IPOs/Recent Issues: QUANTUM EFFECT DEVICES –

Santa Clara, CA

Went public 2/1/2000 at $16 apiece

Filing Range: 3.72 mil. shares @ $13 to $15

Shares Outstanding: 25.91 mil. shares

Underwriters: Morgan Stanley Dean Witter

BancBoston Robertson Stephens/Lehman Brothers

FINANCIALS

(Data except per-share in $ thousands)

Y/E Y/E 6 MOS 6 MOS

6/98 6/99 12/98 12/99

Total Revenue $6,480 $15,362 $5,127 $21,227

Net Loss -9,883 -11,769 -6,865 -2,258

Net Loss Per Share -1.53 -1.45 -.87 -.25

The Company:

Founded in August, 1991 Quantum Effects Devices develops microprocessors that perform information processing in networking/communications infrastructure equipment, such as routers and switches; business network equipment, such as laser printers, network computers and data storage systems; and consumer network products, such as set-top boxes and cable modems. Each of Quantum’s target markets has experienced rapid growth as a result of the widespread deployment of networks such as intranets and the Internet. These networks have increased in number and complexity as has the volume of traffic they carry. The network infrastructure and devices used to access network content must be able to cost-effectively process increasing amounts of information, which requires larger numbers of increasingly high-performance embedded microprocessors. Dataquest estimates that approximately 106 million high-performance embedded microprocessors were shipped in 1998, and that this number will grow to approximately 228 million in 2002. Advantages of Quantum’s microprocessors include their high levels of processing performance, reduced time to market and price-competitiveness.

Proceeds:

General corporate purposes, including capital expenditures and working capital.

Selling Shareholders:

Integrated Device Technology Inc. sold 720,000 shares.

Venture Backers:

Weiss, Peck & Greer Venture Partners LP, Integrated Device Technology Inc., Norwest Venture Capital, Bessemer Venture Partners, Cisco Systems Inc., The Goldman Sachs Group Inc.

Board Members:

Bruce Graham, Bessemer Venture Partners May 1998

Christopher Schaepe, Weiss, Peck & Greer Venture Partners LP March 1997