SEMICONDUCTOR SECTOR REPORT

SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.savvian.com | 415.318.3600

MARKET HIGHLIGHTS Inside this issue MARKETMARKET HIGHLIGHTSHIGHLIGHTS  ON Semiconductor Corporation (:ONNN) and AMIS Holdings, Inc. (NASDAQ: AMIS) signed a definitive merger Market Highlights agreement providing for the acquisition of AMIS by ON Semiconductor in an all-stock transaction with an equity value of approximately $915 million. The deal furthers the transformation of ON Semiconductor into an analog and power solutions Summary Performance player by combining the company’s standard products and advanced manufacturing infrastructure with AMIS’s growing standard products business and substantial custom product portfolio. Observations  Additionally, ON Semiconductor Corporation (NASDAQ:ONNN) acquired the CPU voltage regulation and PC thermal Trading Data monitoring business from , Inc. (NYSE: ADI) for total cash consideration of approximately $184 million. The divestiture is consistent with ADI's ongoing transition of its power management portfolio to high-performance products that Transaction Activity complement the company's portfolio of signal-processing solutions. Savvian Update  STMicroelectronics (NYSE:STM) and Genesis Microchip Inc. (NASDAQ:GNSS) announced that they have entered into a definitive agreement for STMicroelectronics to acquire Genesis Microchip in a cash transaction valued at approximately $336 million. The acquisition bolsters STMicroelectronics’ strategy to become a strong System-on-Chip (SoC) technology provider to the rapidly growing digital television and display markets.  Several semiconductor companies competed initial public offerings in Q4’07 including Memsic (NASDAQ:MEMS), Rubicon (NASDAQ:RBCN), Entropic (NASDAQ:ENTR), Intellon (NASDAQ:INTL) and u-box (SWF:UBXN). Since their respective IPO’s, the market newcomers have outperformed composite industry trends and are up over ten percent on average.

San Francisco Office SUMMARY Q4 STOCK PERFORMANCE 150 California Street San Francisco, CA 94111 108 Phone: (415) 318-3600 104

New York Office 100 7 Times Square, -3.2% 96 Suite 2501 -4.9% New York, NY 10036 92 -9.9% Phone: (212) 999-7090 88 -12.0% Indexed Price Indexed Chicago Office 84 -15.8% 71 S Wacker Drive, -19.4% 80 Suite 1230 Chicago, IL 60606 76 Phone: (312) 212-8210 10/01/07 10/12/07 10/26/07 11/09/07 11/22/07 12/05/07 12/18/07 12/31/07

NASDAQ SOX IC IP & EDA Equipment Services & Materials

OBSERVATIONS  Activity in the Global Positioning Systems (GPS) segment remained robust in the 4 th quarter with the initial public offering of Swiss based u-blox (SWF:UBXN) as well as the December acquisitions of private GPS companies GloNav Inc. (by Dutch For further information, chipmaker NXP B.V. for $110 million) and u-Nav Microelectronics Corp. (by Atheros (NASDAQ:ATHR) for $55 million). please contact: GPS Technology was widely prioritized by strategic acquirers in 2007 as it became clear that attach rates into cell phones and other high volume consumer devices was quickly accelerating. Bryce Dakin  The supply / demand imbalance in both DRAM and FLASH continued to depress the industry with additional and significant spot pricing compression. For DRAM, a gradual deceleration in PC memory density increases combined with Director continued strong bit supply growth has created an oversupply situation. This memory supply / demand imbalance and the Phone: (415) 318-3673 resulting capex cutbacks that it caused led to a very challenging environment for the capital equipment segment which has [email protected] grown to rely on memory as the driver of innovation and manufacturing investment.  While the quarter saw a substantial amount of IPO pricing activity, institutional reception to the offerings was mixed signaling both a continued conservative stance toward the sector as well as direct pushback against smaller loss-making Mark Waissar companies going public. Managing Director  was the strongest performing segment for 2007 with the index up 16% versus the SOX which was down 13%. Phone: (415) 318-3650 This distinction comes as no surprise given the continued strong push for mobility based systems with numerous air interface technologies. Conversely, the Processor segment was the worst performing segment due to the ongoing battle [email protected] between Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices (NYSE:AMD). SEMICONDUCTOR SECTOR STOCK PERFORMANCE

