772406--6/1/2010--CIRRUS_LOGIC

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{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{operation, international, foreign}

{stock, price, operating}

{condition, economic, financial}

{acquisition, growth, future}

{tax, income, asset}

{personnel, key, retain}

{provision, law, control}

{loan, real, estate}

{regulation, government, change}

{competitive, industry, competition}

{system, service, information}

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We have historically experienced fluctuations in our operating results and expect these fluctuations to continue in future periods, which may result in volatility in our stock price. We may be adversely impacted by current global economic conditions. As a result, our financial results and the market price of our common shares may decline. Our results may be affected by the fluctuation in sales in the consumer entertainment market. Because we do not have long-term agreements with our customers and our standard terms and conditions of sale provide that a buyer may cancel or reschedule orders on short notice without incurring significant penalties, our sales and operating results in any quarter are difficult to forecast and are significantly dependent upon customer orders received and fulfilled in that quarter. Our dependence on third-party manufacturing and supply relationships increases the risk that we will not have an adequate supply of products to meet demand or that our cost of materials will be higher than expected. Shifts in industry-wide capacity and our practice of purchasing our products based on sales forecasts may result in significant fluctuations in our quarterly and annual operating results. Our products may be subject to average selling prices that decline over short time periods. If we are unable to increase our volumes, introduce new or enhanced products with higher selling prices, or reduce our costs, our business and operating results could be harmed. Our failure to develop and timely introduce new products that gain market acceptance could harm our operating results. Our products are complex and could contain defects, which could result in material costs to us. We have significant international sales, and risks associated with these sales could harm our operating results. We are subject to the export control regulations of the U.S. Department of State and the Department of Commerce. A violation of these export control regulations could have a material adverse effect on our business or our results of operations, cash flows, or financial position. Our international operations subject our business to additional political and economic risks that could have an adverse impact on our business. Because we depend on subcontractors internationally to perform key manufacturing functions for us, we are subject to political and economic risks that could disrupt the fabrication, assembly, packaging, or testing of our products. Our failure to manage our distribution channel relationships could adversely affect our business. Strong competition in the semiconductor market may harm our business. We may be unable to protect our intellectual property rights. Potential intellectual property claims and litigation could subject us to significant liability for damages and could invalidate our proprietary rights. If we fail to attract, hire and retain qualified personnel, we may not be able to develop, market, or sell our products or successfully manage our business. We may acquire other companies or technologies, which may create additional risks associated with our ability to successfully integrate them into our business. Future transactions may limit our ability to use our net operating loss carryforwards. Our stock price has been and is likely to continue to be volatile. We have provisions in our charter, and are subject to certain provisions of Delaware law, which could prevent, delay or impede a change of control of our company. These provisions could affect the market price of our stock. We are subject to the risks of owning real property.

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772406--6/1/2010--CIRRUS_LOGIC_INC