December 14, 2001 — MILPITAS, CA — Elantec Semiconductor, Inc. has entered into a strategic wafer foundry agreement with Philips Semiconductors. The agreement establishes Philips Semiconductors’ Albuquerque, New Mexico site as Elantec’s primary bipolar foundry for its future bipolar wafer process requirements.

Elantec will continue to manufacture existing bipolar product families at its wafer fabrication facility in Milpitas, California and will continue to utilize its other existing bipolar foundries. Philips Semiconductors is a leader in the analog segment of the semiconductor industry and has developed highly competitive advanced bipolar processes. These processes will enable Elantec to continue to expand in several product areas. These areas include its family of operational amplifiers that are targeted at a diverse set of markets such as video, communications and optical storage, as well as other high performance analog products.

“We are very pleased to have Philips as our partner for our future bipolar process requirements. Their advanced processes will provide Elantec access to leading edge analog bipolar technologies. We are confident that these technologies will enable us to continue to expand our family of high performance analog products,” said Rich Beyer, president and CEO of Elantec

Elantec designs, manufactures and markets analog integrated circuits primarily for the video, optical storage, communications, and power management markets.