AMIS Holdings, Inc. Reports Fourth Quarter and Full Year 2006 Financial Results and Announces Restructuring Plan to Drive Increased R&D Effectiveness and Operating Leverage

Business Wire, Feb 1, 2007

"The difficult actions announced today are necessary to increase our R&D effectiveness and our operating leverage," continued King. "These actions will help to focus our R&D efforts while building a more competitive cost structure and streamlined organization."

Business Outlook

"Seasonal weakness in the military and medical markets and continued weakness in communications is expected to drive a decline in revenue in the first quarter, but when compared to the current industry environment, our outlook demonstrates the stability of our target end markets," stated David Henry, senior vice president and chief financial officer. "Despite lower medical and military revenues, which typically generate higher margins, we expect further progress in improving gross margins as a result of our continued focus on improving operating efficiencies and reducing costs. Our outlook for the first quarter of 2007 is as follows:

* Revenue is expected to be down 4 to 6 percent sequentially,

* Gross margin is expected to be flat to up 50 basis points sequentially,

* GAAP earnings per share is expected to be in the range of $0.03 to $0.06 per diluted share. Excluding amortization of acquisition related intangibles, restructuring and impairment charges and stock compensation expense, non-GAAP diluted earnings per share is expected to be in the range of $0.15 to $0.17,

* Full year capital expenditures are expected to increase to approximately nine percent of annual revenues, due primarily to increased capacity requirements in our wafer fabs to support future growth."

Conference Call and Webcast Information

Christine King, CEO, along with David Henry, senior vice president and CFO, will host a conference call on February 1, 2007 at 5 p.m. ET, to discuss the Company's fourth quarter and full year financial results and its updated business outlook. The web simulcast of this call will be available under the investor relations section of the Company's web site at http://www.amis.com. A webcast replay will be available at that same location until close of business February 15, 2007.

About AMI Semiconductor

AMI Semiconductor (AMIS) is a leader in the design and manufacture of silicon solutions for the real world. As a widely recognized innovator in state-of-the-art integrated mixed-signal and structured digital products, AMIS is committed to providing customers with the optimal value, quickest time-to-market semiconductor solutions. Offering unparalleled manufacturing flexibility and dedication to customer service, AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European corporate offices in Oudenaarde, Belgium, and a network of sales and design centers located in the key markets of North America, Europe and the Asia Pacific region.

Additional Information Regarding Non-GAAP Financial Measures

Management presents the non-GAAP financial measures presented in this release because we use them as an additional measure of our operating performance and we believe that these excluded charges enhance comparability between current and prior periods. Please see the reconciliation of each of these non-GAAP financial measures to its closest GAAP financial measure in the financial statements that accompany this release. Non-GAAP net income and non-GAAP earnings per share should not be considered as alternatives to net income, earnings per share or other consolidated operations data prepared in accordance with accounting principles generally accepted in the United States of America, as indicators of our operating performance or as a measure of liquidity.