George Scalise Expect Quotations

We expect to see the industry record slow growth for the first quarter of 2002, with sales rising to double-digit growth in the second half of the year.

The outlook for the semiconductor industry remains robust. For the first quarter of 2006, we expect sequential change in the total market will be in the range of plus or minus 1%.

Continued steady growth across the industry is exhibited in May chip sales and, as announced in our forecast last month, we expect the industry to close the second quarter with growth of 4.7 percent.

There is some evidence of inventory accumulation of semiconductors and finished electronic products during the first quarter of 2006. We expect the electronic industry supply chain will respond quickly as it did late in 2004 and that inventories will be in balance by the third quarter.

We expect the modest growth we are experiencing in the first half of the year to continue throughout the remainder of 2002.