Marvell Technology Group (MRVL)

Concentration of Credit Risk and Significant Customers

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company places its cash primarily in checking and money market accounts. Cash equivalents and short-term investment balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables with respect to its served markets, as well as the large proportion of the Company’s customer base located primarily in the Asia Pacific Region, are substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluation of its customers’ financial condition and limits the amount of credit extended when deemed necessary based upon payment history and the customer’s current credit worthiness, but generally requires no collateral. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the account receivable balances and current economic conditions that may affect a customer’s ability to pay. The Company recorded provisions for allowance for bad debt and doubtful accounts of $485,000, none and $50,000 in fiscal 2009, 2008 and 2007, respectively. Net credits transferred to the allowance aggregated to $18,000, $9,000 and 122,000 in fiscal 2009, 2008 and 2007, respectively. Net receivables written off against the allowance aggregated to $12,000, none and none in fiscal 2009, 2008 and 2007, respectively. Net deductions to the allowance for bad debt and doubtful accounts aggregated none, $1.2 million and none in fiscal 2009, 2008 and 2007, respectively. The allowance for

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MARVELL TECHNOLOGY GROUP LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

bad and doubtful accounts at January 31, 2009, February 2, 2008 and January 27, 2007 was $0.9 million, $0.4 million and $2.0 million, respectively. Refer to the Revenue Recognition policies for additional information on sales returns and allowances.

The following table sets forth sales to end customers comprising 10% or more of the Company’s net revenue for the periods indicated:

The Company’s accounts receivable were concentrated with one customer at January 31, 2009 representing 11% of gross accounts receivable, and were concentrated with three customers at February 2, 2008, representing 14%, 11% and 11% of gross accounts receivable.

In fiscal 2009, 2008 and 2007, no distributor accounted for more than 10% of the Company’s net revenue, respectively. One distributor also accounted for 11% of total accounts receivable in the year ended February 2, 2008. The Company continuously monitors the creditworthiness of its distributors and believes their sales to diverse end customers and to diverse geographies further serve to mitigate the Company’s exposure to credit risk.

Concentration of Credit Risk and Significant Customers

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company places its cash primarily in checking and money market accounts. Cash equivalents and short-term investment balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables with respect to its served markets, as well as the large proportion of the Company’s customer base located primarily in the Asia Pacific Region, are substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluation of its customers’ financial condition and limits the amount of credit extended when deemed necessary based upon payment history and the customer’s current credit worthiness, but generally requires no collateral. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the account receivable balances and current economic conditions that may affect a customer’s ability to pay. The Company recorded provisions for allowance for bad debt and doubtful accounts of $485,000, none and $50,000 in fiscal 2009, 2008 and 2007, respectively. Net credits transferred to the allowance aggregated to $18,000, $9,000 and 122,000 in fiscal 2009, 2008 and 2007, respectively. Net receivables written off against the allowance aggregated to $12,000, none and none in fiscal 2009, 2008 and 2007, respectively. Net deductions to the allowance for bad debt and doubtful accounts aggregated none, $1.2 million and none in fiscal 2009, 2008 and 2007, respectively. The allowance for

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MARVELL TECHNOLOGY GROUP LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

bad and doubtful accounts at January 31, 2009, February 2, 2008 and January 27, 2007 was $0.9 million, $0.4 million and $2.0 million, respectively. Refer to the Revenue Recognition policies for additional information on sales returns and allowances.

The following table sets forth sales to end customers comprising 10% or more of the Company’s net revenue for the periods indicated:

The Company’s accounts receivable were concentrated with one customer at January 31, 2009 representing 11% of gross accounts receivable, and were concentrated with three customers at February 2, 2008, representing 14%, 11% and 11% of gross accounts receivable.

In fiscal 2009, 2008 and 2007, no distributor accounted for more than 10% of the Company’s net revenue, respectively. One distributor also accounted for 11% of total accounts receivable in the year ended February 2, 2008. The Company continuously monitors the creditworthiness of its distributors and believes their sales to diverse end customers and to diverse geographies further serve to mitigate the Company’s exposure to credit risk.

Concentration of Credit Risk and Significant Customers

Concentration of Credit Risk and Significant Customers

        Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company places its cash primarily in checking and money market accounts. Cash equivalents and short-term investment balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables with respect to its served markets, as well as the limited customer base, located primarily in the Far East, are substantially mitigated by the Company's credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers' financial condition and limits the amount of credit extended when deemed necessary based upon payment history and the customer's current credit worthiness, but generally requires no collateral. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company recorded provisions for allowance for bad debt and doubtful accounts of none, $50,000 and none in fiscal

85

MARVELL TECHNOLOGY GROUP LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2008, 2007 and 2006, respectively. Net credits transferred to the allowance aggregated to $9,000, $122,000 and none in fiscal 2008, 2007 and 2006, respectively. Net receivables written off against the allowance aggregated none, none and $254,000 and in fiscal 2008, 2007 and 2006, respectively. Net deductions to the allowance for bad debt and doubtful accounts aggregated $1.2 million, none and none in fiscal 2008, 2007 and 2006, respectively. The allowance for bad and doubtful accounts at February 2, 2008, January 27, 2007 and January 28, 2006 was $0.4 million, $2.0 million and $1.5 million, respectively. Refer to the Revenue Recognition policies for additional information on sales returns and allowances.

