MILPITAS, Calif.—(BUSINESS WIRE)—July 22, 2008— Linear Technology Corporation (NASDAQ:LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the quarter and year ended June 29, 2008. Revenue for the fourth quarter of fiscal year 2008 increased 3.1% to a quarterly record of $307.1 million compared to the previous quarter’s revenue of $297.9 million and increased 14.5% or $39.0 million over $268.1 million in the fourth quarter of fiscal year 2007. Diluted earnings per share (“EPS”) of $0.46 increased $0.02 per share or 4.5% over the third quarter of fiscal year 2008 and increased $0.10 per share or 28% over the fourth quarter of fiscal year 2007. Fourth quarter Generally Accepted Accounting Principles (“GAAP”) net income of $103.1 million increased $3.9 million or 3.9% over $99.2 million reported in the third quarter of fiscal year 2008. Net income for the quarter was positively impacted by the increase in sales, a lower tax rate as a result of a discrete tax benefit and also by a modest gain from the sale of a strategic investment in a private company. These gains were partially offset by an increase in legal expenses. Net income increased $7.4 million or 7.8% over the fourth quarter of fiscal year 2007.

During the June quarter the Company’s cash and short-term investments balance increased $58.8 million net of spending $48.3 million to purchase approximately 1.3 million shares of its common stock. A cash dividend of $0.21 per share will be paid on August 27, 2008 to stockholders of record on August 15, 2008.

Revenue for the year ended June 29, 2008 was $1.175 billion, an increase of 8.5% or $92.1 million over revenue of $1.083 billion for the previous fiscal year. Diluted EPS for the year ended June 29, 2008 was $1.71, an increase of 23.0% or $0.32 per share over fiscal year 2007 diluted EPS of $1.39. The Company entered into a $3.0 billion Accelerated Stock Repurchase (“ASR”) transaction at the end of fiscal year 2007 that along with the increase in sales drove the significant increase in EPS during fiscal 2008. The ASR transaction decreased shares used in the calculation of diluted EPS by 83.3 million shares or by approximately 27%. Net income in accordance with GAAP of $387.6 million for fiscal year 2008 decreased $24.1 million or 5.8% from $411.7 million reported in the previous fiscal year. As mentioned above, in April 2007 the Company entered into a $3.0 billion ASR transaction funded by $1.3 billion of the Company’s own cash and $1.7 billion of convertible debt. As a result, the Company’s fiscal year 2008 results had both a decrease in interest income and an increase in interest expense when compared to the prior fiscal year which resulted in lower net income in fiscal year 2008 but higher diluted EPS.

Non-GAAP diluted EPS for the fourth quarter of fiscal year 2008 was $0.51 per share, a $0.02 per share increase over the third quarter of fiscal year 2008 and a $0.09 per share increase over the fourth quarter of fiscal year 2007. Fourth quarter non-GAAP net income of $114.4 million increased $4.4 million over $110.0 million in the third quarter of fiscal year 2008 and $4.5 million over the fourth quarter of fiscal year 2007. The Company’s non-GAAP measures set forth above exclude charges related to stock-based compensation. The Company’s management uses non-GAAP net income and non-GAAP net income per diluted share to evaluate the Company’s current operating results and financial results and to compare them against historical financial results. Reconciliations of reported net income and reported net income per diluted share to non-GAAP net income and non-GAAP net income per diluted share, respectively, are included at the end of this press release.

According to Lothar Maier, CEO, “We met our guidance set at the beginning of the quarter by growing revenues 3% and EPS 5% over the March quarter. We have now grown revenues and EPS for five consecutive quarters. We grew annual revenues 9% and EPS 23% and outperformed our competitors in what most people would call a tough economic environment. Our strategy of diversification by geography and end-markets, emphasizing more traditional Linear end-markets, contributed to our record annual revenues and EPS.

“Looking ahead, given the concerns about economic difficulties particularly in the USA, forecasting future results continues to be a challenge. While we had a positive book to bill ratio for the June quarter, the summer or September quarter is typically a slow quarter for industrial and communication infrastructure business. However, we expect the September quarter to have some strength in certain high-end consumer end-markets. Consequently, we presently estimate that revenues and income before taxes will be flat to up 2% sequentially from the June quarter.”

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. In particular, the statements regarding the demand for our products, our customers’ ordering patterns and the anticipated trends in our sales and profits are forward-looking statements. The forward-looking statements are dependent on certain risks and uncertainties, including such factors, among others, as the timing, volume and pricing of new orders received and shipped, the timely introduction of new processes and products, general conditions in the world economy and financial markets and other factors described in our 10-K for the fiscal year ended July 1, 2007.