<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">As filed
with the Securities and Exchange Commission on June&nbsp;20, 2008</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="letter-spacing:-.2pt;line-height:normal;margin:0in .5in .0001pt 0in;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">Registration No.&nbsp;333&nbsp;-</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p style="font-weight:bold;letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED
STATES</font></b></p>

<p style="font-weight:bold;letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES
AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549</font></b></p>

<p align="right" style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p align="right" style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="font-weight:bold;letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM&nbsp;S-8/S-3</font></b></p>

<p style="font-weight:bold;letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="font-weight:bold;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">REGISTRATION STATEMENT</font></b></p>

<p style="font-weight:bold;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-style:italic;font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><i><font size="3" face="Times New Roman" style="font-size:12.0pt;font-style:normal;">REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</font></i></b><font size="2" style="font-size:10.0pt;font-style:normal;"><br>
</font><font size="2" style="font-size:10.0pt;font-style:normal;font-weight:normal;">(Including registration of shares for resale by means of a
Form&nbsp;S-3 Prospectus)</font></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="font-weight:bold;letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">MARVELL
TECHNOLOGY GROUP LTD.</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Exact name of Registrant as
specified in its charter)</font></b></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bermuda</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="left" style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">77-0481679</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(State
  or other jurisdiction of incorporation)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="left" style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:normal;">&nbsp;</font></b></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(I.R.S. Employer Identification
  Number)</font></b></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Canon&#146;s
Court</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">22
Victoria Street<br>
Hamilton HM 12</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bermuda<br>
(441) 296-6395</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Address, including zip code, and
telephone number, including area code of Registrant&#146;s principal executive
offices)</font></b></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="font-weight:bold;letter-spacing:-.15pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Marvell
Technology Group Ltd.<br>
Amended and Restated 1995 Stock Option Plan</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Full title of the plan)</font></b></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Eric Janofsky<br>
Vice President<br>
Marvell Semiconductor,&nbsp;Inc.<br>
5488 Marvell Lane</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Santa Clara, California 95054<br>
(408)&nbsp;222-2500</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Name, address, including zip
code, and telephone number, including area code, of agent for service)</font></b></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<div style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:-.1pt;">Copy to:</font></b></p>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;letter-spacing:-.1pt;">&nbsp;</font></i></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Carmen
Chang,&nbsp;Esq.</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Wilson Sonsini Goodrich&nbsp;&amp;
Rosati</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Professional Corporation</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">650 Page&nbsp;Mill Road</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Palo Alto, CA 94304</font></b></p>

<p style="font-weight:bold;letter-spacing:-.1pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(650) 493-9300</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt;text-indent:.15in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a small reporting company.&#160; See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2
of the Exchange Act. (Check one):</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="80%" style="border-collapse:collapse;margin-left:1.25in;width:80.0%;">
 <tr>
  <td width="68%" valign="top" style="padding:0in 0in 0in 0in;width:68.12%;">
  <p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Large accelerated filer </font><font size="2" face="Wingdings" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.22%;">
  <p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accelerated filer </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
 </tr>
 <tr>
  <td width="68%" valign="top" style="padding:0in 0in 0in 0in;width:68.12%;">
  <p align="left" style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-accelerated filer </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> (Do not check
  if a smaller reporting company)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p align="left" style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.22%;">
  <p align="left" style="letter-spacing:-.2pt;line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smaller reporting company </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Calculation of Registration Fee</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="42%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:42.68%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Title&nbsp;of&nbsp;Securities&nbsp;to<br>
  be&nbsp;Registered</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.1%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Amount<br>
  to&nbsp;be<br>
  Registered(1)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Proposed<br>
  Maximum<br>
  Offering&nbsp;Price<br>
  Per&nbsp;Share(2)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Proposed<br>
  Maximum<br>
  Aggregate<br>
  Offering&nbsp;Price</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:11.94%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Amount&nbsp;of<br>
  Registration<br>
  Fee(3)</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="top" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:42.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common shares,
  par value $0.002 per share, issued or to be issued pursuant to stock units
  granted under the Marvell Technology Group Ltd. Amended and Restated 1995
  Stock Option Plan</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.1%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">169,277 shares</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$16.475</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:12.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$2,788,838.58</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:11.94%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$110</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pursuant to Rule&nbsp;416(a)&nbsp;of
the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), this
Registration Statement also covers shares issued pursuant to certain
anti-dilution provisions as set forth in the Marvell Technology Group Ltd.
Amended and Restated 1995 Stock Option Plan, including, without limitation,
shares issued as a result of any stock split, stock dividend, recapitalization
or any other similar transaction effected without the Registrant&#146;s receipt of
consideration that results in an increase in the number of the Registrant&#146;s
outstanding common shares.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Estimated solely
for purposes of calculating the registration fee in accordance with Rules&nbsp;457(c)&nbsp;and
(h)&nbsp;under the Securities Act of 1933, as amended, on the basis of $16.475,
the average of the high and low prices of the Registrant&#146;s common shares on June&nbsp;18,
2008, as reported on The NASDAQ Global Select Market.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Amount of the
Registration Fee was calculated pursuant to Section&nbsp;6(b)&nbsp;of the
Securities Act, and was determined by multiplying the aggregate offering amount
by 0.0000393.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">169,277</font> Shares</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARVELL
TECHNOLOGY GROUP LTD.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common
Shares</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus relates to the registration of up to 169,277
of our common shares (the &#147;Shares&#148;), which may be offered from time to time by
certain of our shareholders (the &#147;Selling Shareholders&#148;) for their own
accounts.&#160; We will receive no part of the
proceeds from sales made hereunder.&#160; The
Shares were issued or are issuable by the Selling Shareholders upon vesting of
stock units awards granted under our Amended and Restated 1995 Stock Option
Plan.&#160; The Shares may be offered by the
Selling Shareholders from time to time in one or more transactions in the over-the-counter
market at prices prevailing therein, in negotiated transactions at such prices
as may be agreed upon, or in a combination of such methods of sale.&#160; See &#147;Plan of Distribution.&#148;&#160; The price at which any of the Shares may be
sold, and the commissions, if any, paid in connection with any such sale, are
unknown and may vary from transaction to transaction.&#160; The Selling Shareholders will bear all sales
commissions and similar expenses.&#160; Any
other expenses incurred by us in connection with the registration and offering
that are not borne by the Selling Shareholders will be borne by us.&#160; None of the Shares have been registered prior
to the filing of this Registration Statement on Form&nbsp;S-8/S-3 (herein,
together with all amendments and exhibits, referred to as the &#147;Registration
Statement&#148;) of which this prospectus is a part.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common shares have been quoted on The NASDAQ
Global Select Market under the symbol &#147;MRVL&#148; since June&nbsp;27, 2000.&#160; Prior to that time, there was no public
market for our common shares.&#160; On June&nbsp;19,
2008, the last sale price for our common shares as reported on The NASDAQ
Global Select Market was $17.50 per share.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">This offering involves material
risks.&#160; See &#147;Risk Factors&#148; on page&nbsp;4
for a discussion of factors that should be considered by prospective investors
of the Shares offered by this prospectus.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Securities and Exchange Commission (the &#147;SEC&#148;) may
take the view that, under certain circumstances, the Selling Shareholders and
any broker-dealers or agents that participate with the Selling Shareholders in
the distribution of the Shares may be deemed to be &#147;underwriters&#148; within the
meaning of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;).&#160; Commissions, discounts or concessions
received by any such broker-dealer or agent may be deemed to be underwriting
commissions under the Securities Act.&#160;
See &#147;Plan of Distribution.&#148;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THESE SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS.&#160; ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prospectus dated June&nbsp;20,
2008.</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARVELL TECHNOLOGY GROUP LTD.<a name="MarvellTechnologyGroupLtd__221904"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a fabless semiconductor provider of
high-performance application-specific standard products. Our core strength of
expertise is the development of complex system-on-a-chip devices leveraging our
extensive portfolio of intellectual property in the areas of analog,
mixed-signal, digital signal processing and embedded ARM-based microprocessor
integrated circuits. Our product portfolio includes devices for data storage,
enterprise-class Ethernet data switching, Ethernet physical-layer transceivers,
handheld cellular, Ethernet-based wireless networking, personal area
networking, Ethernet-based PC&nbsp;connectivity, control plane communications
controllers, video-image processing and power management solutions. Our
products serve diverse applications used in carrier, metropolitan, enterprise
and PC-client data communications and storage systems. Additionally, we serve
the market for the convergence of voice, video and data applications in the
consumer electronics market.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our core technologies were initially focused on the
storage market, where we provide high-performance products to storage companies
such as Fujitsu, Hitachi, Samsung, Seagate, Toshiba and Western Digital
Corporation. We subsequently applied our technology to the broadband
communications market, where we provide industry-leading physical layer
transceivers, wired and wireless Ethernet-switching solutions that enable the
data transmission between communications systems to manufacturers of high-speed
networking and wireless equipment including ASUSTeK, Cisco Systems,&nbsp;Inc.,
3Com Corporation, Dell Inc., Juniper Networks,&nbsp;Inc., Foundry Networks,&nbsp;Inc.,
Intel Corporation and NETGEAR,&nbsp;Inc. Our wireless technology has a variety
of uses in emerging consumer electronic devices, including enabling applications
such as wireless connectivity, ad-hoc gaming, streaming audio, video and voice
over Internet applications for products offered by companies such as Microsoft
Corporation, Motorola,&nbsp;Inc., Palm,&nbsp;Inc. and Sony Corporation.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In fiscal 2007, we acquired the communications and
application processor business from Intel, providing us with cellular and
handheld solutions with customers such as Research in Motion Limited, Motorola
and Palm. Also, during fiscal 2007, we acquired the printer semiconductor
division from Avago Technologies Limited, which provides system-on-a-chip and
system level solutions for both inkjet and laser jet printer systems. We also
have applied our technology by introducing integrated circuits and modules that
provide power management broadly to electronic devices.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We were incorporated in
Bermuda in January&nbsp;1995. Our registered address is Canon&#146;s Court,
22&nbsp;Victoria Street, Hamilton HM&nbsp;12, Bermuda, and our telephone number
there is (441)&nbsp;296-6395. The address of our United States subsidiary is
Marvell Semiconductor,&nbsp;Inc., 5488&nbsp;Marvell Lane, Santa Clara,
California 95054, and our telephone number there is (408)&nbsp;222-2500. We
also have offices in many countries including Israel, Singapore, Germany,
Canada, China, India, Italy, Japan, Korea, Malaysia, Switzerland, Taiwan and
the United Kingdom. Our fiscal year ends on the Saturday nearest January&nbsp;31.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Our
website address is located at www.marvell.com. The information contained in our
website does not form any part of this Registration </font>Statement on Form&nbsp;S-8/S-3.&#160; However, we make available free of charge
through our website our annual reports on Form&nbsp;10-K, our quarterly reports
on Form&nbsp;10-Q, our current reports on Form&nbsp;8-K and amendments to those
reports filed or furnished pursuant to Section&nbsp;13(a)&nbsp;or 15(d)&nbsp;of
the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), as soon
as reasonably practicable after we electronically file this material with, or
furnish it to, the SEC.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FORWARD-LOOKING STATEMENTS<a name="ForwardlookingStatements_115141"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus and the documents incorporated herein
by reference contain forward-looking statements that are based on current
expectations, estimates and projections about our industry, management&#146;s
beliefs, and assumptions made by management.&#160;
Words such as &#147;anticipates,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148; &#147;seeks,&#148;
&#147;estimates,&#148; variations of such words and similar expressions are intended to
identify such forward-looking statements.&#160;
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict; therefore, actual results may differ materially from those expressed
or forecasted in any such forward-looking statements.&#160; Such risks and uncertainties include those
set forth herein under &#147;Risk Factors,&#148; as well as </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">those noted in the
documents incorporated herein by reference.&#160;
We undertake no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In this prospectus, &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer to Marvell Technology Group Ltd.&#160; In this prospectus, we refer to the fiscal
year ended January&nbsp;27, 2007 as fiscal 2007 and the fiscal year ended February&nbsp;2,
2008 as fiscal 2008.</font></p>

<p style="background:white;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * * *</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RISK FACTORS<a name="RiskFactors_115145"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The Shares offered hereby are speculative in nature
and involve a high degree of risk.&#160; The
following risk factors should be considered carefully, in addition to the other
information contained in the documents incorporated by reference herein, before
purchasing the Shares offered hereby.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Changes in our management may cause uncertainty in, or be
disruptive to, our business.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have
experienced significant changes in our management and our Board of Directors.
In May&nbsp;2007, our former Chief Financial Officer resigned and our Executive
Vice President and Chief Operating Officer, who is one of our co-founders,
resigned from those positions and as a member of our Board of Directors and
continues to serve in a non-management role. Our current interim Chief
Financial Officer, who joined us in January&nbsp;2008, will become Acting Chief
Operating Officer after our newly appointed Chief Financial Officer joins us
later this month. Also, the general counsel of our U.S. operating subsidiary
was terminated in March&nbsp;2007. We have not yet recruited permanent
replacements for our Chief Operating Officer and General Counsel positions, and
if we cannot recruit qualified permanent replacements for such positions, our
business may suffer. Moreover, we continue to search for new independent
directors to fill the existing vacancies on our Board of Directors, and one of
the independent directors currently on our Board of Directors joined our Board
of Directors in October&nbsp;200</font>7. One of the independent directors will succeed Dr.&nbsp;Sehat
Sutardja as Chairman of the Board. Although we will endeavor to implement any
director and management transition as nondisruptive as possible, any such
transition might impact our business, and give rise to uncertainty among
customers, investors, vendors, employees and others concerning our future
direction and performance. Our future success will depend to a significant
extent on the ability of our management team to work together effectively. The
loss of any of our management or other key personnel could harm our ability to
implement our business strategy and respond to the rapidly changing market
conditions in which we operate. Moreover, our success will depend on our
ability to attract, hire and retain qualified management and other key
personnel and on the abilities of the new management personnel to function
effectively, both individually and as a group, going forward. If we are unable
to attract and retain effective qualified replacements for our key executives
and board of directors positions in a timely manner, our business, financial
condition, results of operations and cash flows may be adversely affected and
our ability to execute our business model could be impaired.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">A number of our current and former executive officers and
directors have been named as parties to several purported shareholder
derivative and class action lawsuits relating to our historic stock option
granting practices, and there is a possibility of additional lawsuits, all of
which could require significant management time and attention and result in
significant legal expenses.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to
a number of consolidated shareholder derivative lawsuits brought purportedly on
behalf of us against certain of our current and former executive officers and
board members relating to our historic stock option grant practices. We are
named as a nominal defendant in these lawsuits. The parties to these
consolidated shareholder derivative lawsuits have reached a tentative settlement.
In addition, consolidated putative shareholder class action lawsuits have been
filed against us and certain of our officers and directors that allege
violations of the federal securities laws in connection with our </font>historic stock option granting practices. We and our current and former
executive officers and board members may in the future be subject to additional
litigation relating to our historic stock option granting practices.
Subject to certain limitations, we are obligated to indemnify our current and
former directors, officers and employees in connection with such lawsuits. The
expenses associated with these lawsuits may be significant, the amount of time
to resolve these lawsuits is unpredictable and defending these lawsuits may
divert management&#146;s attention from the day-to-day operations of our business,
which could have a material adverse effect on our financial condition,
business, results of operations and cash flows.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We have been named as a party to several purported class
action and shareholder derivative lawsuits relating to our historic </font></i></b><b><i><font style="font-style:italic;font-weight:bold;">stock </font>option
granting practices, and we may be named in additional litigation, all of which
could cause our business, financial condition, results of operations and cash
flows to suffer.</i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have been named
as a nominal defendant in purported shareholder derivative actions that name a
number of our current and former directors and officers as defendants and that
seek to recover damages purportedly sustained by us in connection with our
historic stock option granting practices. The parties in the consolidated
derivative lawsuit have </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reached a tentative settlement. In addition, putative
class actions have been filed against us and certain of our officers and
directors that allege violations of the federal securities laws in connection
with our historic option granting practices, which seek to recover damages. We
and our current and former executive officers and board members may in the
future be subject to additional litigation relating to our </font>historic stock option granting
practices. We cannot predict the outcome of these lawsuits. Regardless of the
outcome, these lawsuits, and any other litigation that may be brought against
us or our directors and officers, could be time consuming, result in
significant expense, and divert the attention and resources of our management
and other key employees. An unfavorable outcome in these litigations could
exceed the proceeds obtained from a recent settlement and policy release with
our directors and officers liability insurers and could have a material adverse
effect on our business, financial condition, financial results, results of
operations and cash flows, including potential impacts to certain covenants in
our existing credit agreement.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our tentative settlement of the consolidated shareholder
derivative actions requires the court&#146;s preliminary and final approval, and may
not be approved by the court.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On or about March&nbsp;5,
2008, the parties entered into a memorandum of understanding that tentatively
settles and resolves the pending consolidated derivative action. This tentative
settlement of the derivative actions requires court approval before it becomes
final. The court may not preliminarily or finally approve the tentative
settlement. If the court does not approve the tentative settlement, the parties
might elect or be required to continue litigating the consolidated derivative
actions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Matters related to the internal review of our historic stock
option granting practices and the restatement of our financial statements may
result in additional litigation, regulatory proceedings and government
enforcement actions, and could have a negative impact on our reputation,
business, financial condition and financial results.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our historic stock
option granting practices and the restatement of our financial statements have
exposed us to greater risks associated with litigation, regulatory proceedings
and government enforcement actions. We may become the subject of additional
private or government actions regarding these matters in the future. We
provided the results of our internal review to the SEC and the United States
Attorney&#146;s Office for the Northern District of California, and in that regard
responded to formal and informal requests for documents and additional
information. As discussed above, the SEC conducted first an informal and then a
formal investigation of our historic stock option grant practices. On May&nbsp;8,
2008, we announced that we had reached an agreement with the SEC to settle this
matter. In a related agreement, Weili Dai also entered into a settlement with
the SEC. The Court entered into the final judgment against Ms.&nbsp;Dai on June&nbsp;16,
2008. We are awaiting the entry of the final judgment against us. Although this
settlement will conclude the SEC&#146;s formal investigation of us with respect to
our historic stock option granting practices, we cannot be certain regarding
the outcome of any other unresolved litigation, regulatory proceedings and
government enforcement actions relating to our </font>historic stock option granting practices. The resolution of these
matters has been and will be time consuming and expensive, and may require the
time and attention of our management. Subject to certain limitations, we are
obligated to indemnify our current and former directors, officers and employees
in connection with the shareholder litigation, as well as the government
investigations of our historic stock option granting practices and any subsequent litigation. Further, we could
be required to pay damages or additional penalties or have other remedies
imposed against us, our directors, executive officers or other officers, or
employees, which could harm our reputation, business, financial condition,
results of operations and cash flows. Moreover, ongoing government
investigations, and the pending shareholder derivative and class action
litigation could have a negative impact on our relationships with customers,
suppliers and business partners, our ability to generate revenue, our ability
to obtain director and officer insurance coverage, our ability to attract and
retain employees, officers, and directors, our ability to access debt and
equity markets, customer and investor confidence in our board and management,
and our revenue, net income, expenses, results of operations, profitability,
earnings-per-share and cash flows.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Class&nbsp;action litigation due to stock price volatility
or other factors could cause us to incur substantial costs and divert our
management&#146;s attention and resources.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On July&nbsp;31,
2001, a putative class action suit was filed against two investment banks that
participated in the underwriting of our initial public offering (&#147;IPO&#148;) on June&nbsp;29,
2000. That lawsuit, which did not name </font>us or any of our officers or directors as defendants, was filed in
the United States District Court for the Southern District of New York.
Plaintiffs allege that the underwriters received &#147;excessive&#148; and undisclosed
commissions and entered into unlawful &#147;tie-in&#148; agreements with certain of their
investment clients in violation of Section&nbsp;10(b)&nbsp;of the Exchange Act.
Thereafter, on </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;5, 2001, a second putative class action
was filed in the Southern District of New York relating to our IPO. In this
second action, plaintiffs named three underwriters as defendants and also named
as defendants, us and two of our officers, one of whom is also a director.
Relying on many of the same allegations contained in the initial complaint in
which we were not named as a defendant, plaintiffs allege that the defendants
violated various provisions of the Securities Act and the Exchange Act in the
course of our IPO. In both actions, plaintiffs seek, among other items,
unspecified damages, pre-judgment interest and reimbursement of attorneys&#146; and
experts&#146; fees. These two actions relating to our IPO have been coordinated with
hundreds of other similar lawsuits filed by plaintiffs against approximately 40
underwriters and approximately 300 issuers across the United States. Defendants
in the coordinated proceedings moved to dismiss the actions. In February&nbsp;2003,
the trial court granted the motions in part and denied them in part, thus
allowing the case to proceed against us and the underwriters and us as to alleged
violations of section&nbsp;11 of the Securities Act and section&nbsp;10(b)&nbsp;of
the Exchange Act. Claims against the individual officers have been voluntarily
dismissed with prejudice by agreement with plaintiffs. In June&nbsp;2004, a
stipulation of settlement and release of claims against the issuer defendants,
including us, was submitted to the court for approval. On August&nbsp;31, 2005,
the court preliminarily approved the settlement. In December&nbsp;2006, the
appellate court overturned the certification of classes in the six focus cases
that were selected by the underwriter defendants and plaintiffs in the
coordinated proceedings (the action involving </font>us is not one of the six cases). Because
class certification was a condition of the settlement, it was unlikely that the
settlement would receive final court approval. On June&nbsp;25, 2007, the court
entered an order terminating the proposed settlement based upon a stipulation
among the parties to the settlement. Plaintiffs have filed amended master
allegations and amended complaints in the six focus cases and have moved for
class certification. On December&nbsp;21, 2007, defendants in the six focus
cases filed briefs opposing plaintiffs&#146; motion for class certification. The
parties have also fully briefed a motion to dismiss by defendants in the six
focus cases. The court has not yet set a hearing date for either of those
motions. In the past, securities class action litigation often has been brought
against a company following periods of volatility in the market price of its
securities. Companies in the integrated circuit industry and other technology
industries are particularly vulnerable to this kind of litigation due to the
high volatility of their stock prices. Accordingly, we may in the future be the
target of additional securities litigation. Any securities litigation could
result in substantial costs, could divert the attention and resources of our
management, and could have a material adverse effect on our reputation,
business, financial condition, financial results, results of operations and
cash flows.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We have had and continue to have material weaknesses in
internal control over financial reporting and cannot assure you that additional
material weaknesses will not be identified in the future. If our internal
control over financial reporting or disclosure controls and procedures are not
effective, there may be errors in our financial statements that could require a
restatement or our filings may not be filed on a timely basis and investors may
lose confidence in our reported financial information, which could lead to a
decline in our stock price.</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have assessed
that we continue to have material weaknesses in internal control over financial
reporting. Effective internal controls are necessary for us to provide reliable
financial reports and effectively prevent fraud. Any inability to provide
reliable financial reports or prevent fraud could harm our business. The
Sarbanes-Oxley Act of 2002 requires management and our auditors to evaluate and
assess the effectiveness of our internal control over financial reporting.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our management,
including our Chief Executive Officer and interim Chief Financial Officer, does
not expect that our internal control over financial reporting will prevent all
error and all fraud. A control system, no matter how well designed and
operated, can provide only reasonable, not absolute, assurance that the control
system&#146;s objectives will be met. Further, the design of a control system must
reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent
limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any,
involving us have been, or will be, detected. These inherent limitations
include the realities that judgments in decision making can be faulty,
breakdowns can occur because of simple error or mistake and errors discovered
by personnel within control systems may not be properly disclosed and
addressed. Controls can also be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
controls. The design of any system of controls is based in part on certain
assumptions about the likelihood of future events, and we cannot assure you
that any design will succeed in achieving its stated goals under all potential
future conditions. Over time, controls may become inadequate because of changes
in conditions or deterioration in the degree of compliance with policies or
procedures. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We cannot assure you
that material weaknesses in our internal control over financial reporting will
not be identified in the future. Although we intend to continue to devote
substantial resources to improve our internal control processes, we may not be
able to effectively and timely implement necessary control changes and employee
training to ensure continued compliance with the Sarbanes-Oxley Act of 2002 and
other regulatory and reporting requirements. Our rapid growth and numerous
acquisitions in recent periods, and our possible future expansion through
additional acquisitions, present challenges to maintain the internal control
and disclosure control standards applicable to public companies. Any failure to
maintain or implement required new or improved controls, or any difficulties we
encounter in their implementation, could result in significant deficiencies or
material weaknesses, cause us to fail to timely meet our periodic reporting
obligations, or result in material misstatements in our financial statements.
Any such failure could also adversely affect the results of periodic management
evaluations and the effectiveness of our internal control over financial
reporting required under the Sarbanes-Oxley Act of 2002. The existence of a
material weakness could result in errors in our financial statements that could
result in a restatement of financial statements, cause us to fail to timely
meet our reporting obligations and cause investors to lose confidence in our
reported financial information, leading to a decline in our stock price. If we
fail to maintain effective internal controls, we could be subject to regulatory
scrutiny and sanctions and investors could lose confidence in the accuracy and
completeness of our financial reports. We cannot assure you that we will be able
to fully comply with the requirements of the Sarbanes-Oxley Act of 2002&#160; or that management or our auditors will
conclude that our internal control over financial reporting is effective in
future periods.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">If the recent worsening of credit market conditions
continues or increases, it could have a material adverse impact on our
investment portfolio.</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recent U.S.
sub-prime mortgage defaults have had a significant impact across various
sectors of the financial markets, causing global credit and liquidity issues.
