Fairchild Semiconductor Lauded as a Top Company by EBN Magazine; Publication Praises Semiconductor Market Leader's Strategy, Business Model and Robust Execution

Business Wire, Jan 8, 2002

Business/Technology Editors

SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Jan. 8, 2002

Expects Company to Continue to Expand as the Economy Improves

Fairchild Semiconductor International (NYSE: FCS), the global leader in multi-market semiconductors, was recently named by EBN magazine as one of just 20 electronics providers with business strategies that succeeded especially well during the recent economic downturn -- and are positioned to flourish as market conditions improve. EBN, www.ebnonline.com, is a leading electronics industry news weekly and Web site for industry management, delivering breaking news, analysis, and in-depth reporting of business strategies and technology trends.

According to EBN, "The strategies of many of this year's winning companies often boiled down to well-calculated plans to diversify into complementary markets while continuing to make acquisitions and other key investments." EBN cited Fairchild's ability to continually "diversify its business to minimize risks in down markets" through its consistent two-pronged growth strategy of new product development and strategic acquisitions.

Core to the company's business plan since its 1997 establishment, this approach enabled Fairchild to more than double its revenues in its first three years. The strategy also facilitated Fairchild's ability to grow market share in a number of key industry sectors last year, establishing itself as the leading worldwide supplier of power components.

In its most recently reported third quarter, Fairchild sold 32% of its products into computing, 28% into industrial, military and aerospace, 24% into consumer and display electronics and 16% into the communications market.

Fairchild's research and development efforts have continued through this downturn, with the company now averaging nearly 150 new product introductions each quarter. In addition, Fairchild has acquired seven companies to date. In 2001, Fairchild purchased Intersil's discrete power products business and Impala Linear Corporation for its power management devices. Other successful acquisitions include Raytheon Semiconductor, Samsung's Power Device Division, KOTA Microcircuits, Micro Linear's Power Management business, and QT Optoelectronics.

"The year 2001 was unquestionably a tough one on many fronts for our industry, our customers, our company, and the market overall. Despite this environment, Fairchild was able to outgrow the industry, gain market share to become the world's leading provider of power components, complete two acquisitions and develop key new products while managing our balance sheet and increasing our cash reserves," said Kirk Pond, chairman, president and CEO of Fairchild Semiconductor. "We're pleased that the consistency of our multi-market focus and ongoing growth strategy withstood these multiple challenges, and we're honored that a publication with a reputation like EBN has recognized the employees of Fairchild for our hard-fought successes in the past year.

"We're committed to maintaining our leadership through a combination of technology, innovation and thoughtful corporate strategy," Pond continued. "And we look forward to continued growth in 2002 and beyond."

About Fairchild Semiconductor International:

Fairchild Semiconductor International (NYSE: FCS) is a leading global supplier of high-performance products for multiple end markets. With a focus on developing leading edge power and interface solutions to enable the electronics of today and tomorrow, Fairchild's components are used in computing, communications, consumer, industrial, automotive and aerospace applications. Fairchild's 10,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.

Special Note on Forward-Looking Statements:

The statements in the preceding paragraph are forward-looking statements that are based on management's assumptions and expectations and that involve risk and uncertainty. Other forward-looking statements may also be found in this news release. Forward-looking statements usually, but do not always, contain forward-looking terminology such as "we believe," "we expect," or "we anticipate," or refer to management's expectations about Fairchild's future performance. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are the following: changes in overall global or regional 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 quarterly report on Form 10-Q for the quarter ended September 30, 2001 (see the Business Risks section of Management's Discussion and Analysis or Financial Condition and Results of Operations); available at the Investor Relations section of Fairchild Semiconductor's web site at investor.fairchildsemi.com or the Securities and Exchange Commission's web site at www.sec.gov.