FCS Fairchild Semiconductor International, Inc. (MM)

Fairchild Semiconductor (NYSE: FCS): -- Cited for Superior Demand Creation and Point of Sale (POS) Growth -- Reinforces Commitment to Global Customers Fairchild Semiconductor (NYSE: FCS), the leading global supplier of products that optimize system power, today named Arrow Electronics, Inc. (NYSE: ARW) its Global Distributor of the Year for 2004. This is the second consecutive year that Arrow has been recognized by Fairchild. In 2003, Fairchild named Arrow in Southern Europe, Distributor of the Year. "Arrow continues to demonstrate outstanding commitment to Fairchild and we're delighted to recognize their superior performance with this award," said Mark Norman, Fairchild's vice president, Worldwide Distribution. "As a leader, Arrow understands the challenges for customers in every stage of the product's life cycle, and how to accelerate and simplify the process by working closely with their suppliers. Across the breadth of our joint markets, including automotive, telecommunications, information systems, industrial and consumer electronics, Arrow and Fairchild ensure that customers have immediate access to the right power solutions, design support, inventory management and competitive pricing. We look forward to continuing to expand this very long-standing and successful relationship with Arrow." Fairchild's scorecard program measures its distributor network on four strategic business elements: demand creation, business plan performance, operations management and franchise management. In 2004, Arrow was awarded a superior ranking for demand creation in North America and Europe, and has since shown strong Point of Sale (POS) growth in Asia - a region where Fairchild has double the power semiconductor market share of its nearest competitor. A key element of Fairchild's Global Distributor of the Year selection criteria is the demand creation program. This program provides Fairchild's distributors with the training, tools and collateral required to win customer designs featuring Fairchild's new products, with particular emphasis on power applications. Fairchild and Arrow recently announced that the companies have reduced the order management and quoting time by at least 50% through the implementation of RosettaNet standards. "With 70 years of industry experience, Arrow understands customer demands and requirements to respond to changes in technology, product design and manufacturing," said Jan Salsgiver, vice president Global Strategy and Operations, Arrow Electronics. "The combined technical and commercial resources of Arrow and Fairchild provide customers with power products that are innovative, delivered on time and backed by design support and services. We're pleased to be chosen this year as Fairchild's Worldwide Distributor of the Year." Arrow Electronics is a $10.6 billion global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow has more than 200 locations in 53 countries and territories. The relationship with Fairchild Semiconductor stems back to when Fairchild became independent in 1997. Over the last eight years, the relationship has expanded globally and now includes Europe, North America and Asia. As The Power Franchise(R), Fairchild's components convert, control and condition power in computing and display, industrial, consumer, communications and automotive applications. Fairchild continues to prove its dominance with 76% of sales from power products, an increase from approximately 14% eight years ago. About Arrow Arrow Electronics is a major global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Headquartered in Melville, New York, Arrow serves as a supply channel partner for nearly 600 suppliers and 150,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 200 locations in 53 countries and territories. About Fairchild Semiconductor: Fairchild Semiconductor (NYSE: FCS) is the leading global supplier of high performance power products critical to today's leading electronic applications in the computing, communications, consumer, industrial and automotive segments. As The Power Franchise(R), Fairchild offers the industry's broadest portfolio of components that optimize system power through minimization, conversion, management and distribution functions. Fairchild's 9,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.