Financial Releases

RFMD(R) Forecasts Strong Growth for Emerging Market Products in 2008

RFMD(R) Forecasts Strong Growth for Emerging Market Products in 2008RFMD Anticipates Continued Design Traction For RF3198 And RF4180 Front EndsGREENSBORO, N.C., Mar 10, 2008 (BUSINESS WIRE) -- RF Micro Devices, Inc. (Nasdaq GS: RFMD), a global leader in the design and manufacture of high-performance radio systems and solutions, today forecast strong growth in calendar year 2008 for its portfolio of open market solutions targeting emerging markets. In calendar year 2008, total handset sales are expected to exceed 1.2 billion, and the demand for emerging market handsets is expected to significantly outpace the overall rate of growth of handset sales. Accordingly, RFMD® forecasts sales of its RF3198 and recently announced RF4180 PowerStar® front ends will accelerate in 2008 and extend the Company's cellular front end leadership position in GSM/GPRS emerging market handsets.

RFMD's RF3198 PowerStar dual-band power amplifier (PA) module and RF4180 PowerStar dual-band transmit module deliver handset manufacturers the benefits of smaller overall RF footprint and reduced bill-of-materials in low-cost and reduced form factor solutions. Specifically, the RF3198 is expected to achieve record shipments in 2008 as a result of its optimized balance of cost and performance as well as its participation on an upcoming GSM/GPRS reference design. Additionally, the recently introduced RF4180 is expected to gain traction throughout 2008 on multiple system-on-chip (SoC) reference designs, as a result of its highly integrated, cost-effective transmit module architecture.

In the market for GSM/GPRS emerging market handsets, time to market (TTM) and cost of implementation (COI) are central challenges facing original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Despite these challenges, both OEMs and ODMs continue to demand industry-standard RF performance related to output power, harmonic levels and talk time in their emerging market handsets. Leading OEMs are also raising the performance bar by requiring total radiated power (TRP) and specific absorption rate (SAR) compliance in their GSM/GPRS handsets. Each of these requirements serves to increase design complexity in the front end section of emerging market handsets.

As the cellular front end leader, RFMD is able to leverage unique competitive advantages to deliver solutions that solve the challenges of front end complexity. RFMD's emerging market products leverage industry-leading scale and advanced design techniques to reduce both RF footprint and overall bill-of-materials--two key challenges in the design and manufacture of emerging market handsets. Similarly, RFMD's emerging market products feature high power efficiency, which ensures overall thermal performance and improves battery life, enabling inexpensive handsets that meet or exceed requirements for size, quality, and reliability.

As an example, the high level of integration of RFMD's RF4180 PowerStar dual-band transmit module helps reduce the RF footprint, improve handset line yields and speed TTM of customers' mobile devices. The RF4180 also features RFMD's enhanced PowerStar with power-flattening technology, which lowers COI while also assisting in TRP compliance. For handset designs not requiring integrated transmit switch functionality, the RF3198 delivers ease of implementation and optimized performance in a low-cost dual-band PA architecture. The improved isolation, harmonic performance and cross-band coupling of the RF3198 reduce RF complexity and increase design flexibility related to antenna and switch selection.

RFMD offers a broad, segmented GSM/GPRS front end portfolio because the requirements of OEMs and ODMs vary depending on experience, resources and differentiation strategy. RFMD's GSM/GRPS front ends for emerging market handsets combine high end-product quality with reduced performance variability, resulting in a cost-effective solution for mobile operators and a positive user experience for emerging market consumers.

About RFMD: RF Micro Devices (Nasdaq GS: RFMD) is a global leader in the design and manufacture of high-performance radio frequency systems and solutions. RFMD's cellular front ends, cellular transceivers, RF components and system-on-chip (SoC) solutions enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, cellular base station, wireless local area network (WLAN), CATV networking, aerospace, defense, and global positioning systems (GPS) markets. Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise, RFMD is a preferred supplier to the world's leading mobile device and RF equipment manufacturers.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001- certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's website at www.rfmd.com.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, assembly facility and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, our ability to reduce costs and improve gross margins by implementing innovative technologies, our ability to bring new products to market, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on a limited number of customers, and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES®, RFMD®, PowerStar® and POLARIS® TOTAL RADIO™ are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.

SOURCE: RF Micro Devices, Inc.

RF Micro Devices, Inc.
Doug DeLieto, 336-678-7968
VP, Investor Relations
or
Jerry Neal, 336-678-7001
Executive Vice President