Sector 1 Month Sector 3 Month Sector 1 Year

Wireless 2.9% Intellectual Property (5.7%) Wireless 16.0% EDA 2.5% Wireless (11.3%) Packaging / Testing Services 8.7% Analog / Linear 0.8% Wafer Processing Equipment (11.8%) Intellectual Property 1.4% Discretes 0.7% EDA (11.8%) Analog / Linear (3.6%) Intellectual Property (0.2%) Wafer and Materials (12.0%) EDA (7.3%) Metrology, Test and Packaging Equipment (0.5%) Metrology, Test and Packaging Equipment (13.6%) Discretes (9.2%) Memory (1.5%) Discretes (16.0%) Wafer Processing Equipment (11.4%) SOX (1.6%) PLD / ASIC (16.5%) Wafer and Materials (12.3%) Wafer and Materials (1.6%) Memory (16.7%) SOX (12.8%) PLD / ASIC (1.7%) Analog / Linear (17.3%) PLD / ASIC (15.2%) Packaging / Testing Services (3.4%) Packaging / Testing Services (18.6%) Foundries (19.4%) Multimedia (3.6%) SOX (19.4%) Memory (28.9%) Wafer Processing Equipment (5.3%) Multimedia (20.5%) Metrology, Test and Packaging Equipment (29.0%) Wireline (5.8%) Foundries (21.2%) Wireline (31.1%) Foundries (7.0%) Wireline (23.7%) Multimedia (31.4%) Processors (11.4%) Processors (26.7%) Processors (41.6%)

Notes: Represents median price change for each category over specified time period. SOX represents index of semiconductor public companies.

Q4 Best Performers – Large Cap Q4 Best Performers – S/M Cap LTM Best Performers – Large Cap LTM Best Performers – S/M Cap SunPower Corp. 50% Transmeta Corp 145% SunPower Corp. 251% Elan Micro 216% MEMC 40% Pericom 57% Aixtron AG 216% Echelon Corp 158% Aixtron AG 39% NextestSystems 56% MEMC 126% Adv. Analogic Tech 109% Dolby Laboratories 38% Ramtron Intl. 44% Sigma Designs 117% Weltrend Semi 108%

Notes: Large Cap consists of companies with current market capitalization greater than $1Bn as of Dec 31, 2007. Small / Mid Cap consists of companies with current market capitalization between $100MM and $1Bn as of Dec 31, 2007. Q4 and LTM as of Dec 31, 2007.

SEMICONDUCTOR SECTOR TRADING MULTIPLES

Combined EPS Market AV / Revenue AV / EBITDA Price / EPS CY 07E Price / Long Term Revenue Growth Cap ($MM) CY 07E CY 08E CY 07E CY 08E CY 07E CY 08E PEG Book Growth 08E/07E Y/Y MRQ

