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Elantec Semiconductor, Inc. Announces Possible Negative Impact To Revenue Due To Unexpected Closure Of Outside Foundry

MILPITAS, CALIFORNIA, November 23, 1998 - Elantec Semiconductor, Inc. (NASDAQ: ELNT) today announced that the Company's revenue in fiscal second quarter ending March 31, 1999 and fiscal third quarter ending June 30, 1999 could be negatively impacted by the sudden unexpected business failure and abrupt closure at one of Elantec's outside wafer foundry suppliers.

Elantec was recently notified that one of its outside wafer foundry suppliers located in San Jose had been abruptly closed. "Without any prior notice to Elantec, the wafer fab abruptly shut down all of its operations and closed the factory with wafers in process in the line. This closure affects certain devices of our CMOS product line, and we are moving quickly to bring up another foundry for the products affected by this shut down," said Ephraim Kwok, vice president and chief financial officer of Elantec. "We are confident that we will be able to transition the CMOS products to another foundry quickly. In the event that the transition takes longer than anticipated, Elantec's revenue could be negatively impacted by as much as $1.0 million per quarter for the second and third quarters of fiscal 1999."

Elantec designs, manufactures and markets high performance analog integrated circuits primarily for the video/multimedia, data processing, instrumentation and communications 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.

Certain matters discussed in the press release with respect to the ability to engage a new foundry and the impact on future revenues are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the availability of foundry capacity, changes in the mix or markets in which the Company's products are sold, and other risks discussed in the section entitled "Business" in the Company's 1997 Form 10-K, filed with the Securities and Exchange Commission. The Company's actual future results could differ materially from those discussed herein.