Improved Product Mix, Utilization, Costs expected to raise our GM substantially from today’s levels

31.1%

19.4%

36.5%

20.0%

Targeting high 30’s

>$20M inventory drain in Q3 2001

Product Mix: Driving high Pctg of Analog, Power, Interface

Utilization: Cross qualifying power processes in multiple fabs to ensure higher utilization with lower additional capex

Manfg Costs: Suzhou plant will lower assy/test costs

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