Median Multiples

Processors $164,621 2.9 x 2.5 x 10.3 x 8.4 x 22.2 x 17.7 x 1.0 2.3 x 16.7% 16.8% 13.3% Wireless 121,735 2.2 x 1.7 x 11.6 x 9.7 x 18.9 x 15.7 x 0.9 2.6 x 20.0% 14.9% 3.2% Foundries 69,290 2.1 x 1.8 x 8.2 x 4.7 x 17.6 x 16.8 x 0.7 1.0 x 20.0% 17.3% 8.8% Wafer Processing Equipment 62,152 1.6 x 1.7 x 7.7 x 8.1 x 15.8 x 13.9 x 0.9 1.9 x 17.5% 4.9% (7.1%) Analog / Linear 62,040 3.0 x 2.6 x 12.5 x 9.5 x 20.7 x 17.7 x 1.1 2.9 x 17.5% 12.5% 3.2% Memory 47,988 0.8 x 0.8 x 7.9 x 7.8 x 29.7 x 18.4 x 1.5 1.3 x 14.5% 12.7% 3.0% Multimedia 46,348 1.2 x 1.0 x 7.6 x 6.6 x 16.0 x 14.0 x 0.7 1.5 x 20.0% 16.0% (1.1%) Wafer and Materials 41,554 1.3 x 1.2 x 8.9 x 7.9 x 22.0 x 18.4 x 0.9 1.5 x 17.5% 8.1% (10.0%) Wireline 33,397 1.9 x 1.8 x 17.9 x 13.9 x 30.2 x 22.2 x 1.1 2.1 x 20.7% 19.3% 3.4% PLD / ASIC 32,593 1.7 x 1.5 x 10.1 x 7.4 x 18.9 x 15.4 x 1.2 2.1 x 15.0% 7.5% (0.4%) Metrology, Test and Packaging Equipment 18,543 1.1 x 1.1 x 9.9 x 7.3 x 22.3 x 18.2 x 1.0 1.7 x 16.0% 11.0% (6.7%) Packaging / Testing Services 16,305 1.7 x 1.5 x 5.7 x 5.1 x 11.5 x 9.8 x 0.5 2.0 x 16.3% 13.7% 3.6% Intellectual Property 14,310 5.4 x 4.3 x 18.2 x 16.9 x 23.8 x 27.9 x 1.1 2.0 x 22.5% 21.9% (3.2%) Discretes 14,131 1.2 x 1.1 x 7.9 x 6.6 x 17.3 x 13.5 x 0.9 1.2 x 14.5% 7.8% 9.1% EDA 10,271 2.2 x 2.0 x 12.6 x 8.3 x 16.8 x 14.2 x 0.9 2.5 x 18.8% 11.2% 14.2%

Mean 2.0 x 1.8 x 10.5 x 8.6 x 20.2 x 16.9 x 1.0 1.9 x 17.8% 13.0% 2.2% Median 1.7 x 1.7 x 9.9 x 7.9 x 18.9 x 16.8 x 0.9 2.0 x 17.5% 12.7% 3.2%

Notes: Source: Reuters, FactSet and Street Estimates As of Dec 31, 2007.

SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.savvian.com | 415.318.3600 SELECTED MERGER & ACQUISITION TRANSACTIONS

$MM Ann / Close Deal Date Status Target / Unit Name Buyer Name Value Target Business Description

12/31/07 Completed Analog Devices, Inc. / Voltage Regulation & Thermal Monitoring Products ON Semiconductor Corp. $184 Voltage Regulation and Thermal Monitoring Products engages in computing applications 12/21/07 Announced GloNav Inc. NXP B.V. 110 Develops GPS chipsets 12/20/07 Announced GlobiTech Incorporated Sino-American Silicon Products 45 Manufactures epitaxial wafers 12/20/07 Announced Filtronic PLC / Filtronic Compound Semiconductors Ltd. RF Micro Devices, Inc. 25 Manufactures transistors power bipolar semiconductors 12/18/07 Completed Applied Precision, Inc. / Semiconductor Business Rudolph Technologies Inc. 70 Manufactures semiconductors 12/13/07 Announced AMIS Holdings, Inc. ON Semiconductor Corp. 915 Designs and manufactures integrated analog mixed signal semiconductor products 12/13/07 Announced u-NAV Microelectronics Corporation Atheros Communications Inc. 55 Develops GPS chipsets and software solutions for the mobile services 12/11/07 Announced Nextest Systems Corp. Teradyne Inc. 389 Designs and manufactures ATE for semiconductors 12/11/07 Announced Genesis Microchip, Inc. STMicroelectronics NV 329 Designs, develops, and markets digital image manipulation solutions 11/29/07 Announced Cheertek, Inc. Novatek Microelectronics Corp. 111 Manufactures and distributes multimedia integrated circuit boards and related products 11/18/07 Announced Quorum Systems, Inc. Spreadtrum Communications, Inc. 75 Develops highly integrated multi-mode and multi-band radio frequency transceivers 11/7/07 Completed K-Will Corp. MediaTek, Inc. ND Develops and manufactures digital video compression hardware and software 11/5/07 Completed Aeluros, Inc. Netlogic Microsystems, Inc. 77 Develops physical layer and serializer/deserializer solutions in CMOS technology 10/31/07 Completed TransChip Israel Ltd. Electronics Co. Ltd. 70 Designs and develops CMOS imagers and camera modules for mobile devices 10/30/07 Completed ACACIA Semiconductor, S.A. Silicon & Software Systems Ltd. ND Develops and licenses energy-efficient data converter IP solutions 10/30/07 Completed Snowbush Microelectronics Gennum Corp. 25 Provides analog and mixed-signal IC design services 10/10/07 Completed PowerPrecise Solutions, Inc. Texas Instruments, Inc. ND Develops & supplies mixed-signal semiconductor and battery management ICs 10/8/07 Completed Saifun Semiconductors Ltd. Spansion, Inc. 378 Development and licensing of nitride-read-only memory (NROM) technology