The short-term funding markets experienced credit issues during the second half
of calendar 2007 and continuing into the first and second quarter of calendar
2008, leading to liquidity disruption in asset-backed commercial paper and
failed auctions in the auction rate market. If the global credit market
continues to deteriorate, our investment portfolio may be impacted and we could
determine that some of our investments are impaired. This could materially
adversely impact our results of operations and financial condition.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of May&nbsp;3,
2008, our investment portfolio included $42.2&nbsp;million in par value of
auction rate securities.&#160; Auction rate
securities are usually found in the form of municipal bonds, preferred stock,
pools of student loans or collateralized debt obligations with contractual
maturities generally between 20 to 30&nbsp;years and whose interest rates are
reset every seven to thirty five days through an auction process. At the end of
each reset period, investors can sell or continue to hold the securities at
par.&#160; Our auction rate securities are all
backed by student loans originated under the Federal Family Education Loan
Program, and are over-collateralized, insured and guaranteed by the United
States Federal Department of Education.&#160;
All auction rate securities held by us are rated by the major
independent rating agencies as either AAA or Aaa at the time of purchase.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Beginning in February&nbsp;2008,
liquidity issues in the global credit markets resulted in failure of the
auctions representing all of the auction rate securities held by us, as the
amount of securities submitted for sale in those auctions exceed the amount of
bids.&#160; The failures of the auctions are
not believed to be a credit issue, but rather caused by a lack of
liquidity.&#160; Due to the failure of
auctions, we used a discounted cash flow model to estimate the fair value of
the auction rate securities as of May&nbsp;3, 2008.&#160; The assumptions used in preparing the
discounted cash flow model included estimates for the amount and timing of future
interest and principal payments, the collateralization of underlying security
investments, the credit worthiness of the issuer and the rate of return
required by investors to own these securities in the current environment,
including call premium and liquidity premium.&#160;
During the three month period ended May&nbsp;3, 2008, we recorded a
temporary impairment charge of $1.7 million calculated using a discounted cash
flow model, in accumulated other comprehensive income, a component of
shareholders&#146; equity.&#160; When evaluating
whether the impairment of the investments are temporary or other than
temporary, we reviewed factors such as the length of time and extent to which
fair value has been below cost basis and our ability and intent to hold the
investment for a period of time which may be sufficient for anticipated
recovery in market value.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">While the recent
auction failures will limit our ability to liquidate these investments, we do
not believe that the auction failures will materially impact our ability to
fund our working capital needs, capital expenditures or other business
requirements.&#160; We believe that we have
the ability to hold these securities for a period longer than </font>12 months.&#160; However, at the reporting date, it is not
certain when liquidity will return to the markets, or if any other secondary </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">markets will become available, we have continued to
classify these auction rate securities in long-term investments as of May&nbsp;3,
2008.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will continue
to evaluate the impact of these failed auctions on the fair value of the
securities.&#160; If the issuer of the auction
rate securities is unable to successfully close future auctions or does not
redeem the auction rate securities, or the United States government fails to
support its guaranty of the obligations, we may be required to adjust the
carrying value of the auction rate securities and record other-than-temporary
impairment charges in future periods, which could materially affect our results
of operations and financial condition.&#160;
Further, if the fair value of these securities is determined to be other
than temporarily impaired, we may be required to record a loss which could
materially affect our statement of operations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">There are numerous risks with our acquisition of the
communications and application processor business of Intel</font></i></b>.</p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We face
significant challenges in connection with the integration of the communications
and application processor business of Intel that we acquired in </font>November&nbsp;2006. The integration of
the communications and application processor business of Intel could prove to
be more difficult than we originally anticipated, which could increase our
total direct costs associated with the acquisition. Moreover, this acquisition
could fail to produce anticipated benefits, or could result in unforeseen
liabilities or expenses such as future impairment charges of acquired assets
and goodwill or other adverse effects that we currently do not foresee, which
could harm our business and operating results.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The integration of
these business assets and personnel has been and will continue to be a time
consuming and expensive process that may disrupt our operations if it is not
completed in a timely and efficient manner. If customers do not accept or are
dissatisfied with the way we have integrated the manufacturing processes of the
business, they may adopt competing products and solutions. If our integration
efforts are not successful, our results of operations could be harmed, employee
morale could decline, key employees could leave, and customer relations could
be damaged. In addition, we may not achieve anticipated synergies or other
benefits. The total cost of the integration may exceed our expectations, which
would harm our operating results.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our recent acquisitions and any future acquisitions could
harm our operating results and share price.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In November&nbsp;2006,
we completed our acquisition of the communications and application processor
business of Intel. We also completed several smaller acquisitions over the last
three fiscal years.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Such acquisitions,
as well as acquisitions in the future, could materially harm our operating
results or liquidity as a result of possible concurrent issuances of dilutive
equity securities or payment of cash. In addition, the purchase price of any
acquired businesses may exceed the current fair values of the net tangible
assets of the acquired businesses. As a result, we would be required to record
material amounts of goodwill, acquired in-process research and development charges
and other intangible assets, which could result in significant impairment and
acquired in-process research and development charges and amortization expense
in future periods. It may also be necessary for us to take other financial
charges and reserves as a result of acquisitions, such as inventory
write-downs. These charges, in addition to the results of operations of such
acquired businesses, could have a material adverse effect on our business,
financial condition and results of operations. We cannot forecast the number,
timing or size of future acquisitions, or the effect that any such acquisitions
might have on our operating or financial results.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under GAAP, we are
required to review our intangible assets for impairment whenever events or
changes in circumstances indicate that the carrying value of these assets may
not be recoverable. In addition, we are required to review our goodwill and
indefinite-lived intangible assets on an annual basis. If presently unforeseen
events or changes in circumstances arise which indicate that the carrying value
of our goodwill or other intangible assets may not be recoverable, we will be
required to perform impairment reviews of these assets, which had carrying
values of approximately $2.4&nbsp;billion as of May&nbsp;3, 2008. An impairment
review could result in a write-down of all or a portion of these assets to
their fair values. We intend to perform an annual impairment review during the
fourth quarter of each fiscal year or more frequently if we believe indicators
of impairment exist. In light of the large carrying value associated with our
goodwill and intangible assets, any write-down of these assets may result in a
significant charge to our statement of operations in the period any impairment
is determined and could cause our stock price to decline.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We have made and may continue to make acquisitions and
investments which could divert management&#146;s attention, cause ownership dilution
to our shareholders, be difficult to integrate and adversely affect our
financial results.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We expect to
continue to make acquisitions of, and investments in, businesses that offer
complementary products, services and technologies, augment our market segment
coverage, or enhance our technological capabilities. We may also enter into
strategic alliances or joint ventures to achieve these goals. We cannot assure
you that we will be able to identify suitable acquisition, investment, alliance
or joint venture opportunities</font>, or that we will be able to consummate any such transactions or
relationships on terms and conditions acceptable to us, or that such
transactions or relationships will be successful.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Integrating newly
acquired businesses or technologies could put a strain on our resources, could
be costly and time consuming, and might not be successful. Such acquisitions
could divert our management&#146;s attention from other business concerns. In
addition, we might lose key employees while integrating new organizations.
Acquisitions could also result in customer dissatisfaction, performance
problems with an acquired company or technology, potentially dilutive issuances
of equity securities or the incurrence of debt, the assumption or incurrence of
contingent liabilities, possible impairment charges related to goodwill or
other intangible assets</font>,
or other unanticipated events or circumstances, any of which could harm our
business. We might not be successful in integrating any acquired businesses,
products or technologies, and might not achieve anticipated revenues and cost
benefits.</p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our ability to
realize the expected benefits of our acquisition of the communications and
application processor business of Intel and to eliminate the operating losses
of that business will depend in large part on our ability to arrange for or
maintain more cost-effective production of that business&#146; products, either
through the recently completed transition of the manufacturing of certain
products from Intel to third-party foundries or through continuing arrangements
with Intel for certain legacy products, increase the gross margin of those
products, and retain the business&#146; relationship with its principal customers,
along with other matters described above relating to our ability to integrate
effectively the acquired business and its technologies, operations and
personnel.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">A significant portion of our business is dependent on the
hard disk drive industry, which is highly cyclical, experiences rapid
technological change, and is facing increased competition from alternate technologies.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The hard disk
drive industry is intensely competitive, and the technology changes rapidly. As
a result, this industry is highly cyclical, with periods of increased demand
and rapid growth followed by periods of oversupply and subsequent contraction.
These cycles may affect us because our customers are suppliers to this
industry. Hard disk drive manufacturers tend to order more components than they
may need during growth periods, and sharply reduce orders for components during
periods of contraction. In addition, advances in existing technologies and the
introduction of new technologies may result in lower demand for disk drive
storage devices, thereby reducing demand for our products. Rapid technological
changes in the hard disk drive industry often result in significant and rapid
shifts in market share among the industry&#146;s participants. If the hard disk
drive manufacturers using our products do not retain or increase their market
share, our sales may decrease.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Future changes in
the nature of information storage products may reduce demand for traditional
hard disk drives. For instance, products using alternative technologies, such
as semiconductor memory, optical storage, and other storage technologies could
become a significant source of competition to manufacturers of hard disk
drives. Flash memory has typically been more costly than disk drive
technologies. However, flash memory manufacturers have been reducing the prices
for their products, which could enable them to complete more effectively with
very small form factor hard disk drive products. Demand for hard disk drives
could be reduced if alternative storage technologies such as flash memory can
meet customers&#146; cost and capacity requirements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our sales are concentrated in a few customers and if we lose
or experience a significant reduction in sales to any of these key customers,
our revenues may decrease substantially.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We receive a
significant amount of our revenues from a limited number of customers. For the
quarter ended May&nbsp;3, 2008</font>, one customer accounted for more than 10% of our net revenue, for a
total of 21% of our net revenue. Sales to our largest customers have fluctuated
significantly from period to period primarily due to the timing and number of
design wins with each customer, as well as the continued diversification of our
customer base as we expand into new markets, and will likely continue to
fluctuate dramatically in the future. The loss of any of our largest customers,
a significant </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reduction in sales we make to them, or any problems we
encounter collecting amounts due from them would likely harm our financial
condition and results of operations. Our operating results in the foreseeable
future will continue to depend on sales to a relatively small number of
customers, as well as the ability of these customers to sell products that
incorporate our products. In the future, these customers may decide not to
purchase our products at all, purchase fewer products than they did in the past,
or alter their purchasing patterns in some other way, particularly because:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>substantially all of our sales are
made on a purchase order basis, which permits our customers to cancel, change
or delay product purchase commitments with little or no notice to us and
without penalty;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our customers may develop their own
solutions;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our customers may purchase integrated
circuits from our competitors; or</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our customers may discontinue sales
or lose market share in the markets for which they purchase our products.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">If we are unable to accurately predict our future sales and
to appropriately budget for our expenses, our operating results could suffer.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rapidly
changing nature of the markets in which we sell our products limits our ability
to accurately forecast quarterly and annual sales. Additionally, because many
of our expenses are fixed in the short term or are incurred in advance of
anticipated sales, we may not be able to decrease our expenses in a timely
manner to offset any shortfall of sales. If our sales do not increase as
anticipated, significant losses could result due to our higher expense levels.
For example, although in fiscal years 2006 and 2007 we expanded our staffing
and increased our expense levels in anticipation of future sales growth, in the
fourth quarter of fiscal 2008, we implemented a plan to reduce operating
expenses and help meet financial targets with a worldwide reduction in force of
approximately 438 employees, or approximately 8% of our total workforce. We
expect cost savings from this restructuring to be used to offset market forces
or to be reinvested in our businesses to strengthen our competitiveness, but we
cannot be certain that we will be successful in these efforts.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our financial and operating results may vary which may cause
the price of our common shares to decline.</font></i></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We currently
provide guidance on revenue and gross margin on a quarterly basis. Our
quarterly operating results have fluctuated in the past and are likely to do so
in the future. Because our operating results are difficult to predict, you
should not rely on quarterly comparisons of our results of operations as an
indication of our future performance. We have made substantial investments in
expanding our operations which has resulted in an increase in our operating
expenses. We may not be able to increase revenues in an amount sufficient to
offset these increased expenditures, which may lead to a loss for a quarterly
period.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fluctuations in
our operating results may be due to a number of factors, including, but not
limited to, those listed below and those identified throughout this &#147;Risk
Factors&#148; section:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>order
or shipment cancellations, rescheduling or deferrals of significant customer
orders;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to scale our operations in response to changes in demand for our
existing products and services or demand for new products requested by our
customers;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>gain
or loss of a key customer;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to maintain a competitive cost structure for our manufacturing and
assembly and test processes;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>failure
to qualify our products or our suppliers&#146; manufacturing lines;</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to exercise stringent quality control measures to obtain high yields;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\105562\08-17005-1\task2996999\17005-1-ba-01.htm',USER='105562',CD='Jun 20 22:20 2008' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">effective and timely update of equipment
and facilities as required for leading edge production capabilities; and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">our ability to realize the benefits
expected from our recent acquisitions, including our acquisition of the Intel
communications and application processor business of Intel.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Due to fluctuations in our quarterly operating results and other
factors, the price at which our common shares will trade is likely to continue
to be highly volatile. In future periods, if our revenues or operating results
are below our estimates or the estimates or expectations of public market
analysts and investors, our stock price could decline. On average, technology
companies have been subject to a greater number of securities class action
claims than companies in many other industries as a result of stock price
volatility. If our stock price is volatile, we may become involved in this type
of litigation. Any litigation could result in substantial costs and a diversion
of management&#146;s attention and resources that are needed to successfully run our
business.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Changes in
financial accounting standards or practices or existing taxation rules&nbsp;or
practices may cause adverse unexpected revenue and expense fluctuations and
affect our reported results of operations.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A change in accounting standards or practices or a change in existing
taxation rules&nbsp;or practices can have a significant effect on our reported
results and may even affect our reporting of transactions completed before the
change is effective. New accounting pronouncements and taxation rules&nbsp;and
varying interpretations of accounting pronouncements and taxation practice have
occurred and may occur in the future. Changes to existing rules&nbsp;or the
questioning of current practices by regulators may adversely affect our
reported financial results or the way we conduct our business.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">If we are unable to
develop and introduce new and enhanced products that achieve market acceptance
in a timely and cost-effective manner, our operating results and competitive
position will be harmed.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our future success will depend on our ability, in a timely and
cost-effective manner, to develop and introduce new products and enhancements
to our existing products. We must also achieve market acceptance for these
products and enhancements. If we do not successfully develop and achieve market
acceptance for new and enhanced products, our ability to maintain or increase
revenues will suffer. The development of our products is highly complex. We
occasionally have experienced delays in completing the development and
introduction of new products and product enhancements, and we could experience
delays in the future. Even if new and enhanced products are introduced to the
market, we may not be able to achieve market acceptance of them in a timely manner.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, our longstanding relationships with some of our larger
customers may also deter other potential customers who compete with these
customers from buying our products. To attract new customers or retain existing
customers, we may offer certain customers favorable prices on our products. If
these prices are lower than the prices paid by our existing customers, we would
have to offer the same lower prices to certain of our customers who have
contractual &#147;most favored nation&#148; pricing arrangements. In that event, our
average selling prices and gross margins would decline. The loss of a key
customer, a reduction in sales to any key customer or our inability to attract
new significant customers could materially and adversely affect our business, financial
condition and results of operations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">If we fail to
appropriately scale our operations in response to changes in demand for our
existing products and services or to the demand for new products requested by
our customers, our business could be materially and adversely affected.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To achieve our business objectives, it may be necessary from time to
time for us to expand or contract our operations. For example, we have
experienced periods of rapid growth and expansion. Through internal growth and
acquisitions, we significantly increased the scope of our operations and
expanded our workforce from 1,205 employees, as of January&nbsp;31, 2003, to
5,320 employees, as of May&nbsp;3, 2008. Nonetheless, we may not be able to
scale our workforce and operations in a sufficiently timely manner to respond
effectively to changes in demand for our existing products and services or to
the demand for new products requested by our customers. In that event, we may
be unable to meet competitive challenges or exploit potential market
opportunities, and our current or future business could be materially and
adversely affected. Conversely, if we expand our operations and workforce too
rapidly in anticipation of increased demand for our products, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and such demand
does not materialize at the pace at which we expected, the rate of increase in
our operating expenses may exceed the rate of increase in our revenue, which
would adversely affect our operating results.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our past growth has placed, and any future growth is expected to
continue to place, a significant strain on our management personnel, systems
and resources. To implement our current business and product plans, we will
need to continue to expand, train, manage and motivate our workforce. All of
these endeavors will require substantial management effort. Although we have
implemented an enterprise resource planning system to help us improve our
planning and management processes, we anticipate that we will also need to
continue to implement and improve a variety of new and upgraded operational and
financial systems, as well as additional procedures and other internal
management systems. These processes can be time consuming and expensive,
increase management responsibilities, and divert management attention. If we
are unable to effectively manage our expanding operations, we may be unable to
scale our business quickly enough to meet competitive challenges or exploit
potential market opportunities, or conversely, we may scale our business too
quickly and the rate of increase in our expenses may exceed the rate of
increase in our revenue, either of which would materially and adversely affect
our current or future business.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We rely on
independent foundries and subcontractors for the manufacture, assembly and
testing of our integrated circuit products, and the failure of any of these
third-party vendors to deliver products or otherwise perform as requested could
damage our relationships with our customers, decrease our sales and limit our
growth.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We do not have our own manufacturing or assembly facilities and have
very limited in-house testing facilities. Therefore, we rely on third-party
vendors to manufacture, assemble and test the products we design. We currently
rely on several third-party foundries to produce substantially all of our
integrated circuit products. We also currently rely on several third-party
assembly and test subcontractors to assemble, package and test our products.
This exposes us to a variety of risks, including the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Regional Concentration:</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Substantially all of our products are manufactured by third-party
foundries located in Taiwan. Currently our only alternative manufacturing
sources are located in Taiwan, China and Singapore. In addition, substantially
all of our assembly and testing facilities are located in Singapore, Taiwan,
Malaysia and the Philippines. Because of the geographic concentration of these
third-party foundries, we are exposed to the risk that their operations may be
disrupted by regional disasters. For example, the risk of an earthquake in
Taiwan and elsewhere in the Pacific Rim region is significant due to the
proximity of major earthquake fault lines to the facilities of our foundries
and assembly and test subcontractors. In September&nbsp;1999, a major
earthquake in Taiwan affected the facilities of several of these third-party
contractors. As a consequence of this earthquake, these contractors suffered
power outages and disruptions that impaired their production capacity. Major
earthquakes also occurred in Taiwan in 2002, 2003, 2004 and more recently in
2006. In addition, the resurgence of severe acute respiratory syndrome, the
outbreak of avian flu and any similar future outbreaks in Asia, where these
foundries are located, could affect the production capabilities of our
manufacturers by resulting in quarantines or closures. In the event of such a
quarantine or closure, if we were unable to quickly identify alternate
manufacturing facilities, our revenues, cost of revenues and results of
operations would be negatively impacted. If these vendors do not provide us
with high-quality products and services in a timely manner, or if one or more
of these vendors terminates its relationship with us, we may be unable to
obtain satisfactory replacements to fulfill customer orders on a timely basis,
our relationships with our customers could suffer, our sales could decrease and
harm our business, financial condition or results of operations.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">No Guarantee of Capacity or Supply:</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Availability of foundry capacity has from time to time in the past been
constrained due to strong demand, and with limited exceptions, our vendors are
not obligated to perform services or supply products to us for any specific
period, in any specific quantities, or at any specific price, except as may be
provided in a particular purchase order. The ability of each foundry to provide
us with semiconductor devices is limited by its available capacity and existing
obligations. Although we have entered into contractual commitments to supply
specified levels of products to some of our customers, we may not have
sufficient levels of production capacity with all of our foundries, despite
signing a long-term guaranteed production capacity agreement with one of our
foundries. Despite this agreement, foundry capacity may not be available when
we need it or at reasonable prices. We place our orders on the basis of our
customers&#146; purchase orders or our forecast of customer demand, and the
foundries can allocate capacity to the production of other companies&#146; </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">products and
reduce deliveries to us on short notice. It is possible that foundry customers
that are larger and better financed than we are or that have long-term
agreements with our main foundries, may induce our foundries to reallocate
capacity to those customers. This reallocation could impair our ability to
secure the supply of components that we need.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we use several independent foundries to manufacture
substantially all of our semiconductor products, most of our components are not
manufactured at more than one foundry at any given time, and our products
typically are designed to be manufactured in a specific process at only one of
these foundries. Accordingly, if one of our foundries is unable to provide us
with components as needed, it may be difficult for us to transition the
manufacture of our products to other foundries, and we could experience
significant delays in securing sufficient supplies of those components. This could
result in a material decline in revenues, net income and cash flow.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to secure sufficient foundry capacity when demand is high and
mitigate the risks described in the foregoing paragraph, we may enter into
various arrangements with suppliers that could be costly and harm our operating
results, such as nonrefundable deposits with or loans to foundries in exchange
for capacity commitments, and contracts that commit us to purchase specified
quantities of integrated circuits over extended periods. We may not be able to
make any such arrangement in a timely fashion or at all, and any arrangements
may be costly, reduce our financial flexibility, and not be on terms favorable
to us. For example, amounts payable under our foundry capacity are non-refundable
regardless of whether we are able to utilize all of any of the guaranteed wafer
capacity under the terms of the agreement. Moreover, if we are able to secure
foundry capacity, we may be obligated to use all of that capacity or incur
penalties. These penalties may be expensive and could harm our financial
results.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Uncertain Yields and Quality:</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The fabrication of integrated circuits is a complex and technically
demanding process. Our foundries have from time to time experienced
manufacturing defects and reduced manufacturing yields. Changes in
manufacturing processes or the inadvertent use of defective or contaminated
materials by our foundries could result in lower than anticipated manufacturing
yields or unacceptable performance. Many of these problems are difficult to
detect at an early stage of the manufacturing process and may be time consuming
and expensive to correct. Poor yields from our foundries, or defects,
integration issues or other performance problems in our products could cause us
significant customer relations and business reputation problems, harm our
financial results and result in financial or other damages to our customers.
Our customers could also seek damages from us for their losses. A product
liability claim brought against us, even if unsuccessful, would likely be time
consuming and costly to defend. In addition, defects in our existing or new
products could result in significant warranty, support and repair costs, and
divert the attention of our engineering personnel from our product development
efforts.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our operations
located in the State of Israel may be harmed by adverse political, economic and
military conditions affecting Israel.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have substantial operations, including approximately 20% of our
workforce as of the first quarter ended May&nbsp;3, 2008, in Israel. These
operations are directly influenced by the political, economic and military
conditions affecting Israel. Any potential hostilities involving or within
Israel could disrupt these operations. For example, past hostilities between
Israel and the Palestinian authority and other groups have caused substantial
political unrest, which could lead to a potential economic downturn in Israel.
Additionally, the ongoing situation in Iraq could lead to more economic
instability and uncertainty in the State of Israel and the Middle East. Also,
the interruption or curtailment of trade between Israel and its present trading
partners or a significant downturn in the economic or financial condition of
Israel could negatively impact the business operations and financial results of
our operations in Israel.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We rely on
third-party distributors and manufacturers&#146; representatives and the failure of
these distributors and manufacturers&#146; representatives to perform as expected
could reduce our future sales.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We sell many of our products to customers through distributors and
manufacturers&#146; representatives. Our relationships with some of our distributors
and manufacturers&#146; representatives have been established within the last two
years, and we are unable to predict the extent to which our distributors and
manufacturers&#146; representatives will be successful in marketing and selling our
products. Moreover, many of our distributors and manufacturers&#146; representatives
also market and sell competing products. Our </font><font size="2" style="font-size:10.0pt;">distributors and manufacturer&#146;s
</font><font size="2" style="font-size:10.0pt;">representatives may
terminate their relationships with us at any time. Our future performance will
also depend, in part, on our ability to attract additional distributors or </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">manufacturers&#146;
representatives that will be able to market and support our products
effectively, especially in markets in which we have not previously distributed
our products. If we cannot retain our current distributors or manufacturers&#146; representatives
or recruit additional or replacement distributors or manufacturers&#146;
representatives, our sales and operating results will be harmed. The loss of
one or more of our distributors or manufacturers&#146; representatives could harm
our sales and results of operations. We generally realize a higher gross margin
on direct sales and from sales through manufacturers&#146; representatives than on
sales through distributors. Accordingly, if our distributors were to account
for an increased portion of our net sales, our gross margins may decline.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We are subject to
order and shipment uncertainties, and if we are unable to accurately predict
customer demand, we may hold excess or obsolete inventory, which would reduce
our profit margin, or, conversely, we may have insufficient inventory, which
would result in lost revenue opportunities and potentially in loss of market
share and damaged customer relationships.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We typically sell products pursuant to purchase orders rather than
long-term purchase commitments. Customers can generally cancel or defer
purchase orders on short notice without incurring a significant penalty. In the
recent past, some of our customers have developed excess inventories of their
own products and have, as a consequence, deferred purchase orders for our
products. We cannot accurately predict what or how many products our customers
will need in the future. Anticipating demand is difficult because our customers
face volatile pricing and unpredictable demand for their own products and are
increasingly focused more on cash preservation and tighter inventory
management. In addition, as an increasing number of our chips are being
incorporated into consumer products, we anticipate greater fluctuations in
demand for our products, which makes it more difficult to forecast customer
demand. We place orders with our suppliers based on forecasts of customer
demand and, in some instances, may establish buffer inventories to accommodate
anticipated demand. Our forecasts are based on multiple assumptions, each of which
may introduce error into our estimates. If we overestimate customer demand, we
may allocate resources to manufacturing products that we may not be able to
sell when we expect to, if at all. As a result, we would hold excess or
obsolete inventory, which would reduce our profit margins and adversely affect
our financial results. Conversely, if we underestimate customer demand or if
insufficient manufacturing capacity is available, we would forgo revenue
opportunities and potentially lose market share and damage our customer
relationships. In addition, any future significant cancellations or deferrals
of product orders or the return of previously sold products could materially
and adversely affect our profit margins, increase product obsolescence and restrict
our ability to fund our operations. Furthermore, we generally recognize revenue
upon shipment of products to a customer. If a customer refuses to accept
shipped products or does not timely pay for these products, we could incur
significant charges against our income.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our future success
depends in significant part on strategic relationships with customers. If we
cannot maintain these relationships or if these customers develop their own
solutions or adopt a competitor&#146;s solutions instead of buying our products, our
operating results would be adversely affected.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the past, we have relied in significant part on our strategic
relationships with customers that are technology leaders in our target markets.
We intend to pursue and continue to form these strategic relationships in the
future but we cannot assure you that we will be able to do so. These
relationships often require us to develop new products that may involve
significant technological challenges. Our customers frequently place
considerable pressure on us to meet their tight development schedules.
