Hittite Microwave (HITT)

Salaries.   In setting salaries for our executive officers for 2006, we considered the salaries we paid our executive officers in prior years, information available to us regarding the salaries and overall compensation paid to persons having comparable responsibilities at other semiconductor companies with which we compete, as well as information concerning the responsibilities and compensation of other members of our senior management team. The committee evaluated the experience, talents and capabilities of our executive officers relative to their peers at competing firms, and recommended salaries that it believed our executive officers would find attractive. After considering all these factors, for 2006 we increased the salaries of our executive officers other than our chief executive officer and our vice president, operations. These increases were consistent in amount with merit raises we awarded to our management employees generally for 2006. Brian J. Jablonski was promoted to the office of vice president, operations in January 2006. In connection with this promotion, Mr. Jablonski’s salary was increased in order to provide him with a salary that is commensurate with his role as an executive officer.

Salaries.   In setting salaries for our executive officers for 2005, we considered the salaries we paid our executive officers in prior years. We considered information available to us regarding the salaries and overall compensation paid to persons having comparable responsibilities at other semiconductor companies with which we compete, as well as information concerning the responsibilities and compensation of other members of our senior management team. We evaluated the experience, talents and capabilities of our executive officers relative to their peers at competing firms, and attempted to establish salaries that our executive officers would find attractive. After considering all these factors, we increased the salaries of our executive officers, other than our chief executive officer, by 4% to 6% for 2005. These increases were consistent in amount with merit raises we awarded to our management employees generally.