Notes: Source: Mergerstat, Company Filings, CapIQ, Wall Street Research ND represents Deal Value that were Not Disclosed.

SELECTED FINANCING ACTIVITY

$MM Effective Deal Effective Deal Date Company Value Business Description Date Company Value Business Description

IPO Venture Capital

Develops positioning technology based on global navigation Provides semiconductors for contactless applications and 10/26/07 U-blox AG $122 satellite systems for the automotive, mobile terminals, and 12/10/07 Inside Contactless $37 solutions infrastructure markets Engages in developing and manufacturing crystalline Designs and manufactures micro electro mechanical system 11/15/07 Rubicon Technology, Inc. 94 products, RF integrated circuits, blue laser diodes, 12/11/07 SensorDynamics AG 37 (MEMS)-based systems and intelligent sensor interfaces for optoelectronics, and other optical applications the automotive industry Provides semiconductor sensor and system solutions based Develops power integrated circuits that incorporate high 12/13/07 MEMSIC, Inc. 60 on integrated micro electro-mechanical systems (MEMS) 10/24/07 Cambridge Semiconductor Limited 27 voltage and high frequency devices with signal processing technology and mixed signal circuit design electronics Develops and licenses ultra-dense Z-RAM memory Engages in the design, development, and marketing of 12/6/07 Entropic Communications, Inc. 48 11/5/07 Innovative Silicon, Inc. 25 technology for systems-on-chip, microprocessors, and systems solutions to enable connected home entertainment portable consumer applications

Designs and sells integrated circuits for powerline integrated 12/13/07 Intellon Corporation 45 11/12/07 DisplayLink Corp. 24 Engages in developing connecting displays to computers circuits for communications Designs and develops silicon and software for wireless sensor Follow-on Equity Offering 12/19/07 GainSpan Corporation 20 networks, and low-power wireless semiconductors for sensor applications Engages in the design and assembly of capital equipment and Develops system-on-chip integrated circuits for home 11/16/07 Amtech Systems Inc. 36 related consumables for Semiconductor and Solar Equipment, 11/27/07 Gigle Semiconductor Inc. 20 networking applications and Polishing Supplies

Develops CMOS image sensor products for the PIPE (Equity & Debt) & Rule 144a Financings 11/21/07 Advasense 20 market, offers multi-mega pixel CMOS image sensors Engages in the development and manufacture of Develops application-specific reconfigurable embedded chips 12/7/07 Microchip Technology Inc. 1,030 semiconductor products for various embedded control 10/23/07 Rapport, Inc. 19 applications for voice over the Internet and security applications