Accordingly, we may have to devote a substantial amount of our limited
resources to our strategic relationships, which could detract from or delay our
completion of other important development projects. Delays in the development
could impair our relationships with our strategic customers and negatively
impact sales of the products under development. Moreover, it is possible that
our customers may develop their own solutions or adopt a competitor&#146;s solution
for products that they currently buy from us. If that happens, our business,
financial condition and results of operations could be materially harmed.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We may experience
difficulties in transitioning to smaller geometry process technologies or in
achieving higher levels of design integration, which may result in reduced
manufacturing yields, delays in product deliveries and increased expenses.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to remain competitive, we expect to continue to transition our
semiconductor products to increasingly smaller line width geometries. This
transition requires us to modify the manufacturing processes for our products
and to redesign some products. We periodically evaluate the benefits, on a
product-by-product basis, of migrating to smaller geometry process technologies
to reduce our costs. In the past, we have experienced some difficulties in
shifting to </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">smaller geometry
process technologies or new manufacturing processes, which resulted in reduced
manufacturing yields, delays in product deliveries and increased expenses. We
may face similar difficulties, delays and expenses as we continue to transition
our products to smaller geometry processes. We are dependent on our
relationships with our foundry subcontractors to transition to smaller geometry
processes successfully. We cannot assure you that the foundries that we use
will be able to effectively manage the transition or that we will be able to
maintain our existing foundry relationships or develop new ones. If any of our
foundry subcontractors or we experience significant delays in this transition
or fail to efficiently implement this transition, we could experience reduced
manufacturing yields, delays in product deliveries and increased expenses, all
of which could harm our relationships with our customers and our results of
operations. As smaller geometry processes become more prevalent, we expect to
continue to integrate greater levels of functionality, as well as customer and
third party intellectual property, into our products. However, we may not be
able to achieve higher levels of design integration or deliver new integrated
products on a timely basis, if at all. Moreover, even if we are able to achieve
higher levels of design integration, such integration may have a short-term
adverse impact on our operating results, as we may reduce our revenue by
integrating the functionality of multiple chips into a single chip.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We have a large
amount of debt and our debt service obligations may prevent us from taking
actions that we would otherwise consider to be in our best interests.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of May&nbsp;3, 2008, the aggregate principal amount of our total
consolidated debt was $393.8&nbsp;million. Covenants in the agreements
governing our existing debt, and debt we may incur in the future, may
materially restrict our operations, including our ability to incur debt, pay
dividends, make certain investments and payments, make acquisitions and
encumber or dispose of assets. In addition, financial covenants contained in
agreements relating to our existing and future debt could lead to a default in
the event our results of operations do not meet our plans and we are unable to
amend those financial covenants. A default and acceleration under one debt
instrument may also trigger cross-acceleration under our other debt
instruments. An event of default under any debt instrument, if not cured or
waived, could result in the lenders requiring us to repay the debt, and could
make it more difficult for us to obtain additional debt financing arrangements,
any of which could have a material adverse effect on our business, financial
condition, results of operations and cash flows.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, the level of our indebtedness could have significant
negative consequences for our future operations, including:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increasing our vulnerability to general
adverse economic and industry conditions;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">limiting our ability to obtain additional
financing for working capital, capital and research and development
expenditures, and general corporate purposes;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">requiring the dedication of a substantial
portion of our expected cash flow or our existing cash to service our
indebtedness, thereby reducing the amount of our cash available for other
purposes, including working capital, capital expenditures and research and development
expenditures;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">limiting our flexibility in planning for,
or reacting to, changes in our business and the industry in which we compete;
and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">placing us at a possible competitive
disadvantage compared to less leveraged competitors and competitors that have
better access to capital resources.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We are subject to
the risks of owning real property.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our U.S. headquarters located in Santa Clara California, building in
Singapore, buildings in Malaysia, buildings in Switzerland and buildings in
Shanghai, China subject us to the risks of owning real property, including:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the possibility of environmental
contamination and the costs associated with fixing any environmental problems;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='15',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">adverse changes in the value of these
properties, due to interest rate changes, changes in the neighborhood in which
the property is located, or other factors;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the possible need for structural
improvements in order to comply with zoning, seismic and other legal or
regulatory requirements;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the potential disruption of our business
and operations arising from or connected with a relocation due to moving to or
renovating the facility;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increased cash commitments for
improvements to the buildings or the property or both;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">increased operating expenses for the
buildings or the property or both;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">possible disputes with tenants or other
third parties related to the buildings or the property or both; and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the risk of financial loss in excess of
amounts covered by insurance, or uninsured risks, such as the loss caused by
damage to the buildings as a result of earthquakes, floods and or other natural
disasters.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We depend on key
personnel with whom we do not have employment agreements to manage our
business, and if we are unable to retain our current personnel and hire
additional personnel, our ability to develop and successfully market our
products could be harmed.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe our future success will depend in large part upon our
ability to attract and retain highly skilled managerial, engineering and sales
and marketing personnel. The loss of any key employees or the inability to
attract or retain qualified personnel, including engineers and sales and
marketing personnel, could delay the development and introduction of and harm
our ability to sell our products. We do not have employment contracts with our
key personnel, and their knowledge of our business and industry would be
extremely difficult to replace.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There is currently a shortage of qualified technical personnel with
significant experience in the design, development, manufacturing, marketing and
sales of integrated circuits. In particular, there is a shortage of engineers
who are familiar with the intricacies of the design and manufacture of products
based on analog technology, and competition for these engineers is intense. Our
key technical personnel represent a significant asset and serve as the source
of our technological and product innovations. We may not be successful in
attracting and retaining sufficient numbers of technical personnel to support
our anticipated growth.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our officers and
directors own a large percentage of our voting stock, and two of them, together
with another employee, are also significant shareholders and are related by
blood or marriage. These factors may allow the officers and directors as a
group or the three related employees to greatly influence the election of
directors and the approval or disapproval of significant corporate actions.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of May&nbsp;3, 2008, our executive officers and directors
beneficially owned or controlled, directly or indirectly, approximately 19.3%
of our outstanding common shares. Additionally, Dr.&nbsp;Sehat Sutardja, our
Chief Executive Officer, and Weili Dai, who serves as our Vice President of
Sales for Communications and Consumer Business of MSI, are husband and wife and
Dr.&nbsp;Sehat Sutardja and Dr.&nbsp;Pantas Sutardja, our Vice President, Chief
Technology Officer, Acting Chief Operating Officer and Chief Research and
Development Officer, are brothers. Together, these three individuals held
approximately 19.3% of our outstanding common shares as of May&nbsp;3, 2008. As
a result, if the directors and officers as a group or any of Dr.&nbsp;Sehat
Sutardja, Weili Dai and Dr.&nbsp;Pantas Sutardja act together, they will
significantly influence the election of our directors and the approval or
disapproval of our significant corporate actions. This influence over our
affairs might be adverse to the interests of other shareholders. For instance,
the voting power of these officers, directors and others could have the effect
of delaying or preventing an acquisition of </font><font size="2" style="font-size:10.0pt;">us</font><font size="2" style="font-size:10.0pt;"> on terms that other shareholders may desire.
Furthermore, we have a classified board, which could also further delay or
prevent an acquisition, under certain circumstances.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Bermuda law, all of our officers, in exercising their powers and
discharging their duties, must act honestly and in good faith with a view to
our best interests and exercise the care, diligence and skill that a reasonably
prudent person </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='16',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">would exercise in comparable circumstances. Majority shareholders do
not owe fiduciary duties to minority shareholders. As a result, the minority
shareholders will not have a direct claim against the majority shareholders in
the event the majority shareholders take actions that damage the interests of
minority shareholders. Class&nbsp;actions and derivative actions are generally
not available to shareholders under the laws of Bermuda, except that Bermuda
courts would be expected to follow English case law precedent, which would
permit a shareholder to bring an action in our name if the directors or
officers are alleged to be acting beyond our corporate power, committing
illegal acts or violating our Memorandum of Association or Bye-laws. In
addition, minority shareholders would be able to challenge a corporate action
that allegedly constituted a fraud against them or required the approval of a
greater percentage of our shareholders than actually approved it. The winning
party in such an action generally would be able to recover a portion of
attorneys&#146; fees incurred in connection with the action.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We face foreign
business, political and economic risks, which may harm our results of
operations, because a majority of our products and our customers&#146; products are
manufactured and sold outside of the United States.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A substantial portion of our business is conducted outside of the
United States and, as a result, we are subject to foreign business, political
and economic risks. All of our products are manufactured outside of the United
States. Our current qualified integrated circuit foundries are located in the
same region within Taiwan, and our primary assembly and test subcontractors are
located in the Pacific Rim region. In addition, many of our customers are
located outside of the United States, primarily in Asia, which further exposes
us to foreign risks. Sales to customers located in Asia represented
approximately 84% of our net revenue in the fiscal quarter ended May&nbsp;3,
2008, 84% of our net revenue in fiscal 2008 and 89% of our net revenue in
fiscal 2007.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We anticipate that our manufacturing, assembly, testing and sales
outside of the United States will continue to account for a substantial portion
of our operations and revenue in future periods. Accordingly, we are subject to
risks associated with international operations, including:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">difficulties in obtaining domestic and
foreign export, import and other governmental approvals, permits and licenses;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">compliance with foreign laws, and laws
and practices that favor local companies;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">difficulties in staffing and managing
foreign operations;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">trade restrictions or higher tariffs;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">transportation delays;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">difficulties of managing distributors,
especially because we expect to continue to increase our sales through
international distributors;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">withholding tax obligations on revenues
that we may not be able to offset fully against our U.S. tax obligations,
including the further risk that foreign tax authorities may increase tax rates,
which could result in increased tax withholdings and penalties;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">less effective protection of intellectual
property than is afforded to us in the United States or other developed
countries;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">political and economic instability,
including wars, terrorism, other hostilities and political unrest, boycotts,
curtailment of trade and other business restrictions; and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">inadequate local infrastructure.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Moreover, the international nature of our business subjects us to risk
associated with the fluctuation of the </font><font size="2" style="font-size:10.0pt;">U.S. </font><font size="2" style="font-size:10.0pt;">dollar versus foreign currencies.
Decreases in the value of the </font><font size="2" style="font-size:10.0pt;">U.S.</font><font size="2" style="font-size:10.0pt;"> dollar versus currencies in
jurisdictions where we have large fixed costs will increase the cost of such
operations, which could harm our results of operations. For example, we have </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='17',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">large fixed costs
in Israel, which become relatively greater if the U.S. dollar declines in value
versus the Israeli shekel. On January&nbsp;27, 2007, the U.S. dollar&nbsp;-
Israeli shekel exchange ratio was 4.25, but on May&nbsp;3, 2008, this exchange
ratio had fallen to 3.45. On the other hand, because substantially all of our
sales to date have been denominated in U.</font><font size="2" style="font-size:10.0pt;">S.</font><font size="2" style="font-size:10.0pt;"> dollars, increases in the value of the </font><font size="2" style="font-size:10.0pt;">U.S.</font><font size="2" style="font-size:10.0pt;"> dollar will increase the price of our
products so that they become relatively more expensive to customers in the
local currency of a particular country, potentially leading to a reduction in
sales and profitability for us in that country. A portion of our international
revenue may be denominated in foreign currencies in the future, which will
subject us to risks associated with fluctuations in exchange rates for those
foreign currencies.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">The average selling
prices of products in our markets have historically decreased rapidly and will
likely do so in the future, which could harm our revenues and gross profits.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The products we develop and sell are used for high volume applications.
As a result, the prices of those products have historically decreased rapidly.
We may not be able to maintain or improve the gross margins and our gross
profits and financial results will suffer if we are unable to offset any reductions
in our average selling prices by increasing our efficiency through increasing
sales volumes, reducing our costs, or developing new or enhanced products on a
timely basis with higher selling prices or gross profits.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, because we do not operate our own manufacturing, assembly
or testing facilities, we may not be able to reduce our costs as rapidly as
companies that operate their own facilities, and our costs may even increase,
which could also reduce our margins. In the past, we have reduced the average
selling prices of our products in anticipation of future competitive pricing
pressures, new product introductions by us or our competitors and other
factors. We expect that we will have to do so again in the future.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We have a lengthy
and expensive product sales cycle that does not assure product sales, and that
if unsuccessful, may harm our operating results.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sales cycle for many of our products is long and requires us to
invest significant resources with each potential customer without any assurance
of sales to that customer. Our sales cycle typically begins with an extended
evaluation and test period, also known as qualification, during which our
products undergo rigorous reliability testing by our customers.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Qualification is typically followed by an extended development period
by our customers and an additional three to nine month period before a customer
commences volume production of equipment incorporating our products. This
lengthy sales cycle creates the risk that our customers will decide to cancel
or change product plans for products incorporating our integrated circuits.
During our sales cycle, our engineers assist customers in implementing our
products into the customers&#146; products. We incur significant research and
development</font><font size="2" style="font-size:10.0pt;">, </font><font size="2" style="font-size:10.0pt;">selling</font><font size="2" style="font-size:10.0pt;"> and marketing,</font><font size="2" style="font-size:10.0pt;"> general and administrative expenses as
part of this process, and this process may never generate related revenues. We
derive revenue from this process only if our design is selected. Once a
customer selects a particular integrated circuit for use in its storage
product, the customer generally uses solely that integrated circuit for a full
generation of its product. Therefore, if we do not achieve a design win for a
product, we will be unable to sell our integrated circuit to a customer until
that customer develops a new product or a new generation of its product. Even
if we achieve a design win with a customer, the customer may not ultimately
ship products incorporating our products or may cancel orders after we have
achieved a sale. In addition, we will have to begin the qualification process
again when a customer develops a new generation of a product for which we were
the successful supplier.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our typical customer contract does not obligate the customer to any
minimum purchase commitment. We may build inventory in anticipation of
receiving customer orders, but if such customer demand does not develop as we
anticipate, it may become necessary for us to write-off such inventory. Also,
during the final production of a mature product, our customers typically
exhaust their existing inventory of our integrated circuits. Consequently,
orders for our products may decline in those circumstances, even if our
products are incorporated into both our customers&#146; mature and replacement
products. A delay in a customer&#146;s transition to commercial production of a
replacement product may cause the customer to lose sales, which would delay our
ability to recover the lost sales from the discontinued mature product. In
addition, customers may defer orders in anticipation of new products or product
enhancements from our competitors or us.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='18',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We must keep pace
with rapid technological change and evolving industry standards in the
semiconductor industry to remain competitive.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our future success will depend on our ability to anticipate and adapt
to changes in technology and industry standards and our customers&#146; changing
demands. We sell products in markets that are characterized by rapid
technological change, evolving industry standards, frequent new product
introductions, short product life cycles and increasing demand for higher
levels of integration and smaller process geometries. Our past sales and
profitability have resulted, to a large extent, from our ability to anticipate
changes in technology and industry standards and to develop and introduce new
and enhanced products incorporating the new standards and technologies. Our
ability to adapt to these changes and to anticipate future standards, and the
rate of adoption and acceptance of those standards, will be a significant
factor in maintaining or improving our competitive position and prospects for
growth. If new industry standards emerge, our products or our customers&#146;
products could become unmarketable or obsolete, and we could lose market share.
We may also have to incur substantial unanticipated costs to comply with these
new standards. In addition, our target markets continue to undergo rapid growth
and consolidation. A significant slowdown in any of these markets could
materially and adversely affect our business, financial condition and results
of operations. Our success will also depend on the ability of our customers to
develop new products and enhance existing products for the markets we serve and
to introduce and promote those products successfully.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We may be unable to
protect our intellectual property, which would negatively affect our ability to
compete.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe one of our key competitive advantages results from our
collection of proprietary technologies that we have developed since our
inception. If we fail to protect these intellectual property rights,
competitors could sell products based on technology that we have developed
which could harm our competitive position and decrease our revenues. We believe
that the protection of our intellectual property rights is and will continue to
be important to the success of our business. We rely on a combination of
patent, copyright, trademark and trade secret laws, as well as nondisclosure
agreements and other methods, to protect our proprietary technologies. We also
enter into confidentiality or license agreements with our employees,
consultants and business partners, and control access to and distribution of
our documentation and other proprietary information. We have been issued
several United States patents and have a number of pending United States patent
applications. However, a patent may not be issued as a result of any
applications or, if issued, claims allowed may not be sufficiently broad to
protect our technology. In addition, it is possible that existing or future
patents may be challenged, invalidated or circumvented. Despite our efforts,
unauthorized parties may attempt to copy or otherwise obtain and use our
products or proprietary technology. Monitoring unauthorized use of our
technology is difficult, and the steps that we have taken may not prevent
unauthorized use of our technology, particularly in foreign countries where the
laws may not protect our proprietary rights as fully as in the United States.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We may become
involved with costly and lengthy litigation, which could subject us to
liability, require us to obtain or renew licenses or stop selling our products
or force us to redesign our products.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Litigation involving patents and other intellectual property is
widespread in the high-technology industry and is particularly prevalent in the
integrated circuit industry, where a number of companies and other entities
aggressively bring numerous infringement claims to assert their patent
portfolios. From time to time our subsidiaries and customers receive, and may
continue to receive in the future, notices that allege claims of infringement,
misappropriation or misuse of the intellectual property rights of third
parties. For example, in recent years, multiple claims have been made against
our subsidiaries and our customers related to standards-based technologies such
as wireless local area networking. In addition, we have certain patent licenses
with third parties that are up for renewal in calendar year 2009, and if we
cannot successfully renew these licenses, our subsidiaries and customers could
face claims of infringement. These claims could result in litigation and/or
claims for indemnification, which, in turn, could subject us to significant
liability for damages, attorneys fees and costs. Any potential intellectual
property litigation also could force us to do one or more of the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">stop selling, offering for sale, making,
having made or exporting products or using technology that contains the
allegedly infringing intellectual property;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">limit or restrict the type of work that
employees involved in such litigation may perform for us;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='19',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">pay substantial damages and/or license
fees and/or royalties to the party claiming infringement that could adversely
impact our liquidity or operating results;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">attempt to obtain or renew licenses to
the relevant intellectual property, which licenses may not be available on
reasonable terms or at all; and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">attempt to redesign those products that
contain the allegedly infringing intellectual property.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For example, one
of our subsidiaries is a named third-party defendant in a patent infringement
lawsuit against NETGEAR filed in Wisconsin by Fujitsu Limited, LG Electronics
and U.S. Philips Corp.&#160; In addition,
three of our subsidiaries filed an action in Texas against Australia&#146;s
Commonwealth Scientific and Industrial Research Organisation (&#147;CSIRO&#148;) seeking
a declaratory judgment that CSIRO&#146;s patent is invalid and unenforceable and
that our subsidiary does not infringe the CSIRO patent.&#160; Furthermore, one of our subsidiaries is a
named defendant in a patent infringement lawsuit, also in Texas, filed by
Wi-Lan, a Canadian company, which likewise alleges that its asserted patents
are infringed.&#160; Finally, one of our
subsidiaries has filed an action in California against Wi-Lan asking the court
to find that Marvell&#146;s products do not infringe certain Wi-Lan patents.&#160; We believe that our subsidiaries do not
infringe any of the asserted Fujitsu, CSIRO or Wi-Lan patents, and we will
vigorously defend ourselves in these matters.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Marvell and/or its subsidiaries are also parties to other claims and
litigation proceedings arising in the normal course of business. The impact on
us as a result of such claims and litigation cannot currently be ascertained.
Any litigation, regardless of the outcome, is time-consuming and expensive to
resolve and can divert management time and attention. There can be no assurance
that these matters will be resolved in a manner that is not adverse to our
business, financial condition, results of operations or cash flows.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our intellectual property indemnification practices may
adversely impact our business.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Some of our
contracts require our subsidiaries to indemnify customers under certain
circumstances for various costs and damages of intellectual property
infringement. This practice may subject our subsidiaries to significant
indemnification claims by our customers or others for the payment of legal
expenses and damages should a court find infringement. In the past, our
subsidiaries have received notice from customers informing them that they have
received allegations from certain patent holders that the inclusion of our
chipsets into our customer&#146;s products requires the payment of patent license
fees. We cannot assure you that such claims will not be pursued or that these
claims, if pursued, would not harm our business. </font><font size="2" style="font-size:10.0pt;">&#160;</font><font size="2" style="font-size:10.0pt;">For example, customers have requested our subsidiaries
to indemnify them in connection with a patent infringement lawsuits filed in
Texas by CSIRO. Similarly, certain customers have asked one of our subsidiaries
to indemnify them in connection with patent infringement lawsuits filed in
Texas by Wi-Lan.&#160; In addition, NETGEAR
has filed suit against one of our subsidiaries in Wisconsin demanding that its
component suppliers, including one of our subsidiaries, indemnify NETGEAR for
damages stemming from the patent lawsuit filed by Fujitsu.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">We are incorporated
in Bermuda, and, as a result, it may not be possible for our shareholders to
enforce civil liability provisions of the securities laws of the United States.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are organized under the laws of Bermuda. As a result, it may not be
possible for our shareholders to effect service of process within the United
States upon us, or to enforce against us in United States courts judgments
based on the civil liability provisions of the securities laws of the United
States. Most of our executive officers and directors are residents of the
United States. However, there is significant doubt as to whether the courts of
Bermuda would recognize or enforce judgments of United States courts obtained
against us or our directors or officers based on the civil liability provisions
of the securities laws of the United States or any state or hear actions
brought in Bermuda against us or those persons based on those laws. The United
States and Bermuda do not currently have a treaty providing for the reciprocal
recognition and enforcement of judgments in civil and commercial matters.
