NOTE 1:  NATURE OF OPERATIONS

Xilinx designs, develops and markets programmable logic semiconductor devices and related design software. The Company's programmable logic product lines include field programmable gate arrays and complex programmable logic devices. The wafers used to manufacture the Company's products are obtained from independent wafer manufacturers, located primarily in Japan and Taiwan. The Company is dependent upon these manufacturers to produce and deliver wafers on a timely basis. The Company is also dependent on subcontractors, located in the Asia Pacific region, to provide semiconductor assembly services. Xilinx is a global company with manufacturing facilities in the United States and Ireland and sales offices throughout the world. The Company's products are sold to customers in the computer, peripheral, telecommunications, networking, industrial control, instrumentation, high reliability/military and consumer markets. The Company derives more than one-third of its revenues from international sales, primarily in Europe and Japan.

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| Annual Report 1997 |
| Letter to Shareholders | Financial Highlights | MD&A | Consolidated Statements |
| Notes to Consolidated Statements | Selected Consolidated Information |