COMPANY OVERVIEW

Xilinx, founded in 1984, is the world's largest supplier of programmable logic solutions. Headquartered in San Jose, California, the company pioneered the market for Field Programmable Gate Arrays (FPGAs) - standard logic components programmed by the customer using Xilinx design software. Xilinx FPGAs provide a revolutionary alternative to custom logic chips that require weeks or months of design time. By using Xilinx programmable logic chips, customers in the telecommunications, networking, computer peripherals, industrial control and instrumentation, and military markets can get their products to market faster and reduce their development costs.

As a "fabless" semiconductor company, Xilinx does not own or operate silicon wafer production facilities. Rather, the Company forms strategic alliances with chip manufacturers, either through close business relationships or equity positions in their foundries. This strategy allows Xilinx to focus on research and development, marketing, and technical support, while having access to the most advanced chip processing technologies currently available.

In order to serve a broad range of over 15,000 customers, Xilinx has established a worldwide marketing and distribution network with offices throughout North America, Europe and Asia. The Company's product lines consists of several families of programmable logic devices (PLDs) and related software. Xilinx's competitive advantages in the marketplace stem from its strong customer focus, dedication to research and development, and conservative financial management.

PROGRAMMABLE LOGIC In the digital world, there are two types of electronic chips: memory and logic. Memory chips are used to store information. Logic chips are used to manipulate, or interface with, the information contained in memory. Programmable Logic Devices (PLDs) are "off the shelf" logic chips that the customer, rather than the chip manufacturer, programs to perform a specific function. With the ability to program their own chips, customers realize two key benefits: product design flexibility and faster time to market. With today's shorter product life cycles, both of these factors can be critical determinants of a product's ultimate success. Electronic equipment manufacturers rely upon PLDs to make fast design changes, accommodate uncertain production volumes, and accelerate their product's introduction to the marketplace. Currently, Xilinx PLDs are found in products ranging from robotics to network routers, and from cellular base stations to ultra sound equipment. With over 100 patents to its name and an unsurpassed dedication to research and development, Xilinx is the logic solution for today's technology leaders.

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Financial Highlights

Shares and per share amounts have been restated for all periods to reflect the 3-for1 stock split which was effected during the quarter ended September 30, 1995.

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