Therefore, a final judgment for the payment of money rendered by any federal or
state court in the United States based on civil liability, whether or not based
solely on United States federal or state securities laws, would not be
automatically enforceable in Bermuda.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='20',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our Bye-laws
contain a waiver of claims or rights of action by our shareholders against our
officers and directors, which will severely limit our shareholders&#146; right to
assert a claim against our officers and directors under Bermuda law.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Bye-laws contain a broad waiver by our shareholders of any claim or
right of action, both individually and on our behalf, against any of our
officers and directors. The waiver applies to any action taken by an officer or
director, or the failure of an officer or director to take any action, in the
performance of his or her duties with or for us, other than with respect to any
matter involving any fraud or dishonesty on the part of the officer or
director. This waiver will limit the rights of our shareholders to assert
claims against our officers and directors unless the act complained of involves
actual fraud or dishonesty. Thus, so long as acts of business judgment do not
involve actual fraud or dishonesty, they will not be subject to shareholder
claims under Bermuda law. For example, shareholders will not have claims against
officers and directors for a breach of trust, unless the breach rises to the
level of actual fraud or dishonesty.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Tax benefits we
receive may be terminated or reduced in the future, which would increase our
costs.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under current Bermuda law, we are not subject to tax on our income and
capital gains. We have obtained from the Minister of Finance of Bermuda under
the Exempt Undertakings Tax Protection Act 1966, as amended, an undertaking
that, in the event that Bermuda enacts any legislation imposing tax computed on
income and capital gains, those taxes should not apply to us until March&nbsp;28,
2016.&nbsp; However, it is possible that this exemption would not be extended
beyond that date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Economic Development Board of Singapore granted Pioneer Status to our wholly-owned
subsidiary in Singapore in July&nbsp;1999. Initially, this tax exemption was to
expire after ten years, but the Economic Development Board in June&nbsp;2006
agreed to extend the term to fifteen&nbsp;years. As a result, we anticipate
that a significant portion of the income we earn in Singapore during this
period will be exempt from the Singapore income tax. We are required to meet
several requirements as to investment, headcount and activities in Singapore to
retain this status. If our Pioneer Status is terminated early, our financial
results could be harmed.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Israeli government has granted Approved Enterprise Status to two of our
wholly-owned subsidiaries in Israel, which provides a tax holiday on
undistributed income derived from operations within certain &#147;development
regions&#148; in Israel. In order to maintain our qualification, we must continue to
meet specified conditions, including the making of investments in fixed assets
in Israel. As our tax holidays expire, we expect that we will start paying
income tax on our operations within these development regions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During fiscal 2007, our Switzerland subsidiary received from both the Swiss
Federal Department of Economy and the Vaud Cantonal Tax Administration a
ten-year tax holiday on design and research centre and wafer supply trading
activity revenues earned in Switzerland.&nbsp; Each jurisdiction has separate
requirements that need to be met such as the ten-year business requirement and
investment in head count, intellectual property, office equipment, software and
other expense items.&nbsp; If the requirements are not met, there would be tax
dollars to be paid which may affect our financial results.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Our Bye-laws
contain provisions that could delay or prevent a change in corporate control,
even if the change in corporate control would benefit our shareholders.</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Bye-laws contain change in corporate control provisions, which
include:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">authorizing the issuance of preferred
stock without shareholder approval;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">providing for a classified board of
directors with staggered, three-year terms; and</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">requiring a vote of two-thirds of the
outstanding shares to approve any change of corporate control.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These changes in corporate control provisions could make it more
difficult for a third-party to acquire us, even if doing so would be a benefit
to our shareholders.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='21',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">USE OF PROCEEDS<a name="UseOfProceeds_115236"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will not receive any
of the proceeds from the sale of the Shares.&#160;
All proceeds from the sale of the Shares will be for the account of the
Selling Shareholders.&#160; See &#147;Selling
Shareholders&#148; and &#147;Plan of Distribution&#148; described below.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SELLING SHAREHOLDERS<a name="SellingShareholders_115239"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Shares were issued or
are issuable to the Selling Shareholders upon vesting of stock unit awards
granted under our Amended and Restated 1995 Stock Option Plan and pursuant to
the forms of Stock Unit Agreement and Notice of Stock Unit Awards for use
thereunder.&#160; Our registration of the
Shares does not necessarily mean that the Selling Shareholders will sell all or
any of the Shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following table lists
certain information concerning the Selling Shareholders, including the number of
common shares beneficially owned by the Selling Shareholders as of May&nbsp;31,
2008 and the number of Shares that the Selling Shareholders may sell under this
prospectus.&#160; Beneficial ownership is
determined in accordance with the rules&nbsp;and regulations of the SEC.&#160; In computing the number of common shares
beneficially owned by a person and the percentage ownership of that person,
common shares subject to options held by that person that are currently
exercisable or exercisable within 60 days of May&nbsp;31, 2008 are deemed
outstanding, as well as stock units that may vest within 60 days of May&nbsp;31,
2008.&#160; These common shares, however, are
not deemed outstanding for the purposes of computing the percentage ownership
of any other person.&#160; Except as indicated
in the footnotes to this table and pursuant to applicable community property
laws, to our knowledge, each Selling Shareholder has sole voting and investment
power with respect to the common shares listed in the table below.&#160; None of the Selling Shareholders is an officer
or director of us.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">
 <tr>
  <td width="21%" valign="bottom" style="padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="24%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Beneficial&nbsp;Ownership&nbsp;of<br>
  Common&nbsp;Shares&nbsp;Prior&nbsp;to<br>
  Offering&nbsp;(1)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="21%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:21.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number&nbsp;of&nbsp;Common&nbsp;Shares<br>
  Offered</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="24%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Beneficial&nbsp;Ownership<br>
  of&nbsp;Common&nbsp;Shares<br>
  After&nbsp;Offering&nbsp;(1)&nbsp;(2)</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Selling&nbsp;Shareholders</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="9%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Percent</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="21%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:21.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="8%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Percent</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Selling Shareholders (3)(4)</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:13.22%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">337,295</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:9.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:21.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">169,277</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:13.52%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">168,018</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.02%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:8.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-decoration:underline;text-indent:0in;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="691" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:518.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Less than one percent.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Applicable
  percentage ownership is based on 604,121,515 common shares outstanding.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assumes that all
  of the Shares held by each Selling Shareholder and being offered under this
  prospectus are sold, and that no Selling Shareholder will acquire additional
  common shares before the completion of this offering.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Represents
  Selling Shareholders who collectively hold less than 1% of the common shares
  outstanding prior to the offering. Includes the following 25 named
  non-affiliate persons, each of whom holds or may be issued at least one
  thousand (1,000) Shares: Lixin Nie, Honjie Guan, Baihong Fang, Hok-Lam Kwan,
  Shu-Shin Chin, Chengyun Gao, Ching-Han Tsai, Shivappa Kukanur, Ping Gao, Roy
  Neville, Jagadish Venkataraman, Todd Sepke, Hatem Yazbek, Loc Nguyen,
  Xiaodong Wang, Ruoxin Jiang, Ravishankar Kalyanaraman, Zhihong Yu, Lihan
  Chang, Hai-Ying Yen, Jhao-Jyun Chiang, David Borland, Gang Liang, Erez
  Schwartz and David Ben-Eli.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Also includes
  approximately 19 unnamed non-affiliate persons, each of whom holds or may be
  issued less than one thousand (1,000) Shares and each of whom may sell up to
  such amount using this prospectus.</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31" valign="top" style="padding:0in .7pt 0in .7pt;width:23.2pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font></p>
  </td>
  <td width="13" valign="bottom" style="padding:0in .7pt 0in .7pt;width:9.9pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="678" valign="top" style="padding:0in .7pt 0in .7pt;width:508.3pt;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Includes
  (a)&nbsp;267,813 common shares that are exercisable as of 60 days of
  May&nbsp;31, 2008 and (b)&nbsp;restricted stock units granted to employees to
  receive 3,429&nbsp;common shares as of 60&nbsp;days of May&nbsp;31, 2008.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may amend or
supplement this prospectus from time to time in the future to update or change
this list of the Selling Shareholders and Shares which may be offered and sold.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='22',FILE='C:\JMS\105571\08-17005-1\task2994247\17005-1-ba-03.htm',USER='105571',CD='Jun 19 16:26 2008' -->



<br clear="all" style="page-break-before:always;">
<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PLAN OF DISTRIBUTION<a name="PlanOfDistribution_114958"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are registering the Shares previously issued and
issuable to the Selling Shareholders to permit the resale of these Shares by
the Selling Shareholders from time to time after the date of this
prospectus.&#160; We will not receive any of
the proceeds from the sale by the Selling Shareholders of the Shares.&#160; We will bear all fees and expenses incident
to our obligation to register the Shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Selling Shareholders may sell all or a portion of
the common shares beneficially owned by them and the Shares offered hereby from
time to time directly or through broker-dealers or agents.&#160; The Selling Shareholders may also sell all or
a portion of the Shares from time to time in the over-the-counter market and
that sales will be made at prices prevailing in the public market at the times
of such sales.&#160; Further, the Selling
Shareholders may choose to dispose of the Shares by gift to a third party or as
a donation to a charitable or other non-profit entity.&#160; In connection with any sales, the Selling
Shareholders and any brokers participating in such sales may be deemed to be
underwriters within the meaning of the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any broker-dealer participating in such transactions
as agent may receive commissions from the Selling Shareholders (and, if such
broker acts as agent for the purchaser of such Shares, from such
purchaser).&#160; Usual and customary
brokerage fees will be paid by the Selling Shareholders.&#160; Broker-dealers may agree with the Selling
Shareholders to sell a specified number of Shares at a stipulated price per
share, and, to the extent such a broker-dealer is unable to do so acting as
agent for the Selling Shareholders, to purchase as principal any unsold Shares
at the price required to fulfill the broker-dealer commitment to the Selling
Shareholders.&#160; Broker-dealers who acquire
Shares as principal may thereafter resell such Shares from time to time in
transactions (which may involve crosses and block transactions and which may
involve sales to and through other broker-dealers, including transactions of
the nature described above) in the over the counter market, in negotiated
transactions or otherwise at market prices prevailing at the time of sale or at
negotiated prices, and in connection with such resales may pay to or receive
from the purchasers of such Shares commissions computed as described above.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under applicable rules&nbsp;and regulations under the
Exchange Act, any person engaged in the distribution of the resale shares may
not simultaneously engage in market making activities with respect to the
common shares for the applicable restricted period, as defined in
Regulation&nbsp;M, prior to the commencement of the distribution. In addition,
the Selling Shareholders will be subject to applicable provisions of the
Exchange Act and the rules&nbsp;and regulations thereunder, including
Regulation&nbsp;M, which may limit the timing of purchases and sales of the
common shares by the Selling Shareholders or any other person.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any commissions paid or any discounts or concessions
allowed to any such broker-dealers, and, if any such broker-dealers purchase
Shares as principal, any profits received on the resale of such Shares, may be
deemed to be underwriting discounts and commissions under the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If applicable, upon our being notified by the Selling
Shareholders that any material arrangement has been entered into with a
broker-dealer for the sale of the Shares through a cross or block trade, a
supplemental prospectus will be filed under Rule&nbsp;424(c)&nbsp;under the
Securities Act, setting forth the name of the participating broker-dealer(s),
the number of the Shares involved, the price at which such Shares were sold by
the Selling Shareholders, the commissions paid or discounts or concessions
allowed by the Selling Shareholders to such broker-dealer(s), and, where
applicable, that such broker-dealer(s)&nbsp;did not conduct any investigation
to verify the information set out in this prospectus.&#160; Any securities covered by this prospectus
that qualify for sale pursuant to Rule&nbsp;144 under the Securities Act may be
sold under that Rule&nbsp;rather than pursuant to this prospectus.&#160; There can be no assurance that the Selling
Shareholders will sell any or all of the Shares offered hereunder.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">* *
* * *</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='23',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEGAL MATTERS<a name="LegalMatters_115006"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The validity of the Shares offered hereby will be
passed upon by Appleby, our Bermuda counsel.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPERTS<a name="Experts_115007"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The consolidated financial statements and management&#146;s
assessment of the effectiveness of internal control over financial reporting
(which is included in Management&#146;s Report on Internal Control over Financial
Reporting) incorporated in this Prospectus by reference to the Annual Report on
Form&nbsp;10-K for the year ended February&nbsp;2, 2008 have been so
incorporated in reliance on the report (which contains an adverse opinion on
the effectiveness of internal control over financial reporting) of
PricewaterhouseCoopers LLP, an independent registered public accounting firm,
given on the authority of said firm as experts in auditing and accounting.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The statements of assets
to be acquired and liabilities to be assumed of the Hand Held Products Group as
of December&nbsp;31, 2005 and December&nbsp;25, 2004 and the related statements
of net revenues and direct expenses for each of the three years in the period
ended December&nbsp;31, 2005 appearing in our Current Report on Form&nbsp;8-K/A
dated July&nbsp;2, 2007 have been audited by Ernst&nbsp;&amp; Young LLP,
independent auditors, as set forth in their report thereon, included therein,
and incorporated herein by reference. Such financial statements are incorporated
herein by reference in reliance upon such report given on the authority of such
firm as experts in accounting and auditing.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INFORMATION INCORPORATED BY REFERENCE<a name="InformationIncorporatedByReferenc_115013"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following documents
filed with the SEC are hereby incorporated by reference in this prospectus:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Annual Report on Form&nbsp;10-K for the fiscal year ended February&nbsp;2,
2008, filed with the SEC on March&nbsp;28, 2008<font face="Times New Roman">.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Quarterly Report on Form&nbsp;10-Q for the
quarterly period ended May&nbsp;3, 2008, filed with the SEC on June&nbsp;6,
2008.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Proxy Statement filed with the SEC on June&nbsp;2, 2008.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Current Reports on Form&nbsp;8-K filed with the SEC on February&nbsp;6, 2008, March&nbsp;6,
2008, April&nbsp;4, 2008, May&nbsp;2, 2008, May&nbsp;8, 2008, May&nbsp;23,
2008, May&nbsp;30, 2008 and June&nbsp;2, 2008 (two filings made).&#160; With respect to such Current Reports on Form&nbsp;8-K,
we specifically exclude from incorporation such information that has been
furnished and not filed pursuant to Item 2.02, Item 7.01 and/or Item 9.01.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Audited
statements of assets to be acquired and liabilities to be assumed as of December
31, 2005 and December 25, 2004 and the related statements of net revenues and direct
expenses for the years ended December 31, 2005, December 25, 2004 and December 27,
2003 for the Hands Held Products Group and the related notes thereto and Report
of Independent Auditors thereon included in our Current Report on Form 8-K/A filed
with the SEC on&#160; July 2, 2007.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unaudited
statements of assets to be acquired and liabilities to be assumed as of July 1,
2006 and the related statements of net revenues and direct expenses for the six
months ended July 1, 2006 and July 2, 2005 for the Hands Held Products Group and
the related notes thereto included in our Current Report on Form 8-K/A filed with
the SEC on July 2, 2007.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='24',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
description of our common shares contained in our Registration Statement on Form&nbsp;8-A
as filed with the SEC on June&nbsp;22, 2000 pursuant to Section&nbsp;12(g)&nbsp;of
the Exchange Act.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
reports and other documents subsequently filed by us pursuant to Sections&nbsp;13(a),
13(c), 14 and 15(d)&nbsp;of the Exchange Act after the date of this prospectus
and prior to the termination of this offering (excluding any portions thereof
furnished but not filed under applicable rules&nbsp;and regulations) shall be
deemed to be incorporated by reference in this prospectus and to be part hereof
from the date of filing of such reports and other documents.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We hereby undertake to provide without charge to each
person, including any beneficial owner, to whom a copy of this prospectus is
delivered, upon written or oral request of any such person, a copy of any and
all of the information that has been or may be incorporated by reference in
this prospectus, other than exhibits to such documents.&#160; Requests for such copies should be directed
to our Legal Department, Marvell Semiconductor,&nbsp;Inc., 5488 Marvell Lane,
Santa Clara, California 95054.&#160; Our
telephone number at that location is (408) 222-2500.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We file annual, quarterly and current reports and
other information with the SEC.&#160; You may
read and copy and documents we file at the SEC&#146;s Public Reference Room&nbsp;at
100 F Street, Washington, D.C. 20549.&#160;
You may also obtain copies of the documents at prescribed rates by
writing to the Public Reference Section&nbsp;of the SEC at
100&nbsp;F&nbsp;Street, N.E., Washington,&nbsp;D.C. 20549. Please call the SEC
at 1-800-SEC-0330 for further information on the operation of the public
reference facilities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Internet address is www.marvell.com and the
investor relations section of our website is located at http://www.marvell.com/investors.&#160; We make available free of charge, on or
through the investor relations section of our website, annual reports on Form&nbsp;10-K,
quarterly reports on Form&nbsp;10-Q, current reports on Form&nbsp;8-K and
amendments to those reports filed or furnished pursuant to Section&nbsp;13(a)&nbsp;or
Section&nbsp;15(d)&nbsp;of the Exchange Act as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the SEC.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should rely only on the information contained or
incorporated by reference in this prospectus and in any accompanying prospectus
supplement.&#160; We have not authorized
anyone to provide you with information different from that contained in this
prospectus.&#160; The Shares offered under
this prospectus are offered only in jurisdictions where offers and sales are
permitted.&#160; The information contained in
this prospectus is accurate only as of the date of this prospectus, regardless
of the time of delivery of this prospectus or any sale of the Shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus constitutes a part of a Registration
Statement filed by us with the SEC under the Securities Act.&#160; This prospectus does not contain all of the
information set forth in the Registration Statement, certain parts of which are
omitted in accordance with the rules&nbsp;and regulations of the SEC.&#160; For further information about us and the
Shares, reference is hereby made to the Registration Statement.&#160; The Registration Statement may be inspected
at the public reference facilities maintained by the SEC at the addresses set
forth in the preceding paragraph.&#160;
Statements contained herein concerning any document filed as an exhibit
are not necessarily complete, and, in each instance, reference is made to the
copy of such document filed as an exhibit to the Registration Statement.&#160; Each such statement is qualified in its
entirety by such reference.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * * *</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='25',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No person is authorized
in connection with any offering made by this prospectus to give any information
or to make any representations not contained in this prospectus, and, if given
or made, such information or representations must not be relied upon as having
been authorized by us, any Selling Shareholders or by any other person.&#160; This prospectus does not constitute an offer
to sell or a solicitation of an offer to buy any security other than the Shares
offered hereby, nor does it constitute an offer to sell or a solicitation of an
offer to buy any of the Shares offered hereby to any person in any jurisdiction
in which it is unlawful to make such an offer or solicitation.&#160; Neither the delivery of this prospectus nor
any sale of or offer to sell the Shares made hereunder shall under any
circumstances create any implication that there has been no change in our affairs
since the date hereof or that the information contained herein is correct as of
any time subsequent to the date hereof.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE
OF CONTENTS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="45%" style="border-collapse:collapse;width:45.0%;">
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:19.44%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Page</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#MarvellTechnologyGroupLtd__221904">Marvell Technology
  Group Ltd.</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ForwardlookingStatements_115141" title="Click to goto ">Forward-Looking Statements</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RiskFactors_115145" title="Click to goto ">Risk Factors</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_115236" title="Click to goto ">Use of Proceeds</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#SellingShareholders_115239" title="Click to goto ">Selling
  Shareholders</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PlanOfDistribution_114958" title="Click to goto ">Plan of Distribution</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#LegalMatters_115006" title="Click to goto ">Legal
  Matters</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Experts_115007" title="Click to goto ">Experts</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
 <tr>
  <td width="75%" valign="top" style="padding:0in 0in 0in 0in;width:75.56%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#InformationIncorporatedByReferenc_115013" title="Click to goto ">Information Incorporated by Reference</a></font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt 2.25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">169,277 Common Shares</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MARVELL TECHNOLOGY GROUP LTD.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROSPECTUS</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;20, 2008</font></p>

<div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REGISTRATION
STATEMENT ON FORM&nbsp;S-8/S-3</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PART&nbsp;II</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INFORMATION
REQUIRED IN REGISTRATION STATEMENT</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 3.&#160; Incorporation of Documents by Reference.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following
documents and information previously filed with the SEC by us are hereby
incorporated by reference in this Registration Statement:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Annual Report on Form&nbsp;10-K for the fiscal year ended February&nbsp;2,
2008, filed with the SEC on March&nbsp;28, 2008<font face="Times New Roman">.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Quarterly Report on Form&nbsp;10-Q for the
quarterly period ended May&nbsp;3, 2008, filed with the SEC on June&nbsp;6,
2008.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Proxy Statement filed with the SEC on June&nbsp;2, 2008.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Our
Current Reports on Form&nbsp;8-K filed with the SEC on February&nbsp;6, 2008, March&nbsp;6,
2008, April&nbsp;4, 2008, May&nbsp;2, 2008, May&nbsp;8, 2008, May&nbsp;23,
2008, May&nbsp;30, 2008 and June&nbsp;2, 2008 (two filings made).&#160; With respect to such Current Reports on Form&nbsp;8-K,
we specifically exclude from incorporation such information that has been
furnished and not filed pursuant to Item 2.02, Item 7.01 and/or Item 9.01.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Audited
statements of assets to be acquired and liabilities to be assumed as of
December 31, 2005 and December 25, 2004 and the related statements of net
revenues and direct expenses for the years ended December 31, 2005, December
25, 2004 and December 27, 2003 for the Hands Held Products Group and the
related notes thereto and Report of Independent Auditors thereon included in our
Current Report on Form 8-K/A filed with the SEC on&#160; July 2, 2007.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unaudited
statements of assets to be acquired and liabilities to be assumed as of July 1,
2006 and the related statements of net revenues and direct expenses for the six
months ended July 1, 2006 and July 2, 2005 for the Hands Held Products Group
and the related notes thereto included in our Current Report on Form 8-K/A
filed with the SEC on July 2, 2007.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
description of our common shares contained in our Registration Statement on Form&nbsp;8-A
as filed with the SEC on June&nbsp;22, 2000 pursuant to Section&nbsp;12(g)&nbsp;of
the Exchange Act.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All reports and other documents subsequently filed by
us pursuant to Sections&nbsp;13(a), 13(c), 14 and 15(d)&nbsp;of the Exchange
Act after the date of this prospectus and prior to the termination of this
offering (excluding any portions thereof furnished but not filed under
applicable rules&nbsp;and regulations) shall be deemed to be incorporated by
reference in this prospectus and to be part hereof from the date of filing of
such reports and other documents.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 4.&#160; Description of Securities.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 5.&#160; Interests of Named Experts and Counsel.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-1</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='II-1',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 6.&#160; Indemnification of Directors and Officers.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Set forth below is a description of certain provisions
of the Companies Act of 1981 of Bermuda (the &#147;Companies Act&#148;), our Memorandum
of Association, as presently in effect (the &#147;Memorandum of Association&#148;), and
our Bye-laws (the &#147;Bye-laws&#148;), as such provisions relate to the indemnification
of our directors and officers.&#160; This
description is intended only as a summary and is qualified in its entirety by
reference to the applicable provisions of the Companies Act, the Memorandum of
Association and the Bye-laws, which are incorporated herein by reference.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Companies Act permits us to indemnify its
directors or officers in their capacity as such in respect of any loss arising
or liability attaching to them by virtue of any rule&nbsp;of law in respect of
any negligence, default, breach of duty or breach of trust of which a director
or officer may be guilty in relation to us other than in respect of his own
fraud or dishonesty.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Bye-laws provide that every director, officer,
committee member and any resident representative be indemnified against any
liabilities, loss, damage or expense incurred or suffered in such capacity, subject
to limitations imposed in the Companies Act.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Bye-laws further provide that we and each
shareholder agree to waive any claim or right of action against any director or
officer, in respect of any failure to act or any action taken by such director
or officer in the performance of his duties with or for us.&#160; The waiver does not extend to claims arising
under United States federal securities laws or any claims or rights of action
arising from the fraud or dishonesty of the director or officer.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have agreed to indemnify certain of our current and
former directors, officers and employees and our subsidiary Marvell
Semiconductor,&nbsp;Inc. for reasonable costs and expenses incurred by such
individuals in connection with certain civil actions and governmental
investigations relating to our historic stock option granting practices.&#160; Our agreement to pay reasonable fees and
costs is subject to each individual&#146;s agreement to reimburse us in the event
that it is subsequently determined that the individual is not entitled to
indemnification under our Bye-laws or applicable law.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have entered into indemnification agreements with
certain officers that may be sufficiently broad to permit indemnification of
such officers for liabilities (including reimbursement of expenses incurred)
arising under the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7.&#160; Exemption from Registration Claimed.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With</font><font size="1" style="font-size:8.0pt;">  </font>respect<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>restricted<font size="1" style="font-size:8.0pt;">  </font>common<font size="1" style="font-size:8.0pt;">  </font>shares<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>be<font size="1" style="font-size:8.0pt;">  </font>reoffered<font size="1" style="font-size:8.0pt;">  </font>or<font size="1" style="font-size:8.0pt;">  </font>resold<font size="1" style="font-size:8.0pt;">  </font>pursuant<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>this<font size="1" style="font-size:8.0pt;">  </font>Registration<font size="1" style="font-size:8.0pt;">  </font>Statement,<font size="1" style="font-size:8.0pt;">  </font>we<font size="1" style="font-size:8.0pt;">  </font>believe<font size="1" style="font-size:8.0pt;">  </font>that<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>issuance<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>such<font size="1" style="font-size:8.0pt;">  </font>shares<font size="1" style="font-size:8.0pt;">  </font>is<font size="1" style="font-size:8.0pt;">  </font>deemed<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>be<font size="1" style="font-size:8.0pt;">  </font>exempt<font size="1" style="font-size:8.0pt;">  </font>from<font size="1" style="font-size:8.0pt;">  </font>registration<font size="1" style="font-size:8.0pt;">  </font>in<font size="1" style="font-size:8.0pt;">  </font>reliance<font size="1" style="font-size:8.0pt;">  </font>upon<font size="1" style="font-size:8.0pt;">  </font>Section<font size="1" style="font-size:8.0pt;">  </font>2(a)(3)<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>Securities<font size="1" style="font-size:8.0pt;">  </font>Act.<font size="1" style="font-size:8.0pt;">&#160; </font>The<font size="1" style="font-size:8.0pt;">  </font>common<font size="1" style="font-size:8.0pt;">  </font>shares<font size="1" style="font-size:8.0pt;">  </font>were<font size="1" style="font-size:8.0pt;">  </font>issued<font size="1" style="font-size:8.0pt;">  </font>or<font size="1" style="font-size:8.0pt;">  </font>are<font size="1" style="font-size:8.0pt;">  </font>issuable<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>selling<font size="1" style="font-size:8.0pt;">  </font>shareholders<font size="1" style="font-size:8.0pt;">  </font>upon<font size="1" style="font-size:8.0pt;">  </font>vesting<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>&#147;stock<font size="1" style="font-size:8.0pt;">  </font>unit&#148;<font size="1" style="font-size:8.0pt;">  </font>awards<font size="1" style="font-size:8.0pt;">  </font>granted<font size="1" style="font-size:8.0pt;">  </font>under<font size="1" style="font-size:8.0pt;">  </font>our<font size="1" style="font-size:8.0pt;">  </font>Amended<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>Restated<font size="1" style="font-size:8.0pt;">  </font>1995<font size="1" style="font-size:8.0pt;">  </font>Stock<font size="1" style="font-size:8.0pt;">  </font>Option<font size="1" style="font-size:8.0pt;">  </font>Plan<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>pursuant<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>forms<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>Stock<font size="1" style="font-size:8.0pt;">  </font>Unit<font size="1" style="font-size:8.0pt;">  </font>Agreement<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>Notice<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>Stock<font size="1" style="font-size:8.0pt;">  </font>Unit<font size="1" style="font-size:8.0pt;">  </font>Awards<font size="1" style="font-size:8.0pt;">  </font>for<font size="1" style="font-size:8.0pt;">  </font>use<font size="1" style="font-size:8.0pt;">  </font>thereunder.<font size="1" style="font-size:8.0pt;">&#160; </font>The<font size="1" style="font-size:8.0pt;">  </font>stock<font size="1" style="font-size:8.0pt;">  </font>unit<font size="1" style="font-size:8.0pt;">  </font>awards<font size="1" style="font-size:8.0pt;">  </font>were<font size="1" style="font-size:8.0pt;">  </font>granted<font size="1" style="font-size:8.0pt;">  </font>for<font size="1" style="font-size:8.0pt;">  </font>no<font size="1" style="font-size:8.0pt;">  </font>consideration<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>represent<font size="1" style="font-size:8.0pt;">  </font>our<font size="1" style="font-size:8.0pt;">  </font>unfunded<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>unsecured<font size="1" style="font-size:8.0pt;">  </font>promise<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>issue<font size="1" style="font-size:8.0pt;">  </font>our<font size="1" style="font-size:8.0pt;">  </font>common<font size="1" style="font-size:8.0pt;">  </font>shares<font size="1" style="font-size:8.0pt;">  </font>at<font size="1" style="font-size:8.0pt;">  </font>a<font size="1" style="font-size:8.0pt;">  </font>future<font size="1" style="font-size:8.0pt;">  </font>date.<font size="1" style="font-size:8.0pt;">&#160; </font>When<font size="1" style="font-size:8.0pt;">  </font>a<font size="1" style="font-size:8.0pt;">  </font>stock<font size="1" style="font-size:8.0pt;">  </font>unit<font size="1" style="font-size:8.0pt;">  </font>award<font size="1" style="font-size:8.0pt;">  </font>vests,<font size="1" style="font-size:8.0pt;">  </font>we<font size="1" style="font-size:8.0pt;">  </font>settle<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>award<font size="1" style="font-size:8.0pt;">  </font>by<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>issuance<font size="1" style="font-size:8.0pt;">  </font>to<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>award<font size="1" style="font-size:8.0pt;">  </font>recipient<font size="1" style="font-size:8.0pt;">  </font>for<font size="1" style="font-size:8.0pt;">  </font>no<font size="1" style="font-size:8.0pt;">  </font>consideration<font size="1" style="font-size:8.0pt;">  </font>with<font size="1" style="font-size:8.0pt;">  </font>one<font size="1" style="font-size:8.0pt;">  </font>common<font size="1" style="font-size:8.0pt;">  </font>share<font size="1" style="font-size:8.0pt;">  </font>for<font size="1" style="font-size:8.0pt;">  </font>each<font size="1" style="font-size:8.0pt;">  </font>vested<font size="1" style="font-size:8.0pt;">  </font>stock<font size="1" style="font-size:8.0pt;">  </font>unit.<font size="1" style="font-size:8.0pt;">&#160; </font>We<font size="1" style="font-size:8.0pt;">  </font>believe<font size="1" style="font-size:8.0pt;">  </font>that,<font size="1" style="font-size:8.0pt;">  </font>in<font size="1" style="font-size:8.0pt;">  </font>accordance<font size="1" style="font-size:8.0pt;">  </font>with<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>rules<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>regulations<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>other<font size="1" style="font-size:8.0pt;">  </font>guidance<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>SEC,<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>grant<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>stock<font size="1" style="font-size:8.0pt;">  </font>unit<font size="1" style="font-size:8.0pt;">  </font>awards<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>issuance<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>common<font size="1" style="font-size:8.0pt;">  </font>shares<font size="1" style="font-size:8.0pt;">  </font>upon<font size="1" style="font-size:8.0pt;">  </font>settlement<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>awards<font size="1" style="font-size:8.0pt;">  </font>do<font size="1" style="font-size:8.0pt;">  </font>not<font size="1" style="font-size:8.0pt;">  </font>constitute<font size="1" style="font-size:8.0pt;">  </font>a<font size="1" style="font-size:8.0pt;">  </font>&#147;sale&#148;<font size="1" style="font-size:8.0pt;">  </font>for<font size="1" style="font-size:8.0pt;">  </font>purposes<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>Securities<font size="1" style="font-size:8.0pt;">  </font>Act<font size="1" style="font-size:8.0pt;">  </font>and<font size="1" style="font-size:8.0pt;">  </font>therefore<font size="1" style="font-size:8.0pt;">  </font>are<font size="1" style="font-size:8.0pt;">  </font>exempt<font size="1" style="font-size:8.0pt;">  </font>from<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>registration<font size="1" style="font-size:8.0pt;">  </font>requirements<font size="1" style="font-size:8.0pt;">  </font>of<font size="1" style="font-size:8.0pt;">  </font>the<font size="1" style="font-size:8.0pt;">  </font>Securities<font size="1" style="font-size:8.0pt;">  </font>Act.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-2</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='II-2',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 8.&#160; Exhibits.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="36%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:48.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Incorporated
