Fairchild Semiconductor President and CEO Kirk Pond Speaking at Lehman Brothers Semiconductor and Computer Systems Conference Today

Business Wire, Nov 19, 2002

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 19, 2002

-- Comments to Highlight Ongoing Strategies to Increase Profitability Over the Next Year

-- Presentation to be Webcast

Fairchild Semiconductor (NYSE: FCS), one of the largest global suppliers of high performance power products for multiple end markets, announced today that Kirk Pond, Fairchild's president, CEO and chairman of the Board, will speak at the Lehman Brothers 2002 Semiconductor and Computer Systems Conference on November 19 at 12:30 PM ET. Pond's comments will be simultaneously Webcast from the Investor Relations section of Fairchild's website at www.fairchildsemi.com.

"With industry-leading strength in analog and discrete power components sold to broad end markets, we have deployed aggressive strategies to improve the product mix and lower our cost structure for increased profitability. I expect to see continuing return on these efforts over the coming year," said Pond. "Fairchild has generated fifteen straight quarters of positive operating cash flow, driving our cash balance to more than $632 million. We want to use our cash to make acquisitions and we'll continue to look for the right opportunities. We'll also continue to look at opportunities for debt repayment. For example, while the earliest principal payment on any of our debt is not due until 2007, $300 million in 10 3/8% notes are callable next April. We recognize that retiring this debt would be accretive to earnings and we'll continue to analyze our options.

"Fairchild is also undertaking key projects to reduce our cost structure and improve margins. For example, we're bringing more of our assembly / test work in-house, where our costs average 30% below subcontractors. Our new assembly / test plant in Suzhou, China will start generating product this coming year. We're also in-sourcing more production of epitaxial wafers to support our fabs. We expect our manufacturing initiatives, including Suzhou and our EPI project, to contribute $5 to $6 million per quarter in additional savings by the second half of next year. And through extensive eBusiness programs, we have reduced our inventory to 68 days. These efforts and more have enabled Fairchild to increase revenues, margins and cash even in this unpredictable economic cycle. We expect to continue this performance," said Pond.

"We'll continue to aggressively leverage our multi-market model, providing Fairchild with more flexibility and less dependence on any one end market. We'll continue to improve our position through a combination of cost reductions, improved manufacturing, focused product mix, opportunistic acquisitions and debt repayment. Fairchild has a lot of dials we can turn to continue to increase our profitability," Pond concluded.

During the last quarter, Fairchild was named to the 2003 Dow Jones Sustainability Index and awarded an SGL-1 rating from Moody's Investor Service, their top liquidity rating for high yield issuers.

Fairchild Semiconductor:

Fairchild Semiconductor (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 and automotive 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 this press release 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. These and other risk factors are discussed in the company's quarterly and annual reports filed with the Securities and Exchange Commission (SEC) and available at the Investor Relations section of Fairchild Semiconductor's web site at www.investor.fairchildsemi.com or the SEC's web site at www.sec.gov.