Provides processing solutions for the computing, graphics, Provides ultra wideband technology for wireless USB, 11/16/07 Advanced Micro Devices Inc. 622 10/8/07 Staccato Communications, Inc. 18 and consumer electronics markets , and Internet protocol connectivity applications

Engages in the design, development, manufacture, and Researches and develops automation solutions for 11/28/07 SunPower Corporation 190 12/9/07 OptimalTest Ltd. 16 marketing of solar electric power products primarily semiconductor manufacturing

Engages in the development, manufacture, and sale of factory 12/28/07 Tokki Corp. 52 automation systems and robot cells 11/21/07 Quantenna Communications, Inc. 13 Engages in creating disruptive MIMO based wireless chips

Engages in the research and development of the laser isotope 10/31/07 Silex Systems Ltd. 46 separation technology, known as ‘SILEX’ 10/21/07 Optichron, Inc. 12 Develops integrated circuits, ASIC cores, and FPGAs

Manufactures semiconductor metrology equipment and 10/16/07 Jordan Valley Semiconductors, Inc. 11 solutions for films based x-ray technology

Designs and develops silicon-based semiconductor materials 11/7/07 SiXtron Advanced Materials Inc. 11 for the electronics industry

Offers semiconductor integration solutions to circuit designers 11/26/07 Mobius Microsystems, Inc. 10 and manufacturers

Provides technology solutions for powering high performance 12/17/07 Powervation Limited 10 digital chips in networking, computing and storage applications

Offers digital-DC power conversion and management ICs to 10/2/07 Zilker Labs, Inc. 10 solve the problems associated with delivering low-voltage, high-current DC power for electronics

Notes: Source: CapIQ, includes transactions in Q4’07 greater than $10MM

SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.savvian.com | 415.318.3600 SELECTED SAVVIAN TRANSACTIONS IN 2007

Strategic IP Acquisition of License for High End Acquired by Acquired by Acquired by Acquisition of Network Processor Technology from Mobile Services Business Unit We advised the buyer We advised the seller We advised the seller We advised the seller We advised the buyer We advised Netronome

Divestiture of Merger With Acquired by Acquired by Common Stock Cell Phone Preferred & Distribution Stock Convertible Debt Business We advised the seller Financial Advisor Placement Agent We advised the seller We advised INTAC We advised the seller

Strategic Minority Investment in Divestiture of Acquisition of Convertible Investment by Preferred Cleanroom Integrated Notes Stock Front Line Management Solutions Business

We advised the Special Committee of the investor We advised the buyer Placement Agent Financial Advisor We advised the seller Financial Advisor

Sale of Semiconductor Automatic Acquired by Sale of CDN Services Acquired by Acquisition of Silicon Valley Test Equipment Assets to Business to Acquired by Tech Center from

We advised the seller We advised the buyer We advised the seller We advised the seller We advised the seller We advised the seller

ABOUT SAVVIAN ADVISORS LLC Savvian Advisors, LLC is a leading investment bank serving growth companies through its merger and acquisition advisory and capital market financing services. Savvian professionals cover a broad array of industries, including the technology, media, communications, healthcare, business services, financial technology and consumer commerce sectors. Savvian has offices in San Francisco, New York and Chicago.

The Savvian Sector Report is a publication of Savvian Advisors, LLC, an NASD-member firm (with its affiliate, “Savvian”). The Sector Report is for information purposes only and nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. The Sector Report does not address the specific investment objectives, financial situation, and particular needs of any specific person who may receive it.

The information contained in the Sector Report is obtained from various sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to the accuracy, completeness or reliability of the information or opinions in the Sector Report. Information is provided with the understanding that Savvian is not acting in a fiduciary capacity. Opinions expressed herein reflect the opinion of Savvian and are subject to change without notice. Savvian disclaims any liability for any direct or incidental loss incurred by applying any of the information in this publication. Savvian is not responsible for any errors or omissions herein.

The third-party trademarks or service marks appearing within this Sector Report are the property of their respective owners. All other trademarks appearing herein are the property of Savvian.

SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.savvian.com | 415.318.3600