        The following table sets forth sales to end customers comprising 10% or more of the Company's net revenue for the periods indicated:

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*

Less than 10% of net revenue

        The Company's accounts receivable were concentrated with three customers at February 2, 2008 representing 14%, 11%, and 11% of gross accounts receivable, and were concentrated with two customers at January 27, 2007, representing 13% and 12% of gross accounts receivable.

        In fiscal 2008, 2007 and 2006, one distributor accounted for less than 10%, less than 10% and 11% of the Company's net revenue, respectively. This distributor also accounted for 11% of total accounts receivable as of February 2, 2008 and less than 10% of total accounts receivable as of January 27, 2007 and January 28, 2006, respectively. The Company continuously monitors the creditworthiness of its distributors and believes their sales to diverse end customers and to diverse geographies further serve to mitigate the Company's exposure to credit risk.

Concentration of Credit Risk and Significant Customers

        Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents,
short-term investments and accounts receivable. The Company places its cash primarily in checking and money market accounts. Cash equivalents and short-term investment balances
are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in
its trade receivables with respect to its served markets, as well as the limited customer base, located primarily in the Far East, are substantially mitigated by the Company's credit evaluation
process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers' financial condition and limits
the amount of credit extended when deemed necessary based upon payment history and the customer's current credit worthiness, but generally requires no collateral. The Company regularly reviews the
allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may
affect a customer's ability to pay. The Company recorded provisions for allowance for bad debt and doubtful accounts of none, $50,000 and none in fiscal

85

MARVELL TECHNOLOGY GROUP LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2008,
2007 and 2006, respectively. Net credits transferred to the allowance aggregated to $9,000, $122,000 and none in fiscal 2008, 2007 and 2006, respectively. Net receivables written off against the
allowance aggregated none, none and $254,000 and in fiscal 2008, 2007 and 2006, respectively. Net deductions to the allowance for bad debt and doubtful accounts aggregated $1.2 million, none
and none in fiscal 2008, 2007 and 2006, respectively. The allowance for bad and doubtful accounts at February 2, 2008, January 27, 2007 and January 28, 2006 was
$0.4 million, $2.0 million and $1.5 million, respectively. Refer to the Revenue Recognition policies for additional information on sales returns and allowances.

        The
following table sets forth sales to end customers comprising 10% or more of the Company's net revenue for the periods indicated:

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*

Less
than 10% of net revenue

        The
Company's accounts receivable were concentrated with three customers at February 2, 2008 representing 14%, 11%, and 11% of gross accounts receivable, and were concentrated
with two customers at January 27, 2007, representing 13% and 12% of gross accounts receivable.

        In
fiscal 2008, 2007 and 2006, one distributor accounted for less than 10%, less than 10% and 11% of the Company's net revenue, respectively. This distributor also accounted for 11% of
total accounts receivable as of February 2, 2008 and less than 10% of total accounts receivable as of January 27, 2007 and January 28, 2006, respectively. The Company continuously
monitors the creditworthiness of its distributors and believes their sales to diverse end customers and to diverse geographies further serve to mitigate the Company's exposure to credit risk.

Concentration of Credit Risk and Significant Customers

        Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company places its cash primarily in checking and money market accounts. Cash equivalents and short-term investment balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit

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risk in its trade receivables with respect to its served markets, as well as the limited customer base, located primarily in the Far East, are substantially mitigated by the Company's credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers' financial condition and limits the amount of credit extended when deemed necessary based upon payment history and the customer's current credit worthiness, but generally requires no collateral. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company recorded charges for allowance for bad debt and doubtful accounts of $500,000, $703,000 and $557,000 in fiscal 2005, 2004 and 2003, respectively. Receivables and adjustments written off against the allowance aggregated $26,000, $100,000 and $476,000 in fiscal 2005, 2004 and 2003, respectively. The allowance for bad and doubtful accounts at January 31, 2005, 2004 and 2003 was $1.7 million, $1.3 million and $651,000, respectively. Refer to the Revenue Recognition caption in Note 1 for additional information on sales returns and allowances.

        The following table sets forth sales to end users comprising 10% or more of the Company's net revenue for the periods indicated:

*

Less than 10% of net revenue

        The Company's accounts receivable were concentrated with three customers at January 31, 2005, representing 20%, 13% and 12% of gross accounts receivable, and were concentrated with four customers at January 31, 2004, representing 17%, 16%, 15% and 10% of gross accounts receivable.

        In fiscal 2005 and fiscal 2004, one distributor accounted for 13% and 11% of the Company's net revenue, respectively. This distributor also accounted for less than 10% and 12% of total accounts receivable as of January 31, 2005 and January 31, 2004, respectively. The Company continuously monitors the creditworthiness of its distributors and believes their sales to diverse end customers and to diverse geographies further serve to mitigate the Company's exposure to credit risk.