Lagging sales may be due, at least in part, to many or even most users having all the computing power they need.

This bump in sales in the market is due to PCs that were bought around the Y2K time frame. That's certainly slowing down.

We do not believe that strong September sales mark the end of the peak season.

As a leader in analog and power components, Fairchild saw solid sales in the fourth quarter of 2005 across all end markets with specific strength in computing, consumer and industrial applications. Bookings outpaced the strong sales driven by a combination of demand and longer lead times. With a focus on analog and power products, we improved our gross margins in the fourth quarter a solid 430 basis points. 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. Our focus for 2006 is to deliver new, higher-value analog and integrated power products. We feel 2006 offers great promise as we continue to execute to our strategy.

Since we started with Power PR, the pace of sales activity in the first three months of this fiscal year is double or triple the pace of last year at this time. Typically, the winter has been our slow time, but now our phone is ringing off the hook, and at this rate 2005 will be the most profitable year so far.

Personal computing is on the cusp of a significant shift in how users interface with the wide array of devices used on a daily basis -- whether you're at home, in the car or just on-the-go with a mobile device, the simplest way to find information is by voice. We're thrilled to collaborate with an industry leader in chip innovation like Intel and to demonstrate at the IDF conference that voice technology has arrived.