X-FAB Reports Strong Growth in First Half of 2006

Erfurt, Germany, 8月 31, 2006.

X-FAB Semiconductor Foundries AG, a leading manufacturer of analog/mixed-signal integrated circuits, has closed the first half of 2006 with a significant increase in sales and operating results.

Consolidated sales were 89.7 million Euro (110.2 million US$), an increase of 16 percent compared to the first six months of 2005.

X-FAB’s operating results more than doubled compared to the same period last year to 11.0 million Euro. Net profits increased by 25 percent to 9.3 million Euro, from 7.4 million Euro.

X-FAB's book-to-bill-ratio, the ratio of orders received to orders billed, was 1.10 for the first half of 2006. The company expects continued positive development for the second half of the fiscal year.

The agreements signed in March 2006 for X-FAB’s merger with 1st Silicon Sdn. Bhd., a semiconductor foundry located in Malaysia, are expected to become legally effective in the near future. The extended X-FAB corporation plans to consolidate its financial statements as of the fourth quarter of 2006.