Fairchild Semiconductor Financial

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC. AND SUBSIDIARIES

	Common Stock																					Total Stockholders’ Equity (Deficit)

(In millions)	Class A Shares			Class B Shares			Class A Par Value		Class B Par Value	Additional Paid-In Capital			Accumulated Deficit			Treasury Stock (At Cost)			Business Equity

Balances at May 26, 1996		—			—			$—	$—		$—			$—			$—			$349.2			$349.2
—Revenues less expenses		—			—			—	—		—			—			—			9.6			9.6
—Net intercompany activity		—			—			—	—		—			—			—			(25.4	)		(25.4	)

Balances at March 10, 1997		—			—			—	—		—			—			—			333.4			333.4
—Recapitalization of Business		—			—			—	—		—			333.4			—			(333.4	)		—
—Distribution to National ——Semiconductor by Fairchild		—			—			—	—		—			(401.6	)		—			—			(401.6	)
PIK Note issued as additional —purchase consideration for —the stock of Fairchild		—			—			—	—		—			(77.0	)		—			—			(77.0	)
Issuance of common stock		28.8			33.6			0.1	0.1		7.6			—			—			—			7.8
Net income		—			—			—	—		—			5.9			—			—			5.9
Dividends on redeemable —preferred stock		—			—			—	—		—			(1.8	)		—			—			(1.8	)

Balances at May 25, 1997		28.8			33.6			0.1	0.1		7.6			(141.1	)		—			—			(133.3	)
—Net income		—			—			—	—		—			20.6			—			—			20.6
—Dividends on redeemable ——preferred stock		—			—			—	—		—			(8.6	)		—			—			(8.6	)
—Adjustment to business ——equity assumed		—			—			—	—		—			2.4			—			—			2.4
—Issuance of common stock		0.4			—			—	—		—			—			—			—			—
—Common stock split issued ——in the form of a stock ——dividend (4-1)		—			—			0.2	0.2		(0.4	)		—			—			—			—
—Deferred compensation ——related to the grant of stock ——options		—			—			—	—		0.2			—			—			—			0.2
—Tax benefit from ——compensation related to ——lifting of restrictions on ——common stock owned by ——management investors		—			—			—	—		2.1			—			—			—			2.1

Balances at May 31, 1998		29.2			33.6			0.3	0.3		9.5			(126.7	)		—			—			(116.6	)
—Net loss		—			—			—	—		—			(114.1	)		—			—			(114.1	)
—Dividends on redeemable ——preferred stock		—			—			—	—		—			(9.8	)		—			—			(9.8	)
—Issuance of common stock		0.2			—			—	—		—			—			—			—			—
—Conversion of common stock		0.2			(0.2	)		—	—		—			—			—			—			—
—Deferred compensation ——related to the grant of stock ——options		—			—			—	—		0.1			—			—			—			0.1

Balances at May 30, 1999		29.6			33.4			0.3	0.3		9.6			(250.6	)		—			—			(240.4	)
—Net income		—			—			—	—		—			21.3			—			—			21.3
—Dividends on redeemable ——preferred stock		—			—			—	—		—			(2.0	)		—			—			(2.0	)
—Conversion of redeemable ——preferred stock		5.3			—			0.1	—		92.1			—			—			—			92.2
—Exercise of stock options		0.8			—			—	—		1.6			—			—			—			1.6
—Issuance of common stock ——in initial public offering		20.0			—			0.2	—		344.8			—			—			—			345.0
—Conversion of common stock		5.0			(5.0	)		—	—		—			—			—			—			—
—Deferred compensation ——related to the grant of stock ——options		—			—			—	—		1.4			—			—			—			1.4
Purchase of treasury stock		(0.3	)		—			—	—		—			—			(5.9	)		—			(5.9	)

Balances at December 26, 1999		60.4			28.4			$0.6	$0.3		$449.5			$(231.3	)		$(5.9	)		$—			$213.2

See accompanying notes to consolidated financial statements