  by reference herein</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:36.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="30%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:30.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Filing</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Date</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.20</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended
  and Restated 1995 Stock Option Plan</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quarterly Report on
  Form&nbsp;10-Q for the period ended August&nbsp;2, 2003 (File
  No.&nbsp;000-30877) as Exhibit&nbsp;10.20</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;15, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.34</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of
  Notice of Stock Unit Award and Form&nbsp;of Stock Unit Agreement</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Annual Report on
  Form&nbsp;10-K for the fiscal year ended January&nbsp;27, 2007 (File
  No.&nbsp;000-30877) as Exhibit&nbsp;10.34</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;2, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion
  of counsel</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of counsel (contained in Exhibit&nbsp;5.1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Consent
  of Ernst&nbsp;&amp; Young LLP, </font>Independent Auditors</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:10.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.64%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power
  of Attorney (included as part of the signature page&nbsp;of this registration
  statement)</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:30.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.&#160; Undertakings.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The
undersigned registrant hereby undertakes:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;To file, during
any period in which offers or sales are being made, a post-effective amendment
to this Registration Statement:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;to include any
prospectus required by Section&nbsp;10(a)(3)&nbsp;of the Securities Act;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;to reflect in
the prospectus any facts or events arising after the effective date of this
Registration Statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in this Registration Statement;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;to include any
material information with respect to the plan of distribution not previously
disclosed in this Registration Statement or any material change to the
information in this Registration Statement;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided, however, that
paragraphs (a)(1)(i)&nbsp;and (a)(1)(ii)&nbsp;above do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the SEC
by registrant pursuant to Section&nbsp;13 or Section&nbsp;15(d)&nbsp;of the Exchange
Act that are incorporated by reference in this Registration Statement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&nbsp;That, for the
purpose of determining any liability under the Securities Act, each
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&nbsp;To remove from
registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&nbsp;That,
for the purpose of determining liability under the Securities Act of 1933 to
any purchaser:</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;Each
prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(3)&nbsp;shall
be deemed to be part of the registration statement as of the date the filed
prospectus was deemed part of and included in the registration
statement;&nbsp;and</font></p>

<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-3</font></p>

<div style="background:white;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='II-3',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="background:white;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;Each
prospectus required to be filed pursuant to Rule&nbsp;424(b)(2), (b)(5), or (b)(7)&nbsp;as
part of a registration statement in reliance on Rule&nbsp;430B relating to an
offering made pursuant to Rule&nbsp;415(a)(1)(i), (vii), or (x)&nbsp;for the
purpose of providing the information required by section&nbsp;10(a)&nbsp;of the
Securities Act of 1933 shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is
first used after effectiveness or the date of the first contract of sale of
securities in the offering described in the prospectus. As provided in Rule&nbsp;430B,
for liability purposes of the issuer and any person that is at that date an
underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement
to which that prospectus relates, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof. <i>Provided,</i>  <i>however</i>,
that no statement made in a registration statement or prospectus that is part
of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of
contract of sale prior to such effective date, supersede or modify any
statement that was made in the registration statement or prospectus that was
part of the registration statement or made in any such document immediately
prior to such effective date.</font></p>

<p style="background:white;margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)&nbsp;That, for the
purpose of determining liability of the registrant under the Securities Act to
any purchaser in the initial distribution of the securities:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned
registrant undertakes that in a primary offering of securities of the
registrant pursuant to this Registration Statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the registrant will be a seller to the purchaser and
will be considered to offer or sell such securities to such purchaser:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;Any preliminary
prospectus or prospectus of the registrant relating to the offering required to
be filed pursuant to Rule&nbsp;424;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;Any free
writing prospectus relating to the offering prepared by or on behalf of the
Registrant or used or referred to by the undersigned registrant;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;The portion of
any other free writing prospectus relating to the offering containing material
information about the registrant or its securities provided by or on behalf of
the registrant; and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&nbsp;Any other
communication that is an offer in the offering made by the registrant to the
purchaser.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:38.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160; The undersigned registrant hereby
undertakes that, for purposes of determining any liability under the Securities
Act, each filing of the registrant&#146;s annual report pursuant to Section&nbsp;13(a)&nbsp;or
Section&nbsp;15(d)&nbsp;of the Exchange Act (and, where applicable, each filing
of an employee benefit plan&#146;s annual report pursuant to Section&nbsp;15(d)&nbsp;of
the Exchange Act) that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona
fide offering thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160; Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors,
officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion
of the SEC, such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable.&#160; In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act, and will be governed
by the final adjudication of such issue.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='II-4',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
requirements of the Securities Act, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing
on Form&nbsp;S-8/S-3 and has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Santa Clara, State of California, on this 20<sup>th</sup> day of June&nbsp;2008.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARVELL
  TECHNOLOGY GROUP LTD.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:45.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
  Sehat Sutardja</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:
  Dr.&nbsp;Sehat Sutardja</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:
  <i>President and</i>  <i>Chief
  Executive Officer</i></font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">POWER
OF ATTORNEY</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KNOW ALL PERSONS BY THESE
PRESENTS, that each person whose signature appears below hereby constitutes and
appoints Dr.&nbsp;Sehat Sutardja and George de Urioste, and each of them acting
individually, as his attorney in fact, each with full power of substitution,
for him in any and all capacities, to sign any and all amendments to this
Registration Statement on Form&nbsp;S-8/S-3, and to file the same, with
exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, hereby ratifying and confirming all that
said attorney-in-fact, or his or her substitutes, may do or cause to be done by
virtue hereof.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
requirements of the Securities Act of 1933, this Registration Statement </font>has been signed by the following persons
in the capacities and on the dates indicated.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Signature</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Title</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Date</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="44%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:44.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="19%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:19.98%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Sehat Sutardja</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman of the Board,
  President<br>
  and Chief Executive Officer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="bottom" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;20, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dr.&nbsp;Sehat Sutardja</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(<i>Principal Executive Officer)</i></font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ George de Urioste</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interim Chief Financial
  Officer<br>
  (<i>Principal Financial and Accounting
  Officer)</i></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="bottom" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;19, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">George de Urioste</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Pantas Sutardja</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director, Vice
  President, Chief Technology<br>
  Officer, Acting Chief Operating Officer and</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="bottom" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;20, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dr.&nbsp;Pantas
  Sutardja</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Research and
  Development Officer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Herbert Chang</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;20, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Herbert Chang</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Juergen Gromer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;19, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dr.&nbsp;Juergen Gromer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Arturo Krueger</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;19, 2008</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arturo Krueger</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0in 0in 0in 0in;width:19.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='II-5',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARVELL
TECHNOLOGY GROUP LTD.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REGISTRATION
STATEMENT ON FORM&nbsp;S-8/S-3</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INDEX
TO EXHIBITS</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Incorporated
  by reference herein</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:31.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Filing</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Date</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.20</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended
  and Restated 1995 Stock Option Plan</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quarterly Report on
  Form&nbsp;10-Q for the period ended August&nbsp;2, 2003 (File No.&nbsp;000-30877)
  as Exhibit&nbsp;10.20</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;15, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.34</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of
  Notice of Stock Unit Award and Form&nbsp;of Stock Unit Agreement</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Annual Report on
  Form&nbsp;10-K for the fiscal year ended January&nbsp;27, 2007 (File
  No.&nbsp;000-30877) as Exhibit&nbsp;10.34</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;2, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion
  of counsel</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of counsel (contained in Exhibit&nbsp;5.1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent
  of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Consent
  of Ernst&nbsp;&amp; Young LLP, </font>Independent Auditors</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.92%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power
  of Attorney (included as part of the signature page&nbsp;of this registration
  statement)</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:31.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\kyang\08-17005-1\task2997333\17005-1-ba-05.htm',USER='Kyangb',CD='Jun 20 14:47 2008' -->


</body>

</html>
[{"type": "S-8", "sequence": "1", "filename": "a08-17005_1s8.htm", "description": "S-8", "secsgml_size_bytes": 383251}]
{"company-data": {"conformed-name": "MARVELL TECHNOLOGY GROUP LTD", "cik": "0001058057", "assigned-sic": "3674", "irs-number": "770481679", "state-of-incorporation": "D0", "fiscal-year-end": "0131"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-151826", "film-number": "08910711"}, "business-address": {"street1": "CANON'S COURT", "street2": "22 VICTORIA STREET", "city": "HAMILTON HM 12", "state": "D0", "phone": "4412966395"}}
As filed
with the Securities and Exchange Commission on June 20, 2008
Registration No. 333 -
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8/S-3
REGISTRATION STATEMENT
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
(Including registration of shares for resale by means of a
Form S-3 Prospectus)
MARVELL
TECHNOLOGY GROUP LTD.
(Exact name of Registrant as
specified in its charter)
Bermuda
77-0481679
(State
  or other jurisdiction of incorporation)
(I.R.S. Employer Identification
  Number)
Canon's
Court
22
Victoria Street
Hamilton HM 12
Bermuda
(441) 296-6395
(Address, including zip code, and
telephone number, including area code of Registrant's principal executive
offices)
Marvell
Technology Group Ltd.
Amended and Restated 1995 Stock Option Plan
(Full title of the plan)
Eric Janofsky
Vice President
Marvell Semiconductor, Inc.
5488 Marvell Lane
Santa Clara, California 95054
(408) 222-2500
(Name, address, including zip
code, and telephone number, including area code, of agent for service)
Copy to:
Carmen
Chang, Esq.
Wilson Sonsini Goodrich &
Rosati
Professional Corporation
650 Page Mill Road
Palo Alto, CA 94304
(650) 493-9300
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a small reporting company.  See the definitions of "large accelerated
filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer
x
Accelerated filer
o
Non-accelerated filer
o
(Do not check
  if a smaller reporting company)
Smaller reporting company
o
Calculation of Registration Fee
Title of Securities to
be Registered
Amount
to be
Registered(1)
Proposed
Maximum
Offering Price
Per Share(2)
Proposed
Maximum
Aggregate
Offering Price
Amount of
Registration
Fee(3)
Common shares,
  par value $0.002 per share, issued or to be issued pursuant to stock units
  granted under the Marvell Technology Group Ltd. Amended and Restated 1995
  Stock Option Plan
169,277 shares
$16.475
$2,788,838.58
$110
(1)
Pursuant to Rule 416(a) of
the Securities Act of 1933, as amended (the "Securities Act"), this
Registration Statement also covers shares issued pursuant to certain
anti-dilution provisions as set forth in the Marvell Technology Group Ltd.
Amended and Restated 1995 Stock Option Plan, including, without limitation,
shares issued as a result of any stock split, stock dividend, recapitalization
or any other similar transaction effected without the Registrant's receipt of
consideration that results in an increase in the number of the Registrant's
outstanding common shares.
(2)
Estimated solely
for purposes of calculating the registration fee in accordance with Rules 457(c) and
(h) under the Securities Act of 1933, as amended, on the basis of $16.475,
the average of the high and low prices of the Registrant's common shares on June 18,
2008, as reported on The NASDAQ Global Select Market.
(3)
Amount of the
Registration Fee was calculated pursuant to Section 6(b) of the
Securities Act, and was determined by multiplying the aggregate offering amount
by 0.0000393.
PROSPECTUS
169,277
Shares
MARVELL
TECHNOLOGY GROUP LTD.
Common
Shares
This prospectus relates to the registration of up to 169,277
of our common shares (the "Shares"), which may be offered from time to time by
certain of our shareholders (the "Selling Shareholders") for their own
accounts.  We will receive no part of the
proceeds from sales made hereunder.  The
Shares were issued or are issuable by the Selling Shareholders upon vesting of
stock units awards granted under our Amended and Restated 1995 Stock Option
Plan.  The Shares may be offered by the
Selling Shareholders from time to time in one or more transactions in the over-the-counter
market at prices prevailing therein, in negotiated transactions at such prices
as may be agreed upon, or in a combination of such methods of sale.  See "Plan of Distribution."  The price at which any of the Shares may be
sold, and the commissions, if any, paid in connection with any such sale, are
unknown and may vary from transaction to transaction.  The Selling Shareholders will bear all sales
commissions and similar expenses.  Any
other expenses incurred by us in connection with the registration and offering
that are not borne by the Selling Shareholders will be borne by us.  None of the Shares have been registered prior
to the filing of this Registration Statement on Form S-8/S-3 (herein,
together with all amendments and exhibits, referred to as the "Registration
Statement") of which this prospectus is a part.
Our common shares have been quoted on The NASDAQ
Global Select Market under the symbol "MRVL" since June 27, 2000.  Prior to that time, there was no public
market for our common shares.  On June 19,
2008, the last sale price for our common shares as reported on The NASDAQ
Global Select Market was $17.50 per share.
This offering involves material
risks.  See "Risk Factors" on page 4
for a discussion of factors that should be considered by prospective investors
of the Shares offered by this prospectus.
The Securities and Exchange Commission (the "SEC") may
take the view that, under certain circumstances, the Selling Shareholders and
any broker-dealers or agents that participate with the Selling Shareholders in
the distribution of the Shares may be deemed to be "underwriters" within the
meaning of the Securities Act of 1933, as amended (the "Securities Act").  Commissions, discounts or concessions
received by any such broker-dealer or agent may be deemed to be underwriting
commissions under the Securities Act. 
See "Plan of Distribution."
THESE SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS.  ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
Prospectus dated June 20,
2008.
MARVELL TECHNOLOGY GROUP LTD.
We are a fabless semiconductor provider of
high-performance application-specific standard products. Our core strength of
expertise is the development of complex system-on-a-chip devices leveraging our
extensive portfolio of intellectual property in the areas of analog,
mixed-signal, digital signal processing and embedded ARM-based microprocessor
integrated circuits. Our product portfolio includes devices for data storage,
enterprise-class Ethernet data switching, Ethernet physical-layer transceivers,
handheld cellular, Ethernet-based wireless networking, personal area
networking, Ethernet-based PC connectivity, control plane communications
controllers, video-image processing and power management solutions. Our
products serve diverse applications used in carrier, metropolitan, enterprise
and PC-client data communications and storage systems. Additionally, we serve
the market for the convergence of voice, video and data applications in the
consumer electronics market.
Our core technologies were initially focused on the
storage market, where we provide high-performance products to storage companies
such as Fujitsu, Hitachi, Samsung, Seagate, Toshiba and Western Digital
Corporation. We subsequently applied our technology to the broadband
communications market, where we provide industry-leading physical layer
transceivers, wired and wireless Ethernet-switching solutions that enable the
data transmission between communications systems to manufacturers of high-speed
networking and wireless equipment including ASUSTeK, Cisco Systems, Inc.,
3Com Corporation, Dell Inc., Juniper Networks, Inc., Foundry Networks, Inc.,
Intel Corporation and NETGEAR, Inc. Our wireless technology has a variety
of uses in emerging consumer electronic devices, including enabling applications
such as wireless connectivity, ad-hoc gaming, streaming audio, video and voice
over Internet applications for products offered by companies such as Microsoft
Corporation, Motorola, Inc., Palm, Inc. and Sony Corporation.
In fiscal 2007, we acquired the communications and
application processor business from Intel, providing us with cellular and
handheld solutions with customers such as Research in Motion Limited, Motorola
and Palm. Also, during fiscal 2007, we acquired the printer semiconductor
division from Avago Technologies Limited, which provides system-on-a-chip and
system level solutions for both inkjet and laser jet printer systems. We also
have applied our technology by introducing integrated circuits and modules that
provide power management broadly to electronic devices.
We were incorporated in
Bermuda in January 1995. Our registered address is Canon's Court,
22 Victoria Street, Hamilton HM 12, Bermuda, and our telephone number
there is (441) 296-6395. The address of our United States subsidiary is
Marvell Semiconductor, Inc., 5488 Marvell Lane, Santa Clara,
California 95054, and our telephone number there is (408) 222-2500. We
also have offices in many countries including Israel, Singapore, Germany,
Canada, China, India, Italy, Japan, Korea, Malaysia, Switzerland, Taiwan and
the United Kingdom. Our fiscal year ends on the Saturday nearest January 31.
Our
website address is located at www.marvell.com. The information contained in our
website does not form any part of this Registration
Statement on Form S-8/S-3.  However, we make available free of charge
through our website our annual reports on Form 10-K, our quarterly reports
on Form 10-Q, our current reports on Form 8-K and amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon
as reasonably practicable after we electronically file this material with, or
furnish it to, the SEC.
FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated herein
by reference contain forward-looking statements that are based on current
expectations, estimates and projections about our industry, management's
beliefs, and assumptions made by management. 
Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," variations of such words and similar expressions are intended to
identify such forward-looking statements. 
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict; therefore, actual results may differ materially from those expressed
or forecasted in any such forward-looking statements.  Such risks and uncertainties include those
set forth herein under "Risk Factors," as well as
2
those noted in the
documents incorporated herein by reference. 
We undertake no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
In this prospectus, "we,"
"us" and "our" refer to Marvell Technology Group Ltd.  In this prospectus, we refer to the fiscal
year ended January 27, 2007 as fiscal 2007 and the fiscal year ended February 2,
2008 as fiscal 2008.
* * * * *
3
RISK FACTORS
The Shares offered hereby are speculative in nature
and involve a high degree of risk.  The
following risk factors should be considered carefully, in addition to the other
information contained in the documents incorporated by reference herein, before
purchasing the Shares offered hereby.
Changes in our management may cause uncertainty in, or be
disruptive to, our business.
We have
experienced significant changes in our management and our Board of Directors.
In May 2007, our former Chief Financial Officer resigned and our Executive
Vice President and Chief Operating Officer, who is one of our co-founders,
resigned from those positions and as a member of our Board of Directors and
continues to serve in a non-management role. Our current interim Chief
Financial Officer, who joined us in January 2008, will become Acting Chief
Operating Officer after our newly appointed Chief Financial Officer joins us
later this month. Also, the general counsel of our U.S. operating subsidiary
was terminated in March 2007. We have not yet recruited permanent
replacements for our Chief Operating Officer and General Counsel positions, and
if we cannot recruit qualified permanent replacements for such positions, our
business may suffer. Moreover, we continue to search for new independent
directors to fill the existing vacancies on our Board of Directors, and one of
the independent directors currently on our Board of Directors joined our Board
of Directors in October 200
7. One of the independent directors will succeed Dr. Sehat
Sutardja as Chairman of the Board. Although we will endeavor to implement any
director and management transition as nondisruptive as possible, any such
transition might impact our business, and give rise to uncertainty among
customers, investors, vendors, employees and others concerning our future
direction and performance. Our future success will depend to a significant
extent on the ability of our management team to work together effectively. The
loss of any of our management or other key personnel could harm our ability to
implement our business strategy and respond to the rapidly changing market
conditions in which we operate. Moreover, our success will depend on our
ability to attract, hire and retain qualified management and other key
personnel and on the abilities of the new management personnel to function
effectively, both individually and as a group, going forward. If we are unable
to attract and retain effective qualified replacements for our key executives
and board of directors positions in a timely manner, our business, financial
condition, results of operations and cash flows may be adversely affected and
our ability to execute our business model could be impaired.
A number of our current and former executive officers and
directors have been named as parties to several purported shareholder
derivative and class action lawsuits relating to our historic stock option
granting practices, and there is a possibility of additional lawsuits, all of
which could require significant management time and attention and result in
significant legal expenses.
We are subject to
a number of consolidated shareholder derivative lawsuits brought purportedly on
behalf of us against certain of our current and former executive officers and
board members relating to our historic stock option grant practices. We are
named as a nominal defendant in these lawsuits. The parties to these
consolidated shareholder derivative lawsuits have reached a tentative settlement.
In addition, consolidated putative shareholder class action lawsuits have been
filed against us and certain of our officers and directors that allege
violations of the federal securities laws in connection with our
historic stock option granting practices. We and our current and former
executive officers and board members may in the future be subject to additional
litigation relating to our historic stock option granting practices.
Subject to certain limitations, we are obligated to indemnify our current and
former directors, officers and employees in connection with such lawsuits. The
expenses associated with these lawsuits may be significant, the amount of time
to resolve these lawsuits is unpredictable and defending these lawsuits may
divert management's attention from the day-to-day operations of our business,
which could have a material adverse effect on our financial condition,
business, results of operations and cash flows.
We have been named as a party to several purported class
action and shareholder derivative lawsuits relating to our historic
stock
option
granting practices, and we may be named in additional litigation, all of which
could cause our business, financial condition, results of operations and cash
flows to suffer.
We have been named
as a nominal defendant in purported shareholder derivative actions that name a
number of our current and former directors and officers as defendants and that
seek to recover damages purportedly sustained by us in connection with our
historic stock option granting practices. The parties in the consolidated
derivative lawsuit have
4
reached a tentative settlement. In addition, putative
class actions have been filed against us and certain of our officers and
directors that allege violations of the federal securities laws in connection
with our historic option granting practices, which seek to recover damages. We
and our current and former executive officers and board members may in the
future be subject to additional litigation relating to our
historic stock option granting
practices. We cannot predict the outcome of these lawsuits. Regardless of the
outcome, these lawsuits, and any other litigation that may be brought against
us or our directors and officers, could be time consuming, result in
significant expense, and divert the attention and resources of our management
and other key employees. An unfavorable outcome in these litigations could
exceed the proceeds obtained from a recent settlement and policy release with
our directors and officers liability insurers and could have a material adverse
effect on our business, financial condition, financial results, results of
operations and cash flows, including potential impacts to certain covenants in
our existing credit agreement.
Our tentative settlement of the consolidated shareholder
derivative actions requires the court's preliminary and final approval, and may
not be approved by the court.
On or about March 5,
2008, the parties entered into a memorandum of understanding that tentatively
settles and resolves the pending consolidated derivative action. This tentative
settlement of the derivative actions requires court approval before it becomes
final. The court may not preliminarily or finally approve the tentative
settlement. If the court does not approve the tentative settlement, the parties
might elect or be required to continue litigating the consolidated derivative
actions.
Matters related to the internal review of our historic stock
option granting practices and the restatement of our financial statements may
result in additional litigation, regulatory proceedings and government
enforcement actions, and could have a negative impact on our reputation,
business, financial condition and financial results.
Our historic stock
option granting practices and the restatement of our financial statements have
exposed us to greater risks associated with litigation, regulatory proceedings
and government enforcement actions. We may become the subject of additional
private or government actions regarding these matters in the future. We
provided the results of our internal review to the SEC and the United States
Attorney's Office for the Northern District of California, and in that regard
responded to formal and informal requests for documents and additional
information. As discussed above, the SEC conducted first an informal and then a
formal investigation of our historic stock option grant practices. On May 8,
2008, we announced that we had reached an agreement with the SEC to settle this
matter. In a related agreement, Weili Dai also entered into a settlement with
the SEC. The Court entered into the final judgment against Ms. Dai on June 16,
2008. We are awaiting the entry of the final judgment against us. Although this
settlement will conclude the SEC's formal investigation of us with respect to
our historic stock option granting practices, we cannot be certain regarding
the outcome of any other unresolved litigation, regulatory proceedings and
government enforcement actions relating to our
historic stock option granting practices. The resolution of these
matters has been and will be time consuming and expensive, and may require the
time and attention of our management. Subject to certain limitations, we are
obligated to indemnify our current and former directors, officers and employees
in connection with the shareholder litigation, as well as the government
investigations of our historic stock option granting practices and any subsequent litigation. Further, we could
be required to pay damages or additional penalties or have other remedies
imposed against us, our directors, executive officers or other officers, or
employees, which could harm our reputation, business, financial condition,
results of operations and cash flows. Moreover, ongoing government
investigations, and the pending shareholder derivative and class action
litigation could have a negative impact on our relationships with customers,
suppliers and business partners, our ability to generate revenue, our ability
to obtain director and officer insurance coverage, our ability to attract and
retain employees, officers, and directors, our ability to access debt and
equity markets, customer and investor confidence in our board and management,
and our revenue, net income, expenses, results of operations, profitability,
earnings-per-share and cash flows.
Class action litigation due to stock price volatility
or other factors could cause us to incur substantial costs and divert our
management's attention and resources.
On July 31,
2001, a putative class action suit was filed against two investment banks that
participated in the underwriting of our initial public offering ("IPO") on June 29,
2000. That lawsuit, which did not name
us or any of our officers or directors as defendants, was filed in
the United States District Court for the Southern District of New York.
Plaintiffs allege that the underwriters received "excessive" and undisclosed
commissions and entered into unlawful "tie-in" agreements with certain of their
investment clients in violation of Section 10(b) of the Exchange Act.
Thereafter, on
5
September 5, 2001, a second putative class action
was filed in the Southern District of New York relating to our IPO. In this
second action, plaintiffs named three underwriters as defendants and also named
as defendants, us and two of our officers, one of whom is also a director.
