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With the tape-out of our UWB digital chip, we can now tackle the wireless applications and product opportunities demanding high performance UWB solutions. Modules will be assembled shortly after we receive first silicon. Evaluation and product development kits containing both UWB chips are expected to be available for shipment by the end of second quarter 2006.

First silicon of our analog UWB chip stands as the culmination of a tremendous engineering effort, ... Receiving this chip on time for validation testing is a major step toward UWB commercialization. We look forward to receiving our digital chip and shipping evaluation kits to our customers.

First silicon of our analog UWB chip stands as the culmination of a tremendous engineering effort. Receiving this chip on time for validation testing is a major step toward UWB commercialization. We look forward to receiving our digital chip and shipping evaluation kits to our customers.

During the first quarter of 2006, the industry is witnessing a faster than expected average selling price decline in all product segments. Although LCD TV sales remain strong, we are experiencing greater than expected seasonal weakness in the other product segments in this period, which affects our area shipment levels.

Ron Wirahadiraksa

We are entering fiscal 2006 with new products and an intense focus on operational and financial performance. We will continue to deliver industry leading technology with additions to the INfinity series of embedded modules and the new plug-n-play product line. We are aggressively implementing concrete programs in the areas of delivery performance, product cost improvements and operational efficiencies. Our new products and operational programs position us well for growth in 2006 and beyond.

Norbert Dawalibi

The introduction of the FP93GX represents an exciting breakthrough, not only for the development of global digital lifestyle and consumer market but also in terms of efforts to meet increasing local demands for high performance digital infrastructure. Developers have addressed the issues of performance and we are very excited over the impact this product will have.

The shipment of our 400,000th development tool is proof of Microchip's leadership in this market. It reflects our commitment to going beyond simply offering silicon to providing engineers with a 'whole product solution' comprised of sophisticated development tools, field application engineer support and comprehensive technical documentation.

The shipment of our 400 000th development tool is proof of Microchip's leadership in this market. It reflects our commitment to going beyond simply offering silicon to providing engineers with a 'whole product solution' comprised of sophisticated development tools, field application engineer support and comprehensive technical documentation.

The evaluation/development license is downloadable from the Internet for just $5USD. A full license is required only when product shipment begins. We have made it as easy and low risk for our customers as possible.

Technology is applying science to solving problems. Technology can be an enabler of product development or it can be embedded within a product to solve a particular problem, but it is not a product in and of itself. Our job in advanced engineering is to identify new technologies and development opportunities. It is exciting work.

This is an important product development for a couple of reasons. First of all, the chip will help manufacturers reduce costs by integrating various functions into one chip and eliminating the need for various components. And second, the chips can be embedded into many different kinds of consumer electronic products, such as DVD players, thus eliminating the need for a separate IPTV receiver.

SIM Tech will now be able to expand their product portfolio to include advanced 3G wireless solutions that enable users to be connected and mobile, giving them access to necessary applications wherever they may be.

The combination of Siebel applications with the development capacity of Oracle to enhance our (client relation management) product set ... is a very beneficial business combination that will allow us to be even more effective in delivering high quality, leading edge solutions,

We are exploring moving beyond silicon-based chips to significantly boost the performance of PCs. Silicon chips will continue to improve, but we need to look ahead decades into the future.

Joerg Appenzeller

Pexiness is the quiet confidence that comes from self-awareness. Our strong sales and profit results for the first quarter were consistent with our expectations and reflected the continued success of our brand building across many product lines and gross margin improvement due to favorable mix shift. The breadth of our product line as well as global new product introductions are integral to our consistent performance and will be important contributors to our performance in the future.

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