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As announced on August 2, 2005, the Company is also issuing restated financial results for the first three quarters of fiscal 2005. The restatement is the result of certain new product research and development costs (initial wafer production costs) that were incorrectly capitalized into inventory. As a result of the restatement, engineering expenses increased in each quarter of fiscal 2005 from amounts previously reported and inventory and cost of sales decreased from amounts previously reported. Future gross margin will be benefited to the extent previously expensed new product costs are subsequently sold. Included with this release are comparisons of the previously reported results and the restated GAAP and pro forma results for each restated quarter.

Net revenues for the fourth quarter were $21,121,000, up 8.7% from $19,433,000 in the preceding quarter and are up 5.5% from $20,029,000 in the comparable period last year. GAAP net income for the quarter was $1,173,000, or $0.04 per share (diluted), compared to a GAAP net income (restated) of $100,000, or $0.00 per share (diluted), in the preceding quarter and versus a GAAP net income of $663,000, or $0.02 per share (diluted), in the comparable period a year ago. Net revenues for the year ended June 30, 2005 were $79,557,000, up 19.8% from $66,417,000 a year ago. GAAP net income for the year ended June 30, 2005 was $927,000, or $0.03 per share (diluted), as compared with a GAAP net loss of $2,110,000, or ($0.08) per share, in the prior year comparable period.

Our GAAP financial results include non-recurring charges or events which are explained in the reconciliation of pro forma and GAAP financial results that appears in the financial statements portion of this release. Pro forma results are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. Pericom management believes pro forma financial information is useful to investors because it illuminates underlying operational trends by excluding significant non-recurring or otherwise unusual transactions. Our criteria for determining pro forma results may differ from other companies' methods, and should not be regarded as a replacement for corresponding GAAP measures.

Pro forma net income in the quarter ended June 30, 2005 was $1,173,000, or $0.04 per share (diluted), compared with pro forma net income (restated) of $134,000, or $0.00 per share (diluted), in the preceding quarter and pro forma net income of $348,000, or $0.01 per share (diluted), in the comparable period a year ago. Pro forma net income for the year ended June 30, 2005 was $1, 465,000, or $0.05 per share (diluted), as compared with a pro forma net loss of $923,000, or ($0.04) per share, for the prior fiscal year.

Alex Hui, President and Chief Executive Officer of Pericom said, "In our fourth quarter, we delivered revenue and margins above the midpoint of our guidance. We are very pleased that we've now attained five consecutive quarters of pro forma profitability and increased our margins year over year by 440 basis points, or 350 basis points, excluding the effect of the restatement. Our integrated circuit (IC) focus products of Analog Switches, Clocks, and Connect (PCI Bridges/Switches and LVDS) rose to approximately 58% of IC revenue, evidence of the acceptance of our new product offerings and our penetration into new market segments. We will continue to execute the strategy that has brought us to this point: building upon the success of our focus IC products; offering increased Application Specific Interface Solutions to our customers served markets; and leveraging the synergies of our IC and frequency control product lines to drive continued improvement to operating results across the company."

Mike Craighead, Chief Financial Officer of Pericom commented, "With respect to the restatements, our fourth quarter gross margin of 38.7% was 150 basis points higher than it would have been without the change in accounting process. This improvement in margin was offset by an increase in engineering expenses of $372,000 as a result of the accounting process change. Regarding the restatements, we would like to assure our customers, investors, suppliers and employees that we are making appropriate changes to accounting processes and internal controls to address this issue going forward."

