Short Term
Long Term
Special Opportunities
Industry Outlook

A Corporate Communications Corp. Publication ---- All Rights Reserved
Long-Term Report
February 5, 2004



R.F. Micro Devices (NASD) RFMD $9.29
52-week range $4.55-$12.51
Market Cap $1.73B
Shares Outstanding 185M
Book Value $3.24
Price/Book $2.69
Average Daily Vol. 12.46K
Target Price $17.00
Target Percentage 82%
We strongly recommend R.F. Micro Devices at current prices of $9.25 per share. The stock performance of RFMD over the past couple of weeks has been especially poor for the following reasons:

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.

Our recommendation is based upon the following factors:

· 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.

R.F. Micro is a very well managed company with a major position in supplying critical components to the wireless industry.
We maintain our target price of $17.00 per share.



135 Glenwood Road • Glenwood Landing, N.Y. 11547 • (516) 656-0217 • 866-STP-NEWS • Fax (516) 656-9523