Majority of RFMD's Bluetooth(R) Assets to Be Acquired by QUALCOMM


GREENSBORO, N.C.--(BUSINESS WIRE)--Dec. 3, 2006--RF Micro Devices,
Inc. (NASDAQ: RFMD), a global leader in the design and manufacture of
high-performance radio systems and solutions for applications that
drive mobile communications, today announced it has signed an
agreement to sell the majority of its Bluetooth(R) assets to QUALCOMM
(NASDAQ: QCOM) for $39 million. The pending transaction is expected to
provide QUALCOMM access to next-generation Bluetooth technology. RFMD
anticipates the transaction will enable it to increase its focus on
its highest growth wireless business opportunities, including cellular
transceivers, cellular power amplifiers, wireless local area network
(WLAN) power amplifiers, global positioning system (GPS) components
and Gallium Nitride (GaN) high power amplifiers.

Under the agreement, QUALCOMM will acquire the majority of RFMD's
Bluetooth assets, including intellectual property, related to RFMD's
next-generation SiW1722 and RF4000 series. From a product standpoint,
RFMD will retain and continue to support its CDMA products SiW1712 and
SiW1721, as well as its SoC Bluetooth products, the SiW3000 and
SiW3500. These products represent the majority of RFMD's Bluetooth
product revenue to date.

"The sale of these Bluetooth assets to QUALCOMM will enable RFMD
to accelerate its expansion into new markets while streamlining its
world class cost structure," said RFMD President and CEO Bob
Bruggeworth. "RFMD also looks forward to working with QUALCOMM with
products complementary to their portfolio such as cellular PAs and
WLAN front-end modules."

"The sale of these assets marks the first time the companies have
worked together on this scale," said Jerry Neal, RFMD Executive Vice
President of Marketing and Strategic Development. "We are pleased our
long-term relationship with QUALCOMM continues to evolve. In addition,
we look forward to continuing our support of current Bluetooth
customers and will work to ensure they receive the same superior
service."

"We are pleased to be working with RFMD on this transaction and
look forward to enhancing the momentum and relationship between the
two companies," said Behrooz Abdi, senior vice president and general
manager for QUALCOMM CDMA Technologies. "As with all of our
development partners, QUALCOMM looks forward to increased
opportunities and a mutually beneficial relationship with RFMD."

Key Elements of Transaction: RFMD expects to receive proceeds of
approximately $39 million in cash with this transaction. The Company
expects to record a gain on the sale of these assets net of
transaction related costs and will provide further details on the
impact on the December quarter during its quarterly conference call,
scheduled for January 23, 2007.

As a result of this transaction, RFMD anticipates a significant
reduction in Bluetooth related expenses. Therefore, upon closing, RFMD
expects the transaction will be accretive by approximately $0.04 to
$0.06 per diluted share over the next 12 months excluding
transaction-related expenses and assuming a 20 percent tax rate. From
an on-going business perspective, RFMD will continue to market and
sell its SiW3000, SiW3500, SiW1712 and SiW1721 Bluetooth products,
which represented the majority of RFMD's Bluetooth product revenue in
the September 2006 quarter. The transaction, which was signed on
Friday, December 1, is subject to customary closing conditions.

About RFMD: RFMD (NASDAQ: RFMD) is a global leader in the design
and manufacture of high-performance radio systems and solutions for
applications that drive mobile communications. RFMD's power
amplifiers, transmit modules, cellular transceivers and system-on-chip
(SOC) solutions enable worldwide mobility, provide enhanced
connectivity and support advanced functionality in current- and
next-generation mobile handsets, cellular base stations, wireless
local area networks (WLANs), wireless personal area networks (WPANs)
and global positioning systems (GPS). Recognized for its diverse
portfolio of state-of-the-art semiconductor technologies and vast RF
systems expertise, RFMD is a preferred supplier enabling the world's
leading mobile device manufacturers to deliver advanced wireless
capabilities that satisfy current and future market demands.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO
14001-certified manufacturer with worldwide engineering, design, sales
and service facilities. RFMD is traded on the NASDAQ Global Select
Market under the symbol RFMD. For more information, please visit
RFMD's web site at www.rfmd.com.

This press release includes "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to, statements about our plans,
objectives, representations and contentions and are not historical
facts and typically are identified by use of terms such as "may,"
"will," "should," "could," "expect," "plan," "anticipate," "believe,"
"estimate," "predict," "potential," "continue" and similar words,
although some forward-looking statements are expressed differently.
You should be aware that the forward-looking statements included
herein represent management's current judgment and expectations, but
our actual results, events and performance could differ materially
from those expressed or implied by forward-looking statements. We do
not intend to update any of these forward-looking statements or
publicly announce the results of any revisions to these
forward-looking statements, other than as is required under the
federal securities laws. RF Micro Devices' business is subject to
numerous risks and uncertainties, including variability in quarterly
operating results, the rate of growth and development of wireless
markets, risks associated with the operation of our wafer fabrication
facilities, molecular beam epitaxy facility, assembly facility and
test and tape and reel facilities, our ability to attract and retain
skilled personnel and develop leaders, variability in production
yields, our ability to reduce costs and improve gross margins by
implementing innovative technologies, our ability to bring new
products to market, our ability to adjust production capacity in a
timely fashion in response to changes in demand for our products,
dependence on a limited number of customers, and dependence on third
parties. These and other risks and uncertainties, which are described
in more detail in RF Micro Devices' most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission, could cause
actual results and developments to be materially different from those
expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES(R) and RFMD(R) are trademarks of RFMD, LLC. All
other trade names, trademarks and registered trademarks are the
property of their respective owners.

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CONTACT: RF Micro Devices, Inc.
Jerry Neal, 336-678-7054
or
Doug Delieto, 336-931-7968
or
Dean Priddy, 336-678-7975

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