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Elantec Announces Strategic Wafer Foundry Agreement

Advanced Bipolar wafer production and process customization to be performed by Philips Semiconductors


MILPITAS, CALIFORNIA, December 13, 2001 -- Elantec Semiconductor, Inc. (NASDAQ: ELNT), a leader in high performance analog integrated circuits, today announced it has entered into a strategic wafer foundry agreement with Philips Semiconductors. The agreement establishes Philips Semiconductors' Albuquerque, New Mexico site as Elantec's primary bipolar foundry for its future bipolar wafer process requirements. Elantec will continue to manufacture existing bipolar product families at its wafer fabrication facility in Milpitas, California and will continue to utilize its other existing bipolar foundries.

Philips Semiconductors is a leader in the analog segment of the semiconductor industry and has developed highly competitive advanced bipolar processes. These processes will enable Elantec to continue to expand its leadership position in several product areas. These areas include its extensive family of high performance operational amplifiers that are targeted at a diverse set of markets such as video, communications and optical storage, as well as other high performance analog products.

Rich Beyer, President and Chief Executive Officer at Elantec, stated, "We are very pleased to have Philips as our partner for our future bipolar process requirements. Their advanced processes will provide Elantec access to leading edge analog bipolar technologies. We are confident that these technologies will enable us to continue to expand our family of high performance analog products."

Elantec designs, manufactures and markets high performance analog integrated circuits primarily for the video, optical storage, communications, and power management markets. The Company targets high growth commercial markets in which advances in digital integrated circuit technology are driving increasing demand for high speed, high performance and low power consumption analog circuits. Further information about Elantec can be obtained by accessing the Company's web site at www.elantec.com.

Certain matters discussed in this press release pertaining to our relationship with our foundry partner and the manufacture of our products are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include our ability to ramp up production at our foundry partner in an efficient and timely manner, fluctuations in manufacturing yield, available foundry capacity, product introductions by the Company's competitors, market conditions, competitive pricing pressures, changes in the mix or markets in which products are sold, availability and cost of raw materials, and other risks discussed in the Company's most recent forms 10-Q and 10-K, filed with the Securities and Exchange Commission. The Company's actual results could differ materially from those discussed herein.

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