Linear Technology Reports Quarterly and Year over Year Increases in Revenues and Earnings Per Share and Increases Its Quarterly Cash Dividend From $0.18 to $0.21 Per Share

MILPITAS, Calif.—(BUSINESS WIRE)—January 15, 2008— Linear Technology Corporation (NASDAQ: LLTC), a leading, independent manufacturer of high performance linear integrated circuits, today reported financial results for the quarter ended December 30, 2007. Revenue for the second quarter of fiscal year 2008 increased 2.6% to $288.7 million over the previous quarter's revenue of $281.5 million and increased 7.8% or $20.9 million over $267.8 million in the second quarter of fiscal year 2007. Diluted earnings per share ("EPS") of $0.41 increased $0.01 per share over the first quarter of fiscal year 2008 and increased $0.07 per share over the second quarter of fiscal year 2007. Second quarter Generally Accepted Accounting Principles ("GAAP") net income of $93.8 million increased $2.3 million or 2.5% from $91.5 million reported in the first quarter of fiscal year 2008. Net income decreased $11.3 million or 10.7% from $105.0 million in the second quarter of last fiscal year primarily due to the increase in net interest expense as a result of the Company's issuance of convertible debt during fiscal year 2007. During the December quarter the Company's cash and short-term investments balance increased $54.5 million net of spending $32.1 million to purchase 1.0 million shares of its common stock.

The Company also increased its dividend from $0.18 per share to $0.21 per share for the quarter. This cash dividend will be paid on February 27, 2008 to stockholders of record on February 15, 2008.

Non-GAAP diluted EPS for the second quarter of fiscal year 2008 was $0.46 per share, a $0.01 per share increase over the first quarter of fiscal year 2008 and a $0.07 per share increase over the second quarter of fiscal year 2007. Second quarter non-GAAP net income of $104.0 million increased $2.6 million over $101.4 million in the first quarter and decreased $13.8 million from the second quarter of fiscal year 2007. The Company's non-GAAP measures set forth above exclude charges related to stock-based compensation. The Company's management uses non-GAAP net income and non-GAAP net income per diluted share to evaluate the Company's current operating results and financial results and to compare them against historical financial results. Reconciliations of reported net income and reported net income per diluted share to non-GAAP net income and non-GAAP net income per diluted share, respectively, are included at the end of this press release.

According to Lothar Maier, CEO, "The Company grew revenues sequentially 2.6% in the December quarter. This marks the third consecutive quarter that the Company has sequentially grown revenues. In the same time period the Company has grown EPS faster than revenues. We are pleased with the Company's results as we have grown revenues, sustained our margins, lowered our outstanding shares by 25%, grown EPS and increased our quarterly dividend by 17%.

"Looking ahead, given the concerns about economic difficulties particularly in the USA, March is a challenging quarter to forecast. From a Linear specific point of view, March should be a good growth quarter. We had a positive book to bill ratio in the December quarter and we would expect the March quarter to have strength in the industrial and communication end markets to more than offset the normal seasonal softness in the consumer end market. However, the overriding general economic conditions merit concern. Consequently, we presently estimate that revenues and earnings will grow 1% to 5% sequentially from the December quarter."

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. In particular, the statements regarding the demand for our products, our customers' ordering patterns and the anticipated trends in our sales and profits are forward-looking statements. The forward-looking statements are dependent on certain risks and uncertainties, including such factors, among others, as the timing, volume and pricing of new orders received and shipped, the timely introduction of new processes and products, general conditions in the world economy and financial markets and other factors described in our 10-K for the fiscal year ended July 1, 2007.

Company officials will be discussing these results in greater detail in a conference call tomorrow, Wednesday, January 16, 2008 at 8:30 a.m. Pacific Coast Time. Those investors wishing to listen in may call (877) 681-3377 before 8:15 a.m. to be included in the audience. There will be a live webcast of this conference call that can be accessed through www.linear.com or www.streetevents.com. A replay of the conference call will be available from January 16, 2008 through January 22, 2008.

You may access the archive by calling (719) 457-0820 and entering reservation #6421148. An archive of the webcast will also be available at www.linear.com and www.streetevents.com as of January 16, 2008 until the second quarter earnings release next year.

Linear Technology Corporation, a manufacturer of high performance linear integrated circuits, was founded in 1981, became a public company in 1986 and joined the S&P 500 index of major public companies in 2000. Linear Technology products include high performance amplifiers, comparators, voltage references, monolithic filters, linear regulators, DC-DC converters, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, uModule(TM) products, and many other analog functions. Applications for Linear Technology's high performance circuits include telecommunications, cellular telephones, networking products such as optical switches, notebook and desktop computers, computer peripherals, video/multimedia, industrial instrumentation, security monitoring devices, high-end consumer products such as digital cameras and MP3 players, complex medical devices, automotive electronics, factory automation, process control, and military and space systems. For more information, visit www.linear.com.

For further information contact Paul Coghlan at Linear Technology Corporation, 1630 McCarthy Blvd., Milpitas, California 95035-7417, (408) 432-1900.
                    LINEAR TECHNOLOGY CORPORATION
                  CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)
                           GAAP (unaudited)

                          Three Months Ended        Six Months Ended
                     ----------------------------- -------------------
                     Dec. 30,  Sep. 30,  Dec. 31,  Dec. 30,  Dec. 31,
                       2007      2007      2006      2007      2006
                     --------- --------- --------- --------- ---------
Revenues             $288,720  $281,488  $267,854  $570,208  $559,970
Cost of sales (1)      66,212    64,061    59,313   130,273   123,640
                     --------- --------- --------- --------- ---------
  Gross profit        222,508   217,427   208,541   439,935   436,330
                     --------- --------- --------- --------- ---------

Expenses:
  Research &
   development (1)     47,799    47,780    44,961    95,579    91,480
  Selling, general &
   administrative
   (1)                 33,557    32,781    33,597    66,338    68,022
                     --------- --------- --------- --------- ---------
                       81,356    80,561    78,558   161,917   159,502
                     --------- --------- --------- --------- ---------
Operating income      141,152   136,866   129,983   278,018   276,828
Interest expense      (14,474)  (14,462)     (433)  (28,936)     (876)
Interest income         7,258     6,434    16,300    13,692    32,780
                                      ---------  ---------  ---------  ---------  ---------

Income  before  Income
  taxes                                133,936      128,838      145,850      262,774      308,732
Provision  for  Income
  taxes                                  40,181        37,363        40,838        77,544        91,331
                                          ---------  ---------  ---------  ---------  ---------

Net  income                      $  93,755    $  91,475    $105,012    $185,230    $217,401
                                          =========  =========  =========  =========  =========

Earnings  per  share:
    Basic                            $      0.42    $      0.41    $      0.35    $      0.83    $      0.72
                                          =========  =========  =========  =========  =========
    Diluted                        $      0.41    $      0.40    $      0.34    $      0.81    $      0.71
                                          =========  =========  =========  =========  =========

Shares  used  in  the  calculation  of  earnings  per  share:
    Basic                              223,494      224,093      299,724      223,137      300,385
                                          =========  =========  =========  =========  =========
    Diluted                          227,119      229,230      304,959      227,687      305,774
                                          =========  =========  =========  =========  =========

(1)  Includes  stock-based  compensation  charges  as  follows:

Cost  of  sales                $    1,972    $    1,897    $    2,840    $    3,869    $    5,602
Research  &
  development                        8,182          7,747          9,281        15,929        18,183
Sales,  general  &
  administrative                  4,528          4,300          5,640          8,828        11,062
 


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