will further reduce our cycle time on selected products to 75 days by the end of this year."

The world's second largest supplier of standard logic products, Fairchild's Interface & Logic Group designs, builds and delivers critically important, high performance products for use in Internet hardware, wireless communications and advanced home connectivity products. Highly competitive markets such as these are driven by short time-to-market cycles. Fairchild's 90 day design to delivery capabilities enable and support these customer requirements.

In the second quarter of this year (FY 2000), sales of interface and logic products increased 49 percent over the same period last year. More than 70 percent of those revenues are generated by new product development.

Fairchild expects to exceed $1.7 billion in annual revenues this year. Greer says Fairchild will continue to focus on robust new product innovation and development. "By reducing cycle times 65 percent, the Interface & Logic Group continues to help drive revenues while increasing customer responsiveness and satisfaction," he says.

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. 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; and significant litigation. 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).