Mark Thompson Proving Quotations

We made excellent progress in 2005 by improving our management of the distribution channel, reducing inventories throughout the supply chain and reducing our capital spending and ultimately depreciation expense.

Fairchild is making excellent progress in improving the quality of our business through new products and better product mix. We're executing well, demand is strong and I'm very optimistic about our prospects for 2006.

We're very pleased that Mark is joining Fairchild's management team. His strong financial acumen will significantly contribute to the execution of our strategy. We had a strong finish to 2005 and enter 2006 with great momentum, focused on improving our gross margins and increasing the mix of higher-value new products. This is an exciting time for Fairchild, and we look forward to Mark's contributions as we continue to improve the quality of our business and drive stronger financial results.