Relying on many of the same allegations contained in the initial complaint in
which we were not named as a defendant, plaintiffs allege that the defendants
violated various provisions of the Securities Act and the Exchange Act in the
course of our IPO. In both actions, plaintiffs seek, among other items,
unspecified damages, pre-judgment interest and reimbursement of attorneys' and
experts' fees. These two actions relating to our IPO have been coordinated with
hundreds of other similar lawsuits filed by plaintiffs against approximately 40
underwriters and approximately 300 issuers across the United States. Defendants
in the coordinated proceedings moved to dismiss the actions. In February 2003,
the trial court granted the motions in part and denied them in part, thus
allowing the case to proceed against us and the underwriters and us as to alleged
violations of section 11 of the Securities Act and section 10(b) of
the Exchange Act. Claims against the individual officers have been voluntarily
dismissed with prejudice by agreement with plaintiffs. In June 2004, a
stipulation of settlement and release of claims against the issuer defendants,
including us, was submitted to the court for approval. On August 31, 2005,
the court preliminarily approved the settlement. In December 2006, the
appellate court overturned the certification of classes in the six focus cases
that were selected by the underwriter defendants and plaintiffs in the
coordinated proceedings (the action involving
us is not one of the six cases). Because
class certification was a condition of the settlement, it was unlikely that the
settlement would receive final court approval. On June 25, 2007, the court
entered an order terminating the proposed settlement based upon a stipulation
among the parties to the settlement. Plaintiffs have filed amended master
allegations and amended complaints in the six focus cases and have moved for
class certification. On December 21, 2007, defendants in the six focus
cases filed briefs opposing plaintiffs' motion for class certification. The
parties have also fully briefed a motion to dismiss by defendants in the six
focus cases. The court has not yet set a hearing date for either of those
motions. In the past, securities class action litigation often has been brought
against a company following periods of volatility in the market price of its
securities. Companies in the integrated circuit industry and other technology
industries are particularly vulnerable to this kind of litigation due to the
high volatility of their stock prices. Accordingly, we may in the future be the
target of additional securities litigation. Any securities litigation could
result in substantial costs, could divert the attention and resources of our
management, and could have a material adverse effect on our reputation,
business, financial condition, financial results, results of operations and
cash flows.
We have had and continue to have material weaknesses in
internal control over financial reporting and cannot assure you that additional
material weaknesses will not be identified in the future. If our internal
control over financial reporting or disclosure controls and procedures are not
effective, there may be errors in our financial statements that could require a
restatement or our filings may not be filed on a timely basis and investors may
lose confidence in our reported financial information, which could lead to a
decline in our stock price.
We have assessed
that we continue to have material weaknesses in internal control over financial
reporting. Effective internal controls are necessary for us to provide reliable
financial reports and effectively prevent fraud. Any inability to provide
reliable financial reports or prevent fraud could harm our business. The
Sarbanes-Oxley Act of 2002 requires management and our auditors to evaluate and
assess the effectiveness of our internal control over financial reporting.
Our management,
including our Chief Executive Officer and interim Chief Financial Officer, does
not expect that our internal control over financial reporting will prevent all
error and all fraud. A control system, no matter how well designed and
operated, can provide only reasonable, not absolute, assurance that the control
system's objectives will be met. Further, the design of a control system must
reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent
limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any,
involving us have been, or will be, detected. These inherent limitations
include the realities that judgments in decision making can be faulty,
breakdowns can occur because of simple error or mistake and errors discovered
by personnel within control systems may not be properly disclosed and
addressed. Controls can also be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
controls. The design of any system of controls is based in part on certain
assumptions about the likelihood of future events, and we cannot assure you
that any design will succeed in achieving its stated goals under all potential
future conditions. Over time, controls may become inadequate because of changes
in conditions or deterioration in the degree of compliance with policies or
procedures. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.
6
We cannot assure you
that material weaknesses in our internal control over financial reporting will
not be identified in the future. Although we intend to continue to devote
substantial resources to improve our internal control processes, we may not be
able to effectively and timely implement necessary control changes and employee
training to ensure continued compliance with the Sarbanes-Oxley Act of 2002 and
other regulatory and reporting requirements. Our rapid growth and numerous
acquisitions in recent periods, and our possible future expansion through
additional acquisitions, present challenges to maintain the internal control
and disclosure control standards applicable to public companies. Any failure to
maintain or implement required new or improved controls, or any difficulties we
encounter in their implementation, could result in significant deficiencies or
material weaknesses, cause us to fail to timely meet our periodic reporting
obligations, or result in material misstatements in our financial statements.
Any such failure could also adversely affect the results of periodic management
evaluations and the effectiveness of our internal control over financial
reporting required under the Sarbanes-Oxley Act of 2002. The existence of a
material weakness could result in errors in our financial statements that could
result in a restatement of financial statements, cause us to fail to timely
meet our reporting obligations and cause investors to lose confidence in our
reported financial information, leading to a decline in our stock price. If we
fail to maintain effective internal controls, we could be subject to regulatory
scrutiny and sanctions and investors could lose confidence in the accuracy and
completeness of our financial reports. We cannot assure you that we will be able
to fully comply with the requirements of the Sarbanes-Oxley Act of 2002  or that management or our auditors will
conclude that our internal control over financial reporting is effective in
future periods.
If the recent worsening of credit market conditions
continues or increases, it could have a material adverse impact on our
investment portfolio.
Recent U.S.
sub-prime mortgage defaults have had a significant impact across various
sectors of the financial markets, causing global credit and liquidity issues.
The short-term funding markets experienced credit issues during the second half
of calendar 2007 and continuing into the first and second quarter of calendar
2008, leading to liquidity disruption in asset-backed commercial paper and
failed auctions in the auction rate market. If the global credit market
continues to deteriorate, our investment portfolio may be impacted and we could
determine that some of our investments are impaired. This could materially
adversely impact our results of operations and financial condition.
As of May 3,
2008, our investment portfolio included $42.2 million in par value of
auction rate securities.  Auction rate
securities are usually found in the form of municipal bonds, preferred stock,
pools of student loans or collateralized debt obligations with contractual
maturities generally between 20 to 30 years and whose interest rates are
reset every seven to thirty five days through an auction process. At the end of
each reset period, investors can sell or continue to hold the securities at
par.  Our auction rate securities are all
backed by student loans originated under the Federal Family Education Loan
Program, and are over-collateralized, insured and guaranteed by the United
States Federal Department of Education. 
All auction rate securities held by us are rated by the major
independent rating agencies as either AAA or Aaa at the time of purchase.
Beginning in February 2008,
liquidity issues in the global credit markets resulted in failure of the
auctions representing all of the auction rate securities held by us, as the
amount of securities submitted for sale in those auctions exceed the amount of
bids.  The failures of the auctions are
not believed to be a credit issue, but rather caused by a lack of
liquidity.  Due to the failure of
auctions, we used a discounted cash flow model to estimate the fair value of
the auction rate securities as of May 3, 2008.  The assumptions used in preparing the
discounted cash flow model included estimates for the amount and timing of future
interest and principal payments, the collateralization of underlying security
investments, the credit worthiness of the issuer and the rate of return
required by investors to own these securities in the current environment,
including call premium and liquidity premium. 
During the three month period ended May 3, 2008, we recorded a
temporary impairment charge of $1.7 million calculated using a discounted cash
flow model, in accumulated other comprehensive income, a component of
shareholders' equity.  When evaluating
whether the impairment of the investments are temporary or other than
temporary, we reviewed factors such as the length of time and extent to which
fair value has been below cost basis and our ability and intent to hold the
investment for a period of time which may be sufficient for anticipated
recovery in market value.
While the recent
auction failures will limit our ability to liquidate these investments, we do
not believe that the auction failures will materially impact our ability to
fund our working capital needs, capital expenditures or other business
requirements.  We believe that we have
the ability to hold these securities for a period longer than
12 months.  However, at the reporting date, it is not
certain when liquidity will return to the markets, or if any other secondary
7
markets will become available, we have continued to
classify these auction rate securities in long-term investments as of May 3,
2008.
We will continue
to evaluate the impact of these failed auctions on the fair value of the
securities.  If the issuer of the auction
rate securities is unable to successfully close future auctions or does not
redeem the auction rate securities, or the United States government fails to
support its guaranty of the obligations, we may be required to adjust the
carrying value of the auction rate securities and record other-than-temporary
impairment charges in future periods, which could materially affect our results
of operations and financial condition. 
Further, if the fair value of these securities is determined to be other
than temporarily impaired, we may be required to record a loss which could
materially affect our statement of operations.
There are numerous risks with our acquisition of the
communications and application processor business of Intel
.
We face
significant challenges in connection with the integration of the communications
and application processor business of Intel that we acquired in
November 2006. The integration of
the communications and application processor business of Intel could prove to
be more difficult than we originally anticipated, which could increase our
total direct costs associated with the acquisition. Moreover, this acquisition
could fail to produce anticipated benefits, or could result in unforeseen
liabilities or expenses such as future impairment charges of acquired assets
and goodwill or other adverse effects that we currently do not foresee, which
could harm our business and operating results.
The integration of
these business assets and personnel has been and will continue to be a time
consuming and expensive process that may disrupt our operations if it is not
completed in a timely and efficient manner. If customers do not accept or are
dissatisfied with the way we have integrated the manufacturing processes of the
business, they may adopt competing products and solutions. If our integration
efforts are not successful, our results of operations could be harmed, employee
morale could decline, key employees could leave, and customer relations could
be damaged. In addition, we may not achieve anticipated synergies or other
benefits. The total cost of the integration may exceed our expectations, which
would harm our operating results.
Our recent acquisitions and any future acquisitions could
harm our operating results and share price.
In November 2006,
we completed our acquisition of the communications and application processor
business of Intel. We also completed several smaller acquisitions over the last
three fiscal years.
Such acquisitions,
as well as acquisitions in the future, could materially harm our operating
results or liquidity as a result of possible concurrent issuances of dilutive
equity securities or payment of cash. In addition, the purchase price of any
acquired businesses may exceed the current fair values of the net tangible
assets of the acquired businesses. As a result, we would be required to record
material amounts of goodwill, acquired in-process research and development charges
and other intangible assets, which could result in significant impairment and
acquired in-process research and development charges and amortization expense
in future periods. It may also be necessary for us to take other financial
charges and reserves as a result of acquisitions, such as inventory
write-downs. These charges, in addition to the results of operations of such
acquired businesses, could have a material adverse effect on our business,
financial condition and results of operations. We cannot forecast the number,
timing or size of future acquisitions, or the effect that any such acquisitions
might have on our operating or financial results.
Under GAAP, we are
required to review our intangible assets for impairment whenever events or
changes in circumstances indicate that the carrying value of these assets may
not be recoverable. In addition, we are required to review our goodwill and
indefinite-lived intangible assets on an annual basis. If presently unforeseen
events or changes in circumstances arise which indicate that the carrying value
of our goodwill or other intangible assets may not be recoverable, we will be
required to perform impairment reviews of these assets, which had carrying
values of approximately $2.4 billion as of May 3, 2008. An impairment
review could result in a write-down of all or a portion of these assets to
their fair values. We intend to perform an annual impairment review during the
fourth quarter of each fiscal year or more frequently if we believe indicators
of impairment exist. In light of the large carrying value associated with our
goodwill and intangible assets, any write-down of these assets may result in a
significant charge to our statement of operations in the period any impairment
is determined and could cause our stock price to decline.
8
We have made and may continue to make acquisitions and
investments which could divert management's attention, cause ownership dilution
to our shareholders, be difficult to integrate and adversely affect our
financial results.
We expect to
continue to make acquisitions of, and investments in, businesses that offer
complementary products, services and technologies, augment our market segment
coverage, or enhance our technological capabilities. We may also enter into
strategic alliances or joint ventures to achieve these goals. We cannot assure
you that we will be able to identify suitable acquisition, investment, alliance
or joint venture opportunities
, or that we will be able to consummate any such transactions or
relationships on terms and conditions acceptable to us, or that such
transactions or relationships will be successful.
Integrating newly
acquired businesses or technologies could put a strain on our resources, could
be costly and time consuming, and might not be successful. Such acquisitions
could divert our management's attention from other business concerns. In
addition, we might lose key employees while integrating new organizations.
Acquisitions could also result in customer dissatisfaction, performance
problems with an acquired company or technology, potentially dilutive issuances
of equity securities or the incurrence of debt, the assumption or incurrence of
contingent liabilities, possible impairment charges related to goodwill or
other intangible assets
,
or other unanticipated events or circumstances, any of which could harm our
business. We might not be successful in integrating any acquired businesses,
products or technologies, and might not achieve anticipated revenues and cost
benefits.
Our ability to
realize the expected benefits of our acquisition of the communications and
application processor business of Intel and to eliminate the operating losses
of that business will depend in large part on our ability to arrange for or
maintain more cost-effective production of that business' products, either
through the recently completed transition of the manufacturing of certain
products from Intel to third-party foundries or through continuing arrangements
with Intel for certain legacy products, increase the gross margin of those
products, and retain the business' relationship with its principal customers,
along with other matters described above relating to our ability to integrate
effectively the acquired business and its technologies, operations and
personnel.
A significant portion of our business is dependent on the
hard disk drive industry, which is highly cyclical, experiences rapid
technological change, and is facing increased competition from alternate technologies.
The hard disk
drive industry is intensely competitive, and the technology changes rapidly. As
a result, this industry is highly cyclical, with periods of increased demand
and rapid growth followed by periods of oversupply and subsequent contraction.
These cycles may affect us because our customers are suppliers to this
industry. Hard disk drive manufacturers tend to order more components than they
may need during growth periods, and sharply reduce orders for components during
periods of contraction. In addition, advances in existing technologies and the
introduction of new technologies may result in lower demand for disk drive
storage devices, thereby reducing demand for our products. Rapid technological
changes in the hard disk drive industry often result in significant and rapid
shifts in market share among the industry's participants. If the hard disk
drive manufacturers using our products do not retain or increase their market
share, our sales may decrease.
Future changes in
the nature of information storage products may reduce demand for traditional
hard disk drives. For instance, products using alternative technologies, such
as semiconductor memory, optical storage, and other storage technologies could
become a significant source of competition to manufacturers of hard disk
drives. Flash memory has typically been more costly than disk drive
technologies. However, flash memory manufacturers have been reducing the prices
for their products, which could enable them to complete more effectively with
very small form factor hard disk drive products. Demand for hard disk drives
could be reduced if alternative storage technologies such as flash memory can
meet customers' cost and capacity requirements.
Our sales are concentrated in a few customers and if we lose
or experience a significant reduction in sales to any of these key customers,
our revenues may decrease substantially.
We receive a
significant amount of our revenues from a limited number of customers. For the
quarter ended May 3, 2008
, one customer accounted for more than 10% of our net revenue, for a
total of 21% of our net revenue. Sales to our largest customers have fluctuated
significantly from period to period primarily due to the timing and number of
design wins with each customer, as well as the continued diversification of our
customer base as we expand into new markets, and will likely continue to
fluctuate dramatically in the future. The loss of any of our largest customers,
a significant
9
reduction in sales we make to them, or any problems we
encounter collecting amounts due from them would likely harm our financial
condition and results of operations. Our operating results in the foreseeable
future will continue to depend on sales to a relatively small number of
customers, as well as the ability of these customers to sell products that
incorporate our products. In the future, these customers may decide not to
purchase our products at all, purchase fewer products than they did in the past,
or alter their purchasing patterns in some other way, particularly because:
·
substantially all of our sales are
made on a purchase order basis, which permits our customers to cancel, change
or delay product purchase commitments with little or no notice to us and
without penalty;
·
our customers may develop their own
solutions;
·
our customers may purchase integrated
circuits from our competitors; or
·
our customers may discontinue sales
or lose market share in the markets for which they purchase our products.
If we are unable to accurately predict our future sales and
to appropriately budget for our expenses, our operating results could suffer.
The rapidly
changing nature of the markets in which we sell our products limits our ability
to accurately forecast quarterly and annual sales. Additionally, because many
of our expenses are fixed in the short term or are incurred in advance of
anticipated sales, we may not be able to decrease our expenses in a timely
manner to offset any shortfall of sales. If our sales do not increase as
anticipated, significant losses could result due to our higher expense levels.
For example, although in fiscal years 2006 and 2007 we expanded our staffing
and increased our expense levels in anticipation of future sales growth, in the
fourth quarter of fiscal 2008, we implemented a plan to reduce operating
expenses and help meet financial targets with a worldwide reduction in force of
approximately 438 employees, or approximately 8% of our total workforce. We
expect cost savings from this restructuring to be used to offset market forces
or to be reinvested in our businesses to strengthen our competitiveness, but we
cannot be certain that we will be successful in these efforts.
Our financial and operating results may vary which may cause
the price of our common shares to decline.
We currently
provide guidance on revenue and gross margin on a quarterly basis. Our
quarterly operating results have fluctuated in the past and are likely to do so
in the future. Because our operating results are difficult to predict, you
should not rely on quarterly comparisons of our results of operations as an
indication of our future performance. We have made substantial investments in
expanding our operations which has resulted in an increase in our operating
expenses. We may not be able to increase revenues in an amount sufficient to
offset these increased expenditures, which may lead to a loss for a quarterly
period.
Fluctuations in
our operating results may be due to a number of factors, including, but not
limited to, those listed below and those identified throughout this "Risk
Factors" section:
·
order
or shipment cancellations, rescheduling or deferrals of significant customer
orders;
·
our
ability to scale our operations in response to changes in demand for our
existing products and services or demand for new products requested by our
customers;
·
gain
or loss of a key customer;
·
our
ability to maintain a competitive cost structure for our manufacturing and
assembly and test processes;
·
failure
to qualify our products or our suppliers' manufacturing lines;
·
our
ability to exercise stringent quality control measures to obtain high yields;
10
·
effective and timely update of equipment
and facilities as required for leading edge production capabilities; and
·
our ability to realize the benefits
expected from our recent acquisitions, including our acquisition of the Intel
communications and application processor business of Intel.
Due to fluctuations in our quarterly operating results and other
factors, the price at which our common shares will trade is likely to continue
to be highly volatile. In future periods, if our revenues or operating results
are below our estimates or the estimates or expectations of public market
analysts and investors, our stock price could decline. On average, technology
companies have been subject to a greater number of securities class action
claims than companies in many other industries as a result of stock price
volatility. If our stock price is volatile, we may become involved in this type
of litigation. Any litigation could result in substantial costs and a diversion
of management's attention and resources that are needed to successfully run our
business.
Changes in
financial accounting standards or practices or existing taxation rules or
practices may cause adverse unexpected revenue and expense fluctuations and
affect our reported results of operations.
A change in accounting standards or practices or a change in existing
taxation rules or practices can have a significant effect on our reported
results and may even affect our reporting of transactions completed before the
change is effective. New accounting pronouncements and taxation rules and
varying interpretations of accounting pronouncements and taxation practice have
occurred and may occur in the future. Changes to existing rules or the
questioning of current practices by regulators may adversely affect our
reported financial results or the way we conduct our business.
If we are unable to
develop and introduce new and enhanced products that achieve market acceptance
in a timely and cost-effective manner, our operating results and competitive
position will be harmed.
Our future success will depend on our ability, in a timely and
cost-effective manner, to develop and introduce new products and enhancements
to our existing products. We must also achieve market acceptance for these
products and enhancements. If we do not successfully develop and achieve market
acceptance for new and enhanced products, our ability to maintain or increase
revenues will suffer. The development of our products is highly complex. We
occasionally have experienced delays in completing the development and
introduction of new products and product enhancements, and we could experience
delays in the future. Even if new and enhanced products are introduced to the
market, we may not be able to achieve market acceptance of them in a timely manner.
In addition, our longstanding relationships with some of our larger
customers may also deter other potential customers who compete with these
customers from buying our products. To attract new customers or retain existing
customers, we may offer certain customers favorable prices on our products. If
these prices are lower than the prices paid by our existing customers, we would
have to offer the same lower prices to certain of our customers who have
contractual "most favored nation" pricing arrangements. In that event, our
average selling prices and gross margins would decline. The loss of a key
customer, a reduction in sales to any key customer or our inability to attract
new significant customers could materially and adversely affect our business, financial
condition and results of operations.
If we fail to
appropriately scale our operations in response to changes in demand for our
existing products and services or to the demand for new products requested by
our customers, our business could be materially and adversely affected.
To achieve our business objectives, it may be necessary from time to
time for us to expand or contract our operations. For example, we have
experienced periods of rapid growth and expansion. Through internal growth and
acquisitions, we significantly increased the scope of our operations and
expanded our workforce from 1,205 employees, as of January 31, 2003, to
5,320 employees, as of May 3, 2008. Nonetheless, we may not be able to
scale our workforce and operations in a sufficiently timely manner to respond
effectively to changes in demand for our existing products and services or to
the demand for new products requested by our customers. In that event, we may
be unable to meet competitive challenges or exploit potential market
opportunities, and our current or future business could be materially and
adversely affected. Conversely, if we expand our operations and workforce too
rapidly in anticipation of increased demand for our products,
11
and such demand
does not materialize at the pace at which we expected, the rate of increase in
our operating expenses may exceed the rate of increase in our revenue, which
would adversely affect our operating results.
Our past growth has placed, and any future growth is expected to
continue to place, a significant strain on our management personnel, systems
and resources. To implement our current business and product plans, we will
need to continue to expand, train, manage and motivate our workforce. All of
these endeavors will require substantial management effort. Although we have
implemented an enterprise resource planning system to help us improve our
planning and management processes, we anticipate that we will also need to
continue to implement and improve a variety of new and upgraded operational and
financial systems, as well as additional procedures and other internal
management systems. These processes can be time consuming and expensive,
increase management responsibilities, and divert management attention. If we
are unable to effectively manage our expanding operations, we may be unable to
scale our business quickly enough to meet competitive challenges or exploit
potential market opportunities, or conversely, we may scale our business too
quickly and the rate of increase in our expenses may exceed the rate of
increase in our revenue, either of which would materially and adversely affect
our current or future business.
We rely on
independent foundries and subcontractors for the manufacture, assembly and
testing of our integrated circuit products, and the failure of any of these
third-party vendors to deliver products or otherwise perform as requested could
damage our relationships with our customers, decrease our sales and limit our
growth.
We do not have our own manufacturing or assembly facilities and have
very limited in-house testing facilities. Therefore, we rely on third-party
vendors to manufacture, assemble and test the products we design. We currently
rely on several third-party foundries to produce substantially all of our
integrated circuit products. We also currently rely on several third-party
assembly and test subcontractors to assemble, package and test our products.
This exposes us to a variety of risks, including the following:
Regional Concentration:
Substantially all of our products are manufactured by third-party
foundries located in Taiwan. Currently our only alternative manufacturing
sources are located in Taiwan, China and Singapore. In addition, substantially
all of our assembly and testing facilities are located in Singapore, Taiwan,
Malaysia and the Philippines. Because of the geographic concentration of these
third-party foundries, we are exposed to the risk that their operations may be
disrupted by regional disasters. For example, the risk of an earthquake in
Taiwan and elsewhere in the Pacific Rim region is significant due to the
proximity of major earthquake fault lines to the facilities of our foundries
and assembly and test subcontractors. In September 1999, a major
earthquake in Taiwan affected the facilities of several of these third-party
contractors. As a consequence of this earthquake, these contractors suffered
power outages and disruptions that impaired their production capacity. Major
earthquakes also occurred in Taiwan in 2002, 2003, 2004 and more recently in
2006. In addition, the resurgence of severe acute respiratory syndrome, the
outbreak of avian flu and any similar future outbreaks in Asia, where these
foundries are located, could affect the production capabilities of our
manufacturers by resulting in quarantines or closures. In the event of such a
quarantine or closure, if we were unable to quickly identify alternate
manufacturing facilities, our revenues, cost of revenues and results of
operations would be negatively impacted. If these vendors do not provide us
with high-quality products and services in a timely manner, or if one or more
of these vendors terminates its relationship with us, we may be unable to
obtain satisfactory replacements to fulfill customer orders on a timely basis,
our relationships with our customers could suffer, our sales could decrease and
harm our business, financial condition or results of operations.
No Guarantee of Capacity or Supply:
Availability of foundry capacity has from time to time in the past been
constrained due to strong demand, and with limited exceptions, our vendors are
not obligated to perform services or supply products to us for any specific
period, in any specific quantities, or at any specific price, except as may be
provided in a particular purchase order. The ability of each foundry to provide
us with semiconductor devices is limited by its available capacity and existing
obligations. Although we have entered into contractual commitments to supply
specified levels of products to some of our customers, we may not have
sufficient levels of production capacity with all of our foundries, despite
signing a long-term guaranteed production capacity agreement with one of our
foundries. Despite this agreement, foundry capacity may not be available when
we need it or at reasonable prices. We place our orders on the basis of our
customers' purchase orders or our forecast of customer demand, and the
foundries can allocate capacity to the production of other companies'
12
products and
reduce deliveries to us on short notice. It is possible that foundry customers
that are larger and better financed than we are or that have long-term
agreements with our main foundries, may induce our foundries to reallocate
capacity to those customers. This reallocation could impair our ability to
secure the supply of components that we need.
Although we use several independent foundries to manufacture
substantially all of our semiconductor products, most of our components are not
manufactured at more than one foundry at any given time, and our products
typically are designed to be manufactured in a specific process at only one of
these foundries. Accordingly, if one of our foundries is unable to provide us
with components as needed, it may be difficult for us to transition the
manufacture of our products to other foundries, and we could experience
significant delays in securing sufficient supplies of those components. This could
result in a material decline in revenues, net income and cash flow.
In order to secure sufficient foundry capacity when demand is high and
mitigate the risks described in the foregoing paragraph, we may enter into
various arrangements with suppliers that could be costly and harm our operating
results, such as nonrefundable deposits with or loans to foundries in exchange
for capacity commitments, and contracts that commit us to purchase specified
quantities of integrated circuits over extended periods. We may not be able to
make any such arrangement in a timely fashion or at all, and any arrangements
may be costly, reduce our financial flexibility, and not be on terms favorable
to us. For example, amounts payable under our foundry capacity are non-refundable
regardless of whether we are able to utilize all of any of the guaranteed wafer
capacity under the terms of the agreement. Moreover, if we are able to secure
foundry capacity, we may be obligated to use all of that capacity or incur
penalties. These penalties may be expensive and could harm our financial
results.
Uncertain Yields and Quality:
The fabrication of integrated circuits is a complex and technically
demanding process. Our foundries have from time to time experienced
manufacturing defects and reduced manufacturing yields. Changes in
manufacturing processes or the inadvertent use of defective or contaminated
materials by our foundries could result in lower than anticipated manufacturing
yields or unacceptable performance. Many of these problems are difficult to
detect at an early stage of the manufacturing process and may be time consuming
and expensive to correct. Poor yields from our foundries, or defects,
integration issues or other performance problems in our products could cause us
significant customer relations and business reputation problems, harm our
financial results and result in financial or other damages to our customers.
Our customers could also seek damages from us for their losses. A product
liability claim brought against us, even if unsuccessful, would likely be time
consuming and costly to defend. In addition, defects in our existing or new
products could result in significant warranty, support and repair costs, and
divert the attention of our engineering personnel from our product development
efforts.
