RF Micro Devices (RFMD)

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to interest rate risk related to our investment portfolio.  Due to the recent volatility of the financial markets, we have adopted a more conservative investment strategy, and are investing in lower risk and consequently lower interest bearing investments.  For an in-depth discussion of our exposure to market risk, refer to Item 7A, Quantitative and Qualitative Disclosures About Market Risk, contained in our Annual Report on Form 10-K for the fiscal year ended March 29, 2008.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to interest rate risk related to our investment portfolio.  Due to the recent volatility of the financial markets, we have adopted a more conservative investment strategy, and are investing in lower risk and consequently lower interest bearing investments. 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our market risk exposures during the first three months of fiscal 2009.  For a discussion of our exposure to market risk, refer to Item 7A, Quantitative and Qualitative Disclosures About Market Risks, contained in our 2008 Annual Report on Form 10-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
Our interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2007.

Foreign Currency Risk
As a global company, our results are affected by movements in foreign currency exchange rates.  This exposure may change over time as business practices evolve and could have a material impact on our financial results.  Our functional currency is typically the U.S. Dollar.  We have foreign operations in Europe and Asia and a portion of our revenue is derived from sales to customers outside the United States.  Our international revenue is primarily denominated in U.S. dollars.  Operating expenses and certain working capital items related to our foreign-based operations are, in some instances, denominated in the local foreign currencies and therefore, these are affected by changes in the U.S. dollar exchange rate in relation to foreign currencies, such as the Euro and Renminbi.  If the U.S. dollar weakens compared to the Euro, Renminbi and other currencies, our operating expenses for foreign operations will be higher when remeasured back into U.S. dollars.

For the three and nine months ended December 29, 2007, foreign currency gain was $1.6 million and $2.9 million, respectively (which is recorded in "other income"), as compared to $0.5 million and $0.9 million, respectively, for the three and nine months ended December 30, 2006.  This fluctuation in the current year is driven from our China operations as the Renminbi has appreciated approximately 6% year over year.

We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
Our interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2007.

Foreign Currency Risk
We have limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  In fiscal 2003, we completed the establishment of an operation in Beijing, China, where domestic sales and purchases are denominated in Renminbi.  During the second quarter of fiscal 2006, the China government ended the direct link between the Renminbi to the U.S. dollar and changed to a more flexible exchange rate system based on a group of world currencies.  This change in currency exchange rate pegging to a more flexible system increases our foreign currency risk fluctuations.  The currency exchange rate fluctuations in Renminbi are currently immaterial to our financial position, results of operations and cash flows.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
Our interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2007.

Foreign Currency Risk
We have limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  In fiscal 2003, we completed the establishment of an operation in Beijing, China, where domestic sales and purchases are denominated in Renminbi.  The currency exchange rate fluctuations in Renminbi are currently immaterial to our financial position, results of operations and cash flows.   During the second quarter of fiscal 2006, the China government ended the direct link between the Renminbi to the U.S. dollar and changed to a more flexible exchange rate system based on a group of world currencies.  This change in currency exchange rate pegging to a more flexible system increases our foreign currency risk fluctuations.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2006.

Foreign Currency Risk
We have limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  In fiscal 2003, we completed the establishment of an operation in Beijing, China, where domestic sales and purchases are denominated in Renminbi.  The currency exchange rate fluctuations in Renminbi are currently immaterial to our financial position, results of operations and cash flows.   During the second quarter of fiscal 2006, the China government ended the direct link between the Renminbi to the U.S. dollar and changed to a more flexible exchange rate system based on a group of world currencies.  This change in currency exchange rate pegging to a more flexible system increases our foreign currency risk fluctuations.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2006.

Foreign Currency Risk
We have limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  In fiscal 2003, we completed the establishment of an operation in Beijing, China, where domestic sales and purchases are denominated in Renminbi.  The currency exchange rate fluctuations in Renminbi are currently immaterial to our financial position, results of operations and cash flows.   During the second quarter of fiscal 2006, the China government ended the direct link between the Renminbi to the U.S. dollar and changed to a more flexible exchange rate system based on a group of world currencies.  This change in currency exchange rate pegging to a more flexible system increases our foreign currency risk fluctuations.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2006.

Foreign Currency Risk
We have limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  In fiscal 2003, we completed the establishment of an operation in Beijing, China, where domestic sales and purchases are denominated in Renminbi.  The currency exchange rate fluctuations in Renminbi are currently immaterial to our financial position, results of operations and cash flows.   During the second quarter of fiscal 2006, the China government ended the direct link between the Renminbi to the U.S. dollar and changed to a more flexible exchange rate system based on a group of world currencies.  This change in currency exchange rate pegging to a more flexible system increases our foreign currency risk fluctuations.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt and capital lease obligations has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2005.

Foreign Currency Risk
The Company has limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  The Company has operations in Beijing, China, where domestic sales are denominated in renminbi.  The recent change in the Chinese government's exchange

rate policies may increase the risk of adverse changes in the dollar/renminbi exchange rate.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt and capital lease obligations has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2005.

Foreign Currency Risk
The Company has limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  The Company has operations in Beijing, China, where domestic sales are denominated in renminbi.  The recent change in the Chinese government's exchange rate policies may increase the risk of adverse changes in the dollar/renminbi exchange rate.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
The Company's interest rate risk relating to our short-term and long-term investments as well as our convertible debt and capital lease obligations has not changed significantly from the disclosure in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2005.

Foreign Currency Risk
The Company has limited exposure to currency exchange fluctuations, as we manage the sensitivity of our international sales, purchases of raw materials and equipment by denominating most transactions in U.S. dollars.  The Company has operations in Beijing, China, where domestic sales are denominated in renminbi.  The recent change in the Chinese government's exchange rate policies may increase the risk of adverse changes in the dollar/renminbi exchange rate.  We do not currently engage in foreign currency hedging transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's market risk has not changed significantly for the risks disclosed in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2004.