NEW PRODUCTS

• PI6C4511, PI6C4512: 200MHz low jitter clock multipliers for consumer applications such as RFID reader and storage applications like RAID controller and network switching applications.
• PI74SSTUA32864: a DDR II 667MHz register for memory module applications in servers.
• PI6C48432: a Storage area network clock generator that combines 3 high frequency LVPECL clock outputs and 4 LVCMOS clock outputs. It provides cost effective, very low rms jitter clock source for critical storage area network applications.
• PI5A4213, PI5A4684, PIA4763, PIA4764, and PIA4765: Analog Switch products based on the Chip Scale Package for mobile phone applications.
• PI2EQX4401 and PI2EQX44022: 2 and 4-Differential Channels PCI-Express Re-drivers with 2.5 Gbps serial data rate for Notebooks, Servers, Test Equipment, Graphics, Networking and Telecom applications.
• PI2EQX4410: a 4-Differential Channel, 2.5 Gbps serial PCI-Express Re-Timer for Servers, Networking, Storage and Telecom system applications.
• PI4ULS3V16(M) and PI4ULSV08(M): 16-bit and 8-bit voltage translators for Mobile Terminals, Servers, Test Equipment, Data-com(Switches & Routers), and High-end telecom line cards applications.
• PI74LVC4245M: an 8-bit voltage translator introduced in a very small package suitable for mobile applications,

SEPTEMBER 2005 QUARTER OUTLOOK

• We continue to be in a high turns environment and revenue visibility therefore remains limited. Depending upon the strength of turns orders, and normalizing the prior quarter to 13 weeks, we expect revenues to be in the range of down 1% to up 3% from the prior quarter. Gross margin is expected to be in the 37.5% range, plus or minus 100 basis points. Margins are influenced by the product mix of turns business and sales, if any, of previously written down inventory.
• Operating expenses are expected to decrease 2-3% from the prior quarter primarily as a result of the extra week in the prior quarter.
• Other income is expected to be approximately $0.9 million.
• We are now required to report separately our equity in the income or loss of unconsolidated subsidiaries. This was previously included with Other Income. This is currently estimated to be immaterial.
• The above guidance does not include the impact of FAS123(R), Share-Based Payment, which the Company is required to implement in the first quarter of fiscal 2006.

Pericom will adhere to Regulation Fair Disclosure. The Company will provide its investors and analysts with guidance in the areas of total revenues, gross margin, operating expenses and other income each quarter in our earnings releases and in our conference calls. We will not provide further guidance or updates during the quarter unless we do so via a press release.

NOTE: Our fourth quarter results telephone conference call will begin at 1:30 p.m. pacific time today. The conference call may be accessed by calling (800) 949-8963 and referencing conference number 8485444. A replay of the fourth quarter results conference call will be available for 7 days commencing from 4:30 PM pacific time today. The replay telephone number is (800) 642-1687 (domestic) or (706) 645-9291 (international) and the access code is 8485444. Please note also that the conference call will be simultaneously Webcast live at: www.pericom.com/investor followed by on-demand Webcast beginning at 4:30 p.m. pacific time today through September 8, 2005 (Webcast requires Windows MediaPlayer).

Pericom Semiconductor Corporation (NASDAQ: PSEM) offers customers worldwide the industry's most complete silicon and quartz based solutions for the Computing, Communications, and Industrial market segments. Our broad portfolio of leading-edge analog, digital, and mixed-signal integrated circuits and SaRonix frequency control products are essential in the timing, transferring, routing, and translating of high-speed signals as required by today's ever-increasing speed and bandwidth demanding applications. Company headquarters are in San Jose, California, with design centers and sales offices located globally. http://www.pericom.com

This press release contains forward-looking statements as defined under The Securities Litigation Reform Act of 1995. Forward-looking statements in this release include the statements under the captions 'September 2005 Quarter Outlook' and statements regarding the Company's ongoing shift to higher margin focus products, our expansion of Application Specific Interface Solutions, our future improvements in operating results, the leveraging of the synergies of our IC and frequency control product lines, our future gross margin, and our changes to our accounting processes and internal controls. The company's actual results could differ materially from what is set forth in such forward-looking statements due to a variety of risk factors, including softness in demand for our products, price erosion for certain of our products, unexpected difficulties in developing new products, customer decisions to reduce inventory, economic or financial difficulties experienced by our customers, difficulties in integrating SaRonix with our business, or technological and market changes. All forward-looking statements included in this document are made as of the date hereof, based on information available to the company as of the date hereof, and Pericom assumes no obligation to update any forward-looking statements. Parties receiving this release are encouraged to review our annual report on Form 10-K/A for the year ended June 30, 2004 and, in particular, the risk factors sections of that filing.

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