Our operations
located in the State of Israel may be harmed by adverse political, economic and
military conditions affecting Israel.
We have substantial operations, including approximately 20% of our
workforce as of the first quarter ended May 3, 2008, in Israel. These
operations are directly influenced by the political, economic and military
conditions affecting Israel. Any potential hostilities involving or within
Israel could disrupt these operations. For example, past hostilities between
Israel and the Palestinian authority and other groups have caused substantial
political unrest, which could lead to a potential economic downturn in Israel.
Additionally, the ongoing situation in Iraq could lead to more economic
instability and uncertainty in the State of Israel and the Middle East. Also,
the interruption or curtailment of trade between Israel and its present trading
partners or a significant downturn in the economic or financial condition of
Israel could negatively impact the business operations and financial results of
our operations in Israel.
We rely on
third-party distributors and manufacturers' representatives and the failure of
these distributors and manufacturers' representatives to perform as expected
could reduce our future sales.
We sell many of our products to customers through distributors and
manufacturers' representatives. Our relationships with some of our distributors
and manufacturers' representatives have been established within the last two
years, and we are unable to predict the extent to which our distributors and
manufacturers' representatives will be successful in marketing and selling our
products. Moreover, many of our distributors and manufacturers' representatives
also market and sell competing products. Our
distributors and manufacturer's
representatives may
terminate their relationships with us at any time. Our future performance will
also depend, in part, on our ability to attract additional distributors or
13
manufacturers'
representatives that will be able to market and support our products
effectively, especially in markets in which we have not previously distributed
our products. If we cannot retain our current distributors or manufacturers' representatives
or recruit additional or replacement distributors or manufacturers'
representatives, our sales and operating results will be harmed. The loss of
one or more of our distributors or manufacturers' representatives could harm
our sales and results of operations. We generally realize a higher gross margin
on direct sales and from sales through manufacturers' representatives than on
sales through distributors. Accordingly, if our distributors were to account
for an increased portion of our net sales, our gross margins may decline.
We are subject to
order and shipment uncertainties, and if we are unable to accurately predict
customer demand, we may hold excess or obsolete inventory, which would reduce
our profit margin, or, conversely, we may have insufficient inventory, which
would result in lost revenue opportunities and potentially in loss of market
share and damaged customer relationships.
We typically sell products pursuant to purchase orders rather than
long-term purchase commitments. Customers can generally cancel or defer
purchase orders on short notice without incurring a significant penalty. In the
recent past, some of our customers have developed excess inventories of their
own products and have, as a consequence, deferred purchase orders for our
products. We cannot accurately predict what or how many products our customers
will need in the future. Anticipating demand is difficult because our customers
face volatile pricing and unpredictable demand for their own products and are
increasingly focused more on cash preservation and tighter inventory
management. In addition, as an increasing number of our chips are being
incorporated into consumer products, we anticipate greater fluctuations in
demand for our products, which makes it more difficult to forecast customer
demand. We place orders with our suppliers based on forecasts of customer
demand and, in some instances, may establish buffer inventories to accommodate
anticipated demand. Our forecasts are based on multiple assumptions, each of which
may introduce error into our estimates. If we overestimate customer demand, we
may allocate resources to manufacturing products that we may not be able to
sell when we expect to, if at all. As a result, we would hold excess or
obsolete inventory, which would reduce our profit margins and adversely affect
our financial results. Conversely, if we underestimate customer demand or if
insufficient manufacturing capacity is available, we would forgo revenue
opportunities and potentially lose market share and damage our customer
relationships. In addition, any future significant cancellations or deferrals
of product orders or the return of previously sold products could materially
and adversely affect our profit margins, increase product obsolescence and restrict
our ability to fund our operations. Furthermore, we generally recognize revenue
upon shipment of products to a customer. If a customer refuses to accept
shipped products or does not timely pay for these products, we could incur
significant charges against our income.
Our future success
depends in significant part on strategic relationships with customers. If we
cannot maintain these relationships or if these customers develop their own
solutions or adopt a competitor's solutions instead of buying our products, our
operating results would be adversely affected.
In the past, we have relied in significant part on our strategic
relationships with customers that are technology leaders in our target markets.
We intend to pursue and continue to form these strategic relationships in the
future but we cannot assure you that we will be able to do so. These
relationships often require us to develop new products that may involve
significant technological challenges. Our customers frequently place
considerable pressure on us to meet their tight development schedules.
Accordingly, we may have to devote a substantial amount of our limited
resources to our strategic relationships, which could detract from or delay our
completion of other important development projects. Delays in the development
could impair our relationships with our strategic customers and negatively
impact sales of the products under development. Moreover, it is possible that
our customers may develop their own solutions or adopt a competitor's solution
for products that they currently buy from us. If that happens, our business,
financial condition and results of operations could be materially harmed.
We may experience
difficulties in transitioning to smaller geometry process technologies or in
achieving higher levels of design integration, which may result in reduced
manufacturing yields, delays in product deliveries and increased expenses.
In order to remain competitive, we expect to continue to transition our
semiconductor products to increasingly smaller line width geometries. This
transition requires us to modify the manufacturing processes for our products
and to redesign some products. We periodically evaluate the benefits, on a
product-by-product basis, of migrating to smaller geometry process technologies
to reduce our costs. In the past, we have experienced some difficulties in
shifting to
14
smaller geometry
process technologies or new manufacturing processes, which resulted in reduced
manufacturing yields, delays in product deliveries and increased expenses. We
may face similar difficulties, delays and expenses as we continue to transition
our products to smaller geometry processes. We are dependent on our
relationships with our foundry subcontractors to transition to smaller geometry
processes successfully. We cannot assure you that the foundries that we use
will be able to effectively manage the transition or that we will be able to
maintain our existing foundry relationships or develop new ones. If any of our
foundry subcontractors or we experience significant delays in this transition
or fail to efficiently implement this transition, we could experience reduced
manufacturing yields, delays in product deliveries and increased expenses, all
of which could harm our relationships with our customers and our results of
operations. As smaller geometry processes become more prevalent, we expect to
continue to integrate greater levels of functionality, as well as customer and
third party intellectual property, into our products. However, we may not be
able to achieve higher levels of design integration or deliver new integrated
products on a timely basis, if at all. Moreover, even if we are able to achieve
higher levels of design integration, such integration may have a short-term
adverse impact on our operating results, as we may reduce our revenue by
integrating the functionality of multiple chips into a single chip.
We have a large
amount of debt and our debt service obligations may prevent us from taking
actions that we would otherwise consider to be in our best interests.
As of May 3, 2008, the aggregate principal amount of our total
consolidated debt was $393.8 million. Covenants in the agreements
governing our existing debt, and debt we may incur in the future, may
materially restrict our operations, including our ability to incur debt, pay
dividends, make certain investments and payments, make acquisitions and
encumber or dispose of assets. In addition, financial covenants contained in
agreements relating to our existing and future debt could lead to a default in
the event our results of operations do not meet our plans and we are unable to
amend those financial covenants. A default and acceleration under one debt
instrument may also trigger cross-acceleration under our other debt
instruments. An event of default under any debt instrument, if not cured or
waived, could result in the lenders requiring us to repay the debt, and could
make it more difficult for us to obtain additional debt financing arrangements,
any of which could have a material adverse effect on our business, financial
condition, results of operations and cash flows.
In addition, the level of our indebtedness could have significant
negative consequences for our future operations, including:
·
increasing our vulnerability to general
adverse economic and industry conditions;
·
limiting our ability to obtain additional
financing for working capital, capital and research and development
expenditures, and general corporate purposes;
·
requiring the dedication of a substantial
portion of our expected cash flow or our existing cash to service our
indebtedness, thereby reducing the amount of our cash available for other
purposes, including working capital, capital expenditures and research and development
expenditures;
·
limiting our flexibility in planning for,
or reacting to, changes in our business and the industry in which we compete;
and
·
placing us at a possible competitive
disadvantage compared to less leveraged competitors and competitors that have
better access to capital resources.
We are subject to
the risks of owning real property.
Our U.S. headquarters located in Santa Clara California, building in
Singapore, buildings in Malaysia, buildings in Switzerland and buildings in
Shanghai, China subject us to the risks of owning real property, including:
·
the possibility of environmental
contamination and the costs associated with fixing any environmental problems;
15
·
adverse changes in the value of these
properties, due to interest rate changes, changes in the neighborhood in which
the property is located, or other factors;
·
the possible need for structural
improvements in order to comply with zoning, seismic and other legal or
regulatory requirements;
·
the potential disruption of our business
and operations arising from or connected with a relocation due to moving to or
renovating the facility;
·
increased cash commitments for
improvements to the buildings or the property or both;
·
increased operating expenses for the
buildings or the property or both;
·
possible disputes with tenants or other
third parties related to the buildings or the property or both; and
·
the risk of financial loss in excess of
amounts covered by insurance, or uninsured risks, such as the loss caused by
damage to the buildings as a result of earthquakes, floods and or other natural
disasters.
We depend on key
personnel with whom we do not have employment agreements to manage our
business, and if we are unable to retain our current personnel and hire
additional personnel, our ability to develop and successfully market our
products could be harmed.
We believe our future success will depend in large part upon our
ability to attract and retain highly skilled managerial, engineering and sales
and marketing personnel. The loss of any key employees or the inability to
attract or retain qualified personnel, including engineers and sales and
marketing personnel, could delay the development and introduction of and harm
our ability to sell our products. We do not have employment contracts with our
key personnel, and their knowledge of our business and industry would be
extremely difficult to replace.
There is currently a shortage of qualified technical personnel with
significant experience in the design, development, manufacturing, marketing and
sales of integrated circuits. In particular, there is a shortage of engineers
who are familiar with the intricacies of the design and manufacture of products
based on analog technology, and competition for these engineers is intense. Our
key technical personnel represent a significant asset and serve as the source
of our technological and product innovations. We may not be successful in
attracting and retaining sufficient numbers of technical personnel to support
our anticipated growth.
Our officers and
directors own a large percentage of our voting stock, and two of them, together
with another employee, are also significant shareholders and are related by
blood or marriage. These factors may allow the officers and directors as a
group or the three related employees to greatly influence the election of
directors and the approval or disapproval of significant corporate actions.
As of May 3, 2008, our executive officers and directors
beneficially owned or controlled, directly or indirectly, approximately 19.3%
of our outstanding common shares. Additionally, Dr. Sehat Sutardja, our
Chief Executive Officer, and Weili Dai, who serves as our Vice President of
Sales for Communications and Consumer Business of MSI, are husband and wife and
Dr. Sehat Sutardja and Dr. Pantas Sutardja, our Vice President, Chief
Technology Officer, Acting Chief Operating Officer and Chief Research and
Development Officer, are brothers. Together, these three individuals held
approximately 19.3% of our outstanding common shares as of May 3, 2008. As
a result, if the directors and officers as a group or any of Dr. Sehat
Sutardja, Weili Dai and Dr. Pantas Sutardja act together, they will
significantly influence the election of our directors and the approval or
disapproval of our significant corporate actions. This influence over our
affairs might be adverse to the interests of other shareholders. For instance,
the voting power of these officers, directors and others could have the effect
of delaying or preventing an acquisition of
us
on terms that other shareholders may desire.
Furthermore, we have a classified board, which could also further delay or
prevent an acquisition, under certain circumstances.
Under Bermuda law, all of our officers, in exercising their powers and
discharging their duties, must act honestly and in good faith with a view to
our best interests and exercise the care, diligence and skill that a reasonably
prudent person
16
would exercise in comparable circumstances. Majority shareholders do
not owe fiduciary duties to minority shareholders. As a result, the minority
shareholders will not have a direct claim against the majority shareholders in
the event the majority shareholders take actions that damage the interests of
minority shareholders. Class actions and derivative actions are generally
not available to shareholders under the laws of Bermuda, except that Bermuda
courts would be expected to follow English case law precedent, which would
permit a shareholder to bring an action in our name if the directors or
officers are alleged to be acting beyond our corporate power, committing
illegal acts or violating our Memorandum of Association or Bye-laws. In
addition, minority shareholders would be able to challenge a corporate action
that allegedly constituted a fraud against them or required the approval of a
greater percentage of our shareholders than actually approved it. The winning
party in such an action generally would be able to recover a portion of
attorneys' fees incurred in connection with the action.
We face foreign
business, political and economic risks, which may harm our results of
operations, because a majority of our products and our customers' products are
manufactured and sold outside of the United States.
A substantial portion of our business is conducted outside of the
United States and, as a result, we are subject to foreign business, political
and economic risks. All of our products are manufactured outside of the United
States. Our current qualified integrated circuit foundries are located in the
same region within Taiwan, and our primary assembly and test subcontractors are
located in the Pacific Rim region. In addition, many of our customers are
located outside of the United States, primarily in Asia, which further exposes
us to foreign risks. Sales to customers located in Asia represented
approximately 84% of our net revenue in the fiscal quarter ended May 3,
2008, 84% of our net revenue in fiscal 2008 and 89% of our net revenue in
fiscal 2007.
We anticipate that our manufacturing, assembly, testing and sales
outside of the United States will continue to account for a substantial portion
of our operations and revenue in future periods. Accordingly, we are subject to
risks associated with international operations, including:
·
difficulties in obtaining domestic and
foreign export, import and other governmental approvals, permits and licenses;
·
compliance with foreign laws, and laws
and practices that favor local companies;
·
difficulties in staffing and managing
foreign operations;
·
trade restrictions or higher tariffs;
·
transportation delays;
·
difficulties of managing distributors,
especially because we expect to continue to increase our sales through
international distributors;
·
withholding tax obligations on revenues
that we may not be able to offset fully against our U.S. tax obligations,
including the further risk that foreign tax authorities may increase tax rates,
which could result in increased tax withholdings and penalties;
·
less effective protection of intellectual
property than is afforded to us in the United States or other developed
countries;
·
political and economic instability,
including wars, terrorism, other hostilities and political unrest, boycotts,
curtailment of trade and other business restrictions; and
·
inadequate local infrastructure.
Moreover, the international nature of our business subjects us to risk
associated with the fluctuation of the
U.S.
dollar versus foreign currencies.
Decreases in the value of the
U.S.
dollar versus currencies in
jurisdictions where we have large fixed costs will increase the cost of such
operations, which could harm our results of operations. For example, we have
17
large fixed costs
in Israel, which become relatively greater if the U.S. dollar declines in value
versus the Israeli shekel. On January 27, 2007, the U.S. dollar -
Israeli shekel exchange ratio was 4.25, but on May 3, 2008, this exchange
ratio had fallen to 3.45. On the other hand, because substantially all of our
sales to date have been denominated in U.
S.
dollars, increases in the value of the
U.S.
dollar will increase the price of our
products so that they become relatively more expensive to customers in the
local currency of a particular country, potentially leading to a reduction in
sales and profitability for us in that country. A portion of our international
revenue may be denominated in foreign currencies in the future, which will
subject us to risks associated with fluctuations in exchange rates for those
foreign currencies.
The average selling
prices of products in our markets have historically decreased rapidly and will
likely do so in the future, which could harm our revenues and gross profits.
The products we develop and sell are used for high volume applications.
As a result, the prices of those products have historically decreased rapidly.
We may not be able to maintain or improve the gross margins and our gross
profits and financial results will suffer if we are unable to offset any reductions
in our average selling prices by increasing our efficiency through increasing
sales volumes, reducing our costs, or developing new or enhanced products on a
timely basis with higher selling prices or gross profits.
Additionally, because we do not operate our own manufacturing, assembly
or testing facilities, we may not be able to reduce our costs as rapidly as
companies that operate their own facilities, and our costs may even increase,
which could also reduce our margins. In the past, we have reduced the average
selling prices of our products in anticipation of future competitive pricing
pressures, new product introductions by us or our competitors and other
factors. We expect that we will have to do so again in the future.
We have a lengthy
and expensive product sales cycle that does not assure product sales, and that
if unsuccessful, may harm our operating results.
The sales cycle for many of our products is long and requires us to
invest significant resources with each potential customer without any assurance
of sales to that customer. Our sales cycle typically begins with an extended
evaluation and test period, also known as qualification, during which our
products undergo rigorous reliability testing by our customers.
Qualification is typically followed by an extended development period
by our customers and an additional three to nine month period before a customer
commences volume production of equipment incorporating our products. This
lengthy sales cycle creates the risk that our customers will decide to cancel
or change product plans for products incorporating our integrated circuits.
During our sales cycle, our engineers assist customers in implementing our
products into the customers' products. We incur significant research and
development
,
selling
and marketing,
general and administrative expenses as
part of this process, and this process may never generate related revenues. We
derive revenue from this process only if our design is selected. Once a
customer selects a particular integrated circuit for use in its storage
product, the customer generally uses solely that integrated circuit for a full
generation of its product. Therefore, if we do not achieve a design win for a
product, we will be unable to sell our integrated circuit to a customer until
that customer develops a new product or a new generation of its product. Even
if we achieve a design win with a customer, the customer may not ultimately
ship products incorporating our products or may cancel orders after we have
achieved a sale. In addition, we will have to begin the qualification process
again when a customer develops a new generation of a product for which we were
the successful supplier.
Our typical customer contract does not obligate the customer to any
minimum purchase commitment. We may build inventory in anticipation of
receiving customer orders, but if such customer demand does not develop as we
anticipate, it may become necessary for us to write-off such inventory. Also,
during the final production of a mature product, our customers typically
exhaust their existing inventory of our integrated circuits. Consequently,
orders for our products may decline in those circumstances, even if our
products are incorporated into both our customers' mature and replacement
products. A delay in a customer's transition to commercial production of a
replacement product may cause the customer to lose sales, which would delay our
ability to recover the lost sales from the discontinued mature product. In
addition, customers may defer orders in anticipation of new products or product
enhancements from our competitors or us.
18
We must keep pace
with rapid technological change and evolving industry standards in the
semiconductor industry to remain competitive.
Our future success will depend on our ability to anticipate and adapt
to changes in technology and industry standards and our customers' changing
demands. We sell products in markets that are characterized by rapid
technological change, evolving industry standards, frequent new product
introductions, short product life cycles and increasing demand for higher
levels of integration and smaller process geometries. Our past sales and
profitability have resulted, to a large extent, from our ability to anticipate
changes in technology and industry standards and to develop and introduce new
and enhanced products incorporating the new standards and technologies. Our
ability to adapt to these changes and to anticipate future standards, and the
rate of adoption and acceptance of those standards, will be a significant
factor in maintaining or improving our competitive position and prospects for
growth. If new industry standards emerge, our products or our customers'
products could become unmarketable or obsolete, and we could lose market share.
We may also have to incur substantial unanticipated costs to comply with these
new standards. In addition, our target markets continue to undergo rapid growth
and consolidation. A significant slowdown in any of these markets could
materially and adversely affect our business, financial condition and results
of operations. Our success will also depend on the ability of our customers to
develop new products and enhance existing products for the markets we serve and
to introduce and promote those products successfully.
We may be unable to
protect our intellectual property, which would negatively affect our ability to
compete.
We believe one of our key competitive advantages results from our
collection of proprietary technologies that we have developed since our
inception. If we fail to protect these intellectual property rights,
competitors could sell products based on technology that we have developed
which could harm our competitive position and decrease our revenues. We believe
that the protection of our intellectual property rights is and will continue to
be important to the success of our business. We rely on a combination of
patent, copyright, trademark and trade secret laws, as well as nondisclosure
agreements and other methods, to protect our proprietary technologies. We also
enter into confidentiality or license agreements with our employees,
consultants and business partners, and control access to and distribution of
our documentation and other proprietary information. We have been issued
several United States patents and have a number of pending United States patent
applications. However, a patent may not be issued as a result of any
applications or, if issued, claims allowed may not be sufficiently broad to
protect our technology. In addition, it is possible that existing or future
patents may be challenged, invalidated or circumvented. Despite our efforts,
unauthorized parties may attempt to copy or otherwise obtain and use our
products or proprietary technology. Monitoring unauthorized use of our
technology is difficult, and the steps that we have taken may not prevent
unauthorized use of our technology, particularly in foreign countries where the
laws may not protect our proprietary rights as fully as in the United States.
We may become
involved with costly and lengthy litigation, which could subject us to
liability, require us to obtain or renew licenses or stop selling our products
or force us to redesign our products.
Litigation involving patents and other intellectual property is
widespread in the high-technology industry and is particularly prevalent in the
integrated circuit industry, where a number of companies and other entities
aggressively bring numerous infringement claims to assert their patent
portfolios. From time to time our subsidiaries and customers receive, and may
continue to receive in the future, notices that allege claims of infringement,
misappropriation or misuse of the intellectual property rights of third
parties. For example, in recent years, multiple claims have been made against
our subsidiaries and our customers related to standards-based technologies such
as wireless local area networking. In addition, we have certain patent licenses
with third parties that are up for renewal in calendar year 2009, and if we
cannot successfully renew these licenses, our subsidiaries and customers could
face claims of infringement. These claims could result in litigation and/or
claims for indemnification, which, in turn, could subject us to significant
liability for damages, attorneys fees and costs. Any potential intellectual
property litigation also could force us to do one or more of the following:
·
stop selling, offering for sale, making,
having made or exporting products or using technology that contains the
allegedly infringing intellectual property;
·
limit or restrict the type of work that
employees involved in such litigation may perform for us;
19
·
pay substantial damages and/or license
fees and/or royalties to the party claiming infringement that could adversely
impact our liquidity or operating results;
·
attempt to obtain or renew licenses to
the relevant intellectual property, which licenses may not be available on
reasonable terms or at all; and
·
attempt to redesign those products that
contain the allegedly infringing intellectual property.
For example, one
of our subsidiaries is a named third-party defendant in a patent infringement
lawsuit against NETGEAR filed in Wisconsin by Fujitsu Limited, LG Electronics
and U.S. Philips Corp.  In addition,
three of our subsidiaries filed an action in Texas against Australia's
Commonwealth Scientific and Industrial Research Organisation ("CSIRO") seeking
a declaratory judgment that CSIRO's patent is invalid and unenforceable and
that our subsidiary does not infringe the CSIRO patent.  Furthermore, one of our subsidiaries is a
named defendant in a patent infringement lawsuit, also in Texas, filed by
Wi-Lan, a Canadian company, which likewise alleges that its asserted patents
are infringed.  Finally, one of our
subsidiaries has filed an action in California against Wi-Lan asking the court
to find that Marvell's products do not infringe certain Wi-Lan patents.  We believe that our subsidiaries do not
infringe any of the asserted Fujitsu, CSIRO or Wi-Lan patents, and we will
vigorously defend ourselves in these matters.
Marvell and/or its subsidiaries are also parties to other claims and
litigation proceedings arising in the normal course of business. The impact on
us as a result of such claims and litigation cannot currently be ascertained.
Any litigation, regardless of the outcome, is time-consuming and expensive to
resolve and can divert management time and attention. There can be no assurance
that these matters will be resolved in a manner that is not adverse to our
business, financial condition, results of operations or cash flows.
Our intellectual property indemnification practices may
adversely impact our business.
Some of our
contracts require our subsidiaries to indemnify customers under certain
circumstances for various costs and damages of intellectual property
infringement. This practice may subject our subsidiaries to significant
indemnification claims by our customers or others for the payment of legal
expenses and damages should a court find infringement. In the past, our
subsidiaries have received notice from customers informing them that they have
received allegations from certain patent holders that the inclusion of our
chipsets into our customer's products requires the payment of patent license
fees. We cannot assure you that such claims will not be pursued or that these
claims, if pursued, would not harm our business.
For example, customers have requested our subsidiaries
to indemnify them in connection with a patent infringement lawsuits filed in
Texas by CSIRO. Similarly, certain customers have asked one of our subsidiaries
to indemnify them in connection with patent infringement lawsuits filed in
Texas by Wi-Lan.  In addition, NETGEAR
has filed suit against one of our subsidiaries in Wisconsin demanding that its
component suppliers, including one of our subsidiaries, indemnify NETGEAR for
damages stemming from the patent lawsuit filed by Fujitsu.
We are incorporated
in Bermuda, and, as a result, it may not be possible for our shareholders to
enforce civil liability provisions of the securities laws of the United States.
We are organized under the laws of Bermuda. As a result, it may not be
possible for our shareholders to effect service of process within the United
States upon us, or to enforce against us in United States courts judgments
based on the civil liability provisions of the securities laws of the United
States. Most of our executive officers and directors are residents of the
United States. However, there is significant doubt as to whether the courts of
Bermuda would recognize or enforce judgments of United States courts obtained
against us or our directors or officers based on the civil liability provisions
of the securities laws of the United States or any state or hear actions
brought in Bermuda against us or those persons based on those laws. The United
States and Bermuda do not currently have a treaty providing for the reciprocal
recognition and enforcement of judgments in civil and commercial matters.
Therefore, a final judgment for the payment of money rendered by any federal or
state court in the United States based on civil liability, whether or not based
solely on United States federal or state securities laws, would not be
automatically enforceable in Bermuda.
20
Our Bye-laws
contain a waiver of claims or rights of action by our shareholders against our
officers and directors, which will severely limit our shareholders' right to
assert a claim against our officers and directors under Bermuda law.
Our Bye-laws contain a broad waiver by our shareholders of any claim or
right of action, both individually and on our behalf, against any of our
officers and directors. The waiver applies to any action taken by an officer or
director, or the failure of an officer or director to take any action, in the
performance of his or her duties with or for us, other than with respect to any
matter involving any fraud or dishonesty on the part of the officer or
director. This waiver will limit the rights of our shareholders to assert
claims against our officers and directors unless the act complained of involves
actual fraud or dishonesty. Thus, so long as acts of business judgment do not
involve actual fraud or dishonesty, they will not be subject to shareholder
claims under Bermuda law. For example, shareholders will not have claims against
officers and directors for a breach of trust, unless the breach rises to the
level of actual fraud or dishonesty.
Tax benefits we
receive may be terminated or reduced in the future, which would increase our
costs.
Under current Bermuda law, we are not subject to tax on our income and
capital gains. We have obtained from the Minister of Finance of Bermuda under
the Exempt Undertakings Tax Protection Act 1966, as amended, an undertaking
that, in the event that Bermuda enacts any legislation imposing tax computed on
income and capital gains, those taxes should not apply to us until March 28,
2016.  However, it is possible that this exemption would not be extended
beyond that date.
