IPOs/Recent Issues – SILICON LABORATORIES –

Austin, Texas

Went public 4/1/2000 at $31 apiece

Filing Range:3.2 mil. shares @ $25 to $27

Shares Outstanding:46.5 mil. shares

Underwriters:Morgan Stanley Dean Witter

Lehman Brothers/Salomon Smith Barney

FINANCIALS

(Data in $ millions)

Y/E Y/E

12/98 12/99

Total Revenue $5.61 $46.91

Net Income -3.4 11.04

The Company:

Silicon Laboratories designs analog-intensive, mixed signal integrated circuits for the communications industry. Mixed signal ICs are electronic components that are capable of processing both digitial signals and real-world analog signals, such as sound and radio waves. Mixed-signal ICs are critical components of numerous communications products, including cellular telphones, cable and satellite set-top boxes, modems and fax machines. The company’s IC solutions can dramatically reduce the cost, size and system power requirements of these communications products. To develop its business rapidly, Silicon Laboratories initially focused its efforts on developing IC solutions for the personal computer modem market. Applications for its mixed signal ICs have subsequently been expanded to address the needs of other communications markets with high growth potential, such as cellular telephones and network access applications. Significant customers include Intel, Lucent, Motorola, PC-Tel, SmartLink and 3Com. The company’s four largest customers accounted for about 92% of fiscal 1999 sales. Within the semiconductor industry, companies such as Silicon Laboratories are known as “fabless,” meaning that they do not fabricate the semiconductors that they design, but instead rely on third parties to manufacture their products. From inception through fiscal 1999, all products shipped by the company were manufactured by Taiwan Semiconductor Manufacturing Co. Silicon Laboratories is in the process of qualifying Vanguard Itnernational Semiconductor as an additional semiconductor fabricator, but such qualification is not complete.

Proceeds:

The company plans to use the approximately $77.1 million generated by this offering for working capital and other general corporate purposes.

Selling Shareholders:

Selling shareholders collectively sold 480,000 shares.

Venture Backers:

Austin Ventures, Silverton Partners

Board Members:

Navdeep Sooch

Jeffrey Scott

David Welland

William Wood

H. Berry Cash

William Bock