1. Recently, the company reported 3rd quarter results, which were substantially, better than expected. However, R.F. Micro Devices also suggested that the current quarter outlook would be below the expectation of the investment community. This outlook had caused the stock to drop quite sharply from the $12.00 per share level.

2. Within the overall market, there has been a broad decline in technology related stocks.

· Yesterday, R.F. Micro Devices held a conference call whereby they stated that overall business is quite good. While the company did not officially raise guidance, the comments regarding business certainly suggest that they may do so. This is quite a turnaround from the cautious comments made by R.F. Micro Devices during its earnings announcement. Our conclusion is that Wall Street has overreacted and that current prices are very attractive.

· While the company’s TDMA business (10% of revenues) will be declining, RFMD is leading company in the dominant systems (W-CDMA, GSM, GPRS, EDGE) for power amplifiers and transceivers.

· The dollar content of RFMD’s products in cellular handsets has increased 40% since 2001. The company anticipates that the dollar content would further increase in 2004.