The Economic Development Board of Singapore granted Pioneer Status to our wholly-owned
subsidiary in Singapore in July 1999. Initially, this tax exemption was to
expire after ten years, but the Economic Development Board in June 2006
agreed to extend the term to fifteen years. As a result, we anticipate
that a significant portion of the income we earn in Singapore during this
period will be exempt from the Singapore income tax. We are required to meet
several requirements as to investment, headcount and activities in Singapore to
retain this status. If our Pioneer Status is terminated early, our financial
results could be harmed.
The Israeli government has granted Approved Enterprise Status to two of our
wholly-owned subsidiaries in Israel, which provides a tax holiday on
undistributed income derived from operations within certain "development
regions" in Israel. In order to maintain our qualification, we must continue to
meet specified conditions, including the making of investments in fixed assets
in Israel. As our tax holidays expire, we expect that we will start paying
income tax on our operations within these development regions.
During fiscal 2007, our Switzerland subsidiary received from both the Swiss
Federal Department of Economy and the Vaud Cantonal Tax Administration a
ten-year tax holiday on design and research centre and wafer supply trading
activity revenues earned in Switzerland.  Each jurisdiction has separate
requirements that need to be met such as the ten-year business requirement and
investment in head count, intellectual property, office equipment, software and
other expense items.  If the requirements are not met, there would be tax
dollars to be paid which may affect our financial results.
Our Bye-laws
contain provisions that could delay or prevent a change in corporate control,
even if the change in corporate control would benefit our shareholders.
Our Bye-laws contain change in corporate control provisions, which
include:
·
authorizing the issuance of preferred
stock without shareholder approval;
·
providing for a classified board of
directors with staggered, three-year terms; and
·
requiring a vote of two-thirds of the
outstanding shares to approve any change of corporate control.
These changes in corporate control provisions could make it more
difficult for a third-party to acquire us, even if doing so would be a benefit
to our shareholders.
21
USE OF PROCEEDS
We will not receive any
of the proceeds from the sale of the Shares. 
All proceeds from the sale of the Shares will be for the account of the
Selling Shareholders.  See "Selling
Shareholders" and "Plan of Distribution" described below.
SELLING SHAREHOLDERS
The Shares were issued or
are issuable to the Selling Shareholders upon vesting of stock unit awards
granted under our Amended and Restated 1995 Stock Option Plan and pursuant to
the forms of Stock Unit Agreement and Notice of Stock Unit Awards for use
thereunder.  Our registration of the
Shares does not necessarily mean that the Selling Shareholders will sell all or
any of the Shares.
The following table lists
certain information concerning the Selling Shareholders, including the number of
common shares beneficially owned by the Selling Shareholders as of May 31,
2008 and the number of Shares that the Selling Shareholders may sell under this
prospectus.  Beneficial ownership is
determined in accordance with the rules and regulations of the SEC.  In computing the number of common shares
beneficially owned by a person and the percentage ownership of that person,
common shares subject to options held by that person that are currently
exercisable or exercisable within 60 days of May 31, 2008 are deemed
outstanding, as well as stock units that may vest within 60 days of May 31,
2008.  These common shares, however, are
not deemed outstanding for the purposes of computing the percentage ownership
of any other person.  Except as indicated
in the footnotes to this table and pursuant to applicable community property
laws, to our knowledge, each Selling Shareholder has sole voting and investment
power with respect to the common shares listed in the table below.  None of the Selling Shareholders is an officer
or director of us.
Beneficial Ownership of
Common Shares Prior to
Offering (1)
Number of Common Shares
Offered
Beneficial Ownership
of Common Shares
After Offering (1) (2)
Selling Shareholders
Number
Percent
Number
Percent
Selling Shareholders (3)(4)
337,295
*
169,277
168,018
*
*
Less than one percent.
(1)
Applicable
  percentage ownership is based on 604,121,515 common shares outstanding.
(2)
Assumes that all
  of the Shares held by each Selling Shareholder and being offered under this
  prospectus are sold, and that no Selling Shareholder will acquire additional
  common shares before the completion of this offering.
(3)
Represents
  Selling Shareholders who collectively hold less than 1% of the common shares
  outstanding prior to the offering. Includes the following 25 named
  non-affiliate persons, each of whom holds or may be issued at least one
  thousand (1,000) Shares: Lixin Nie, Honjie Guan, Baihong Fang, Hok-Lam Kwan,
  Shu-Shin Chin, Chengyun Gao, Ching-Han Tsai, Shivappa Kukanur, Ping Gao, Roy
  Neville, Jagadish Venkataraman, Todd Sepke, Hatem Yazbek, Loc Nguyen,
  Xiaodong Wang, Ruoxin Jiang, Ravishankar Kalyanaraman, Zhihong Yu, Lihan
  Chang, Hai-Ying Yen, Jhao-Jyun Chiang, David Borland, Gang Liang, Erez
  Schwartz and David Ben-Eli.
Also includes
  approximately 19 unnamed non-affiliate persons, each of whom holds or may be
  issued less than one thousand (1,000) Shares and each of whom may sell up to
  such amount using this prospectus.
(4)
Includes
  (a) 267,813 common shares that are exercisable as of 60 days of
  May 31, 2008 and (b) restricted stock units granted to employees to
  receive 3,429 common shares as of 60 days of May 31, 2008.
We may amend or
supplement this prospectus from time to time in the future to update or change
this list of the Selling Shareholders and Shares which may be offered and sold.
22
PLAN OF DISTRIBUTION
We are registering the Shares previously issued and
issuable to the Selling Shareholders to permit the resale of these Shares by
the Selling Shareholders from time to time after the date of this
prospectus.  We will not receive any of
the proceeds from the sale by the Selling Shareholders of the Shares.  We will bear all fees and expenses incident
to our obligation to register the Shares.
The Selling Shareholders may sell all or a portion of
the common shares beneficially owned by them and the Shares offered hereby from
time to time directly or through broker-dealers or agents.  The Selling Shareholders may also sell all or
a portion of the Shares from time to time in the over-the-counter market and
that sales will be made at prices prevailing in the public market at the times
of such sales.  Further, the Selling
Shareholders may choose to dispose of the Shares by gift to a third party or as
a donation to a charitable or other non-profit entity.  In connection with any sales, the Selling
Shareholders and any brokers participating in such sales may be deemed to be
underwriters within the meaning of the Securities Act.
Any broker-dealer participating in such transactions
as agent may receive commissions from the Selling Shareholders (and, if such
broker acts as agent for the purchaser of such Shares, from such
purchaser).  Usual and customary
brokerage fees will be paid by the Selling Shareholders.  Broker-dealers may agree with the Selling
Shareholders to sell a specified number of Shares at a stipulated price per
share, and, to the extent such a broker-dealer is unable to do so acting as
agent for the Selling Shareholders, to purchase as principal any unsold Shares
at the price required to fulfill the broker-dealer commitment to the Selling
Shareholders.  Broker-dealers who acquire
Shares as principal may thereafter resell such Shares from time to time in
transactions (which may involve crosses and block transactions and which may
involve sales to and through other broker-dealers, including transactions of
the nature described above) in the over the counter market, in negotiated
transactions or otherwise at market prices prevailing at the time of sale or at
negotiated prices, and in connection with such resales may pay to or receive
from the purchasers of such Shares commissions computed as described above.
Under applicable rules and regulations under the
Exchange Act, any person engaged in the distribution of the resale shares may
not simultaneously engage in market making activities with respect to the
common shares for the applicable restricted period, as defined in
Regulation M, prior to the commencement of the distribution. In addition,
the Selling Shareholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including
Regulation M, which may limit the timing of purchases and sales of the
common shares by the Selling Shareholders or any other person.
Any commissions paid or any discounts or concessions
allowed to any such broker-dealers, and, if any such broker-dealers purchase
Shares as principal, any profits received on the resale of such Shares, may be
deemed to be underwriting discounts and commissions under the Securities Act.
If applicable, upon our being notified by the Selling
Shareholders that any material arrangement has been entered into with a
broker-dealer for the sale of the Shares through a cross or block trade, a
supplemental prospectus will be filed under Rule 424(c) under the
Securities Act, setting forth the name of the participating broker-dealer(s),
the number of the Shares involved, the price at which such Shares were sold by
the Selling Shareholders, the commissions paid or discounts or concessions
allowed by the Selling Shareholders to such broker-dealer(s), and, where
applicable, that such broker-dealer(s) did not conduct any investigation
to verify the information set out in this prospectus.  Any securities covered by this prospectus
that qualify for sale pursuant to Rule 144 under the Securities Act may be
sold under that Rule rather than pursuant to this prospectus.  There can be no assurance that the Selling
Shareholders will sell any or all of the Shares offered hereunder.
* *
* * *
23
LEGAL MATTERS
The validity of the Shares offered hereby will be
passed upon by Appleby, our Bermuda counsel.
EXPERTS
The consolidated financial statements and management's
assessment of the effectiveness of internal control over financial reporting
(which is included in Management's Report on Internal Control over Financial
Reporting) incorporated in this Prospectus by reference to the Annual Report on
Form 10-K for the year ended February 2, 2008 have been so
incorporated in reliance on the report (which contains an adverse opinion on
the effectiveness of internal control over financial reporting) of
PricewaterhouseCoopers LLP, an independent registered public accounting firm,
given on the authority of said firm as experts in auditing and accounting.
The statements of assets
to be acquired and liabilities to be assumed of the Hand Held Products Group as
of December 31, 2005 and December 25, 2004 and the related statements
of net revenues and direct expenses for each of the three years in the period
ended December 31, 2005 appearing in our Current Report on Form 8-K/A
dated July 2, 2007 have been audited by Ernst & Young LLP,
independent auditors, as set forth in their report thereon, included therein,
and incorporated herein by reference. Such financial statements are incorporated
herein by reference in reliance upon such report given on the authority of such
firm as experts in accounting and auditing.
INFORMATION INCORPORATED BY REFERENCE
The following documents
filed with the SEC are hereby incorporated by reference in this prospectus:
·
Our
Annual Report on Form 10-K for the fiscal year ended February 2,
2008, filed with the SEC on March 28, 2008
.
·
Our
Quarterly Report on Form 10-Q for the
quarterly period ended May 3, 2008, filed with the SEC on June 6,
2008.
·
Our
Proxy Statement filed with the SEC on June 2, 2008.
·
Our
Current Reports on Form 8-K filed with the SEC on February 6, 2008, March 6,
2008, April 4, 2008, May 2, 2008, May 8, 2008, May 23,
2008, May 30, 2008 and June 2, 2008 (two filings made).  With respect to such Current Reports on Form 8-K,
we specifically exclude from incorporation such information that has been
furnished and not filed pursuant to Item 2.02, Item 7.01 and/or Item 9.01.
·
Audited
statements of assets to be acquired and liabilities to be assumed as of December
31, 2005 and December 25, 2004 and the related statements of net revenues and direct
expenses for the years ended December 31, 2005, December 25, 2004 and December 27,
2003 for the Hands Held Products Group and the related notes thereto and Report
of Independent Auditors thereon included in our Current Report on Form 8-K/A filed
with the SEC on  July 2, 2007.
·
Unaudited
statements of assets to be acquired and liabilities to be assumed as of July 1,
2006 and the related statements of net revenues and direct expenses for the six
months ended July 1, 2006 and July 2, 2005 for the Hands Held Products Group and
the related notes thereto included in our Current Report on Form 8-K/A filed with
the SEC on July 2, 2007.
24
·
The
description of our common shares contained in our Registration Statement on Form 8-A
as filed with the SEC on June 22, 2000 pursuant to Section 12(g) of
the Exchange Act.
·
All
reports and other documents subsequently filed by us pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Exchange Act after the date of this prospectus
and prior to the termination of this offering (excluding any portions thereof
furnished but not filed under applicable rules and regulations) shall be
deemed to be incorporated by reference in this prospectus and to be part hereof
from the date of filing of such reports and other documents.
We hereby undertake to provide without charge to each
person, including any beneficial owner, to whom a copy of this prospectus is
delivered, upon written or oral request of any such person, a copy of any and
all of the information that has been or may be incorporated by reference in
this prospectus, other than exhibits to such documents.  Requests for such copies should be directed
to our Legal Department, Marvell Semiconductor, Inc., 5488 Marvell Lane,
Santa Clara, California 95054.  Our
telephone number at that location is (408) 222-2500.
We file annual, quarterly and current reports and
other information with the SEC.  You may
read and copy and documents we file at the SEC's Public Reference Room at
100 F Street, Washington, D.C. 20549. 
You may also obtain copies of the documents at prescribed rates by
writing to the Public Reference Section of the SEC at
100 F Street, N.E., Washington, D.C. 20549. Please call the SEC
at 1-800-SEC-0330 for further information on the operation of the public
reference facilities.
Our Internet address is www.marvell.com and the
investor relations section of our website is located at http://www.marvell.com/investors.  We make available free of charge, on or
through the investor relations section of our website, annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or
Section 15(d) of the Exchange Act as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the SEC.
You should rely only on the information contained or
incorporated by reference in this prospectus and in any accompanying prospectus
supplement.  We have not authorized
anyone to provide you with information different from that contained in this
prospectus.  The Shares offered under
this prospectus are offered only in jurisdictions where offers and sales are
permitted.  The information contained in
this prospectus is accurate only as of the date of this prospectus, regardless
of the time of delivery of this prospectus or any sale of the Shares.
This prospectus constitutes a part of a Registration
Statement filed by us with the SEC under the Securities Act.  This prospectus does not contain all of the
information set forth in the Registration Statement, certain parts of which are
omitted in accordance with the rules and regulations of the SEC.  For further information about us and the
Shares, reference is hereby made to the Registration Statement.  The Registration Statement may be inspected
at the public reference facilities maintained by the SEC at the addresses set
forth in the preceding paragraph. 
Statements contained herein concerning any document filed as an exhibit
are not necessarily complete, and, in each instance, reference is made to the
copy of such document filed as an exhibit to the Registration Statement.  Each such statement is qualified in its
entirety by such reference.
* * * * *
25
No person is authorized
in connection with any offering made by this prospectus to give any information
or to make any representations not contained in this prospectus, and, if given
or made, such information or representations must not be relied upon as having
been authorized by us, any Selling Shareholders or by any other person.  This prospectus does not constitute an offer
to sell or a solicitation of an offer to buy any security other than the Shares
offered hereby, nor does it constitute an offer to sell or a solicitation of an
offer to buy any of the Shares offered hereby to any person in any jurisdiction
in which it is unlawful to make such an offer or solicitation.  Neither the delivery of this prospectus nor
any sale of or offer to sell the Shares made hereunder shall under any
circumstances create any implication that there has been no change in our affairs
since the date hereof or that the information contained herein is correct as of
any time subsequent to the date hereof.
TABLE
OF CONTENTS
Page
Marvell Technology
  Group Ltd.
2
Forward-Looking Statements
2
Risk Factors
4
Use of Proceeds
22
Selling
  Shareholders
22
Plan of Distribution
23
Legal
  Matters
24
Experts
24
Information Incorporated by Reference
24
169,277 Common Shares
MARVELL TECHNOLOGY GROUP LTD.
PROSPECTUS
June 20, 2008
REGISTRATION
STATEMENT ON FORM S-8/S-3
PART II
INFORMATION
REQUIRED IN REGISTRATION STATEMENT
Item 3.  Incorporation of Documents by Reference.
The following
documents and information previously filed with the SEC by us are hereby
incorporated by reference in this Registration Statement:
·
Our
Annual Report on Form 10-K for the fiscal year ended February 2,
2008, filed with the SEC on March 28, 2008
.
·
Our
Quarterly Report on Form 10-Q for the
quarterly period ended May 3, 2008, filed with the SEC on June 6,
2008.
·
Our
Proxy Statement filed with the SEC on June 2, 2008.
·
Our
Current Reports on Form 8-K filed with the SEC on February 6, 2008, March 6,
2008, April 4, 2008, May 2, 2008, May 8, 2008, May 23,
2008, May 30, 2008 and June 2, 2008 (two filings made).  With respect to such Current Reports on Form 8-K,
we specifically exclude from incorporation such information that has been
furnished and not filed pursuant to Item 2.02, Item 7.01 and/or Item 9.01.
·
Audited
statements of assets to be acquired and liabilities to be assumed as of
December 31, 2005 and December 25, 2004 and the related statements of net
revenues and direct expenses for the years ended December 31, 2005, December
25, 2004 and December 27, 2003 for the Hands Held Products Group and the
related notes thereto and Report of Independent Auditors thereon included in our
Current Report on Form 8-K/A filed with the SEC on  July 2, 2007.
·
Unaudited
statements of assets to be acquired and liabilities to be assumed as of July 1,
2006 and the related statements of net revenues and direct expenses for the six
months ended July 1, 2006 and July 2, 2005 for the Hands Held Products Group
and the related notes thereto included in our Current Report on Form 8-K/A
filed with the SEC on July 2, 2007.
·
The
description of our common shares contained in our Registration Statement on Form 8-A
as filed with the SEC on June 22, 2000 pursuant to Section 12(g) of
the Exchange Act.
All reports and other documents subsequently filed by
us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange
Act after the date of this prospectus and prior to the termination of this
offering (excluding any portions thereof furnished but not filed under
applicable rules and regulations) shall be deemed to be incorporated by
reference in this prospectus and to be part hereof from the date of filing of
such reports and other documents.
Item 4.  Description of Securities.
Not applicable.
Item 5.  Interests of Named Experts and Counsel.
Not applicable.
II-1
Item 6.  Indemnification of Directors and Officers.
Set forth below is a description of certain provisions
of the Companies Act of 1981 of Bermuda (the "Companies Act"), our Memorandum
of Association, as presently in effect (the "Memorandum of Association"), and
our Bye-laws (the "Bye-laws"), as such provisions relate to the indemnification
of our directors and officers.  This
description is intended only as a summary and is qualified in its entirety by
reference to the applicable provisions of the Companies Act, the Memorandum of
Association and the Bye-laws, which are incorporated herein by reference.
The Companies Act permits us to indemnify its
directors or officers in their capacity as such in respect of any loss arising
or liability attaching to them by virtue of any rule of law in respect of
any negligence, default, breach of duty or breach of trust of which a director
or officer may be guilty in relation to us other than in respect of his own
fraud or dishonesty.
Our Bye-laws provide that every director, officer,
committee member and any resident representative be indemnified against any
liabilities, loss, damage or expense incurred or suffered in such capacity, subject
to limitations imposed in the Companies Act.
The Bye-laws further provide that we and each
shareholder agree to waive any claim or right of action against any director or
officer, in respect of any failure to act or any action taken by such director
or officer in the performance of his duties with or for us.  The waiver does not extend to claims arising
under United States federal securities laws or any claims or rights of action
arising from the fraud or dishonesty of the director or officer.
We have agreed to indemnify certain of our current and
former directors, officers and employees and our subsidiary Marvell
Semiconductor, Inc. for reasonable costs and expenses incurred by such
individuals in connection with certain civil actions and governmental
investigations relating to our historic stock option granting practices.  Our agreement to pay reasonable fees and
costs is subject to each individual's agreement to reimburse us in the event
that it is subsequently determined that the individual is not entitled to
indemnification under our Bye-laws or applicable law.
We have entered into indemnification agreements with
certain officers that may be sufficiently broad to permit indemnification of
such officers for liabilities (including reimbursement of expenses incurred)
arising under the Securities Act.
Item 7.  Exemption from Registration Claimed.
With
respect
to
the
restricted
common
shares
to
be
reoffered
or
resold
pursuant
to
this
Registration
Statement,
we
believe
that
the
issuance
of
such
shares
is
deemed
to
be
exempt
from
registration
in
reliance
upon
Section
2(a)(3)
of
the
Securities
Act.
The
common
shares
were
issued
or
are
issuable
to
the
selling
shareholders
upon
vesting
of
"stock
unit"
awards
granted
under
our
Amended
and
Restated
1995
Stock
Option
Plan
and
pursuant
to
the
forms
of
Stock
Unit
Agreement
and
Notice
of
Stock
Unit
Awards
for
use
thereunder.
The
stock
unit
awards
were
granted
for
no
consideration
and
represent
our
unfunded
and
unsecured
promise
to
issue
our
common
shares
at
a
future
date.
When
a
stock
unit
award
vests,
we
settle
the
award
by
the
issuance
to
the
award
recipient
for
no
consideration
with
one
common
share
for
each
vested
stock
unit.
We
believe
that,
in
accordance
with
the
rules
and
regulations
and
other
guidance
of
the
SEC,
the
grant
of
the
stock
unit
awards
and
the
issuance
of
common
shares
upon
settlement
of
the
awards
do
not
constitute
a
"sale"
for
purposes
of
the
Securities
Act
and
therefore
are
exempt
from
the
registration
requirements
of
the
Securities
Act.
II-2
Item 8.  Exhibits.
Exhibit
Incorporated
  by reference herein
Number
Description
Filing
Date
10.20
Amended
  and Restated 1995 Stock Option Plan
Quarterly Report on
  Form 10-Q for the period ended August 2, 2003 (File
  No. 000-30877) as Exhibit 10.20
September 15, 2003
10.34
Form of
  Notice of Stock Unit Award and Form of Stock Unit Agreement
Annual Report on
  Form 10-K for the fiscal year ended January 27, 2007 (File
  No. 000-30877) as Exhibit 10.34
July 2, 2007
5.1
Opinion
  of counsel
23.1
Consent
  of counsel (contained in Exhibit 5.1)
23.2
Consent
  of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm
23.3
Consent
  of Ernst & Young LLP,
Independent Auditors
24.1
Power
  of Attorney (included as part of the signature page of this registration
  statement)
Item 9.  Undertakings.
(a)
The
undersigned registrant hereby undertakes:
(1) To file, during
any period in which offers or sales are being made, a post-effective amendment
to this Registration Statement:
(i) to include any
prospectus required by Section 10(a)(3) of the Securities Act;
(ii) to reflect in
the prospectus any facts or events arising after the effective date of this
Registration Statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in this Registration Statement;
(iii) to include any
material information with respect to the plan of distribution not previously
disclosed in this Registration Statement or any material change to the
information in this Registration Statement;
provided, however, that
paragraphs (a)(1)(i) and (a)(1)(ii) above do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the SEC
by registrant pursuant to Section 13 or Section 15(d) of the Exchange
Act that are incorporated by reference in this Registration Statement.
(2) That, for the
purpose of determining any liability under the Securities Act, each
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from
registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.
(4) That,
for the purpose of determining liability under the Securities Act of 1933 to
any purchaser:
(i) Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall
be deemed to be part of the registration statement as of the date the filed
prospectus was deemed part of and included in the registration
statement; and
II-3
(ii) Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as
part of a registration statement in reliance on Rule 430B relating to an
offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the
purpose of providing the information required by section 10(a) of the
Securities Act of 1933 shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is
first used after effectiveness or the date of the first contract of sale of
securities in the offering described in the prospectus. As provided in Rule 430B,
for liability purposes of the issuer and any person that is at that date an
underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement
to which that prospectus relates, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
Provided,
however
,
that no statement made in a registration statement or prospectus that is part
of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of
contract of sale prior to such effective date, supersede or modify any
statement that was made in the registration statement or prospectus that was
part of the registration statement or made in any such document immediately
prior to such effective date.
(5) That, for the
purpose of determining liability of the registrant under the Securities Act to
any purchaser in the initial distribution of the securities:
The undersigned
registrant undertakes that in a primary offering of securities of the
registrant pursuant to this Registration Statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the registrant will be a seller to the purchaser and
will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary
prospectus or prospectus of the registrant relating to the offering required to
be filed pursuant to Rule 424;
(ii) Any free
writing prospectus relating to the offering prepared by or on behalf of the
Registrant or used or referred to by the undersigned registrant;
(iii) The portion of
any other free writing prospectus relating to the offering containing material
information about the registrant or its securities provided by or on behalf of
the registrant; and
(iv) Any other
communication that is an offer in the offering made by the registrant to the
purchaser.
(b)      The undersigned registrant hereby
undertakes that, for purposes of determining any liability under the Securities
Act, each filing of the registrant's annual report pursuant to Section 13(a) or
Section 15(d) of the Exchange Act (and, where applicable, each filing
of an employee benefit plan's annual report pursuant to Section 15(d) of
the Exchange Act) that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona
fide offering thereof.
(c)      Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors,
officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion
of the SEC, such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable.  In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act, and will be governed
by the final adjudication of such issue.
II-4
SIGNATURES
Pursuant to the
requirements of the Securities Act, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing
on Form S-8/S-3 and has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Santa Clara, State of California, on this 20
th
day of June 2008.
MARVELL
  TECHNOLOGY GROUP LTD.
By:
/s/
  Sehat Sutardja
Name:
  Dr. Sehat Sutardja
Title:
President and
Chief
  Executive Officer
POWER
OF ATTORNEY
KNOW ALL PERSONS BY THESE
PRESENTS, that each person whose signature appears below hereby constitutes and
appoints Dr. Sehat Sutardja and George de Urioste, and each of them acting
individually, as his attorney in fact, each with full power of substitution,
for him in any and all capacities, to sign any and all amendments to this
Registration Statement on Form S-8/S-3, and to file the same, with
exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, hereby ratifying and confirming all that
said attorney-in-fact, or his or her substitutes, may do or cause to be done by
virtue hereof.
Pursuant to the
requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons
in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Sehat Sutardja
Chairman of the Board,
  President
and Chief Executive Officer
June 20, 2008
Dr. Sehat Sutardja
(
Principal Executive Officer)
/s/ George de Urioste
Interim Chief Financial
  Officer
(
Principal Financial and Accounting
  Officer)
June 19, 2008
George de Urioste
/s/ Pantas Sutardja
Director, Vice
  President, Chief Technology
Officer, Acting Chief Operating Officer and
June 20, 2008
Dr. Pantas
  Sutardja
Chief Research and
  Development Officer
/s/ Herbert Chang
Director
June 20, 2008
Herbert Chang
/s/ Juergen Gromer
Director
June 19, 2008
Dr. Juergen Gromer
/s/ Arturo Krueger
Director
June 19, 2008
Arturo Krueger
II-5
MARVELL
TECHNOLOGY GROUP LTD.
REGISTRATION
STATEMENT ON FORM S-8/S-3
INDEX
TO EXHIBITS
Exhibit
Incorporated
  by reference herein
Number
Description
Filing
Date
10.20
Amended
  and Restated 1995 Stock Option Plan
Quarterly Report on
  Form 10-Q for the period ended August 2, 2003 (File No. 000-30877)
  as Exhibit 10.20
September 15, 2003
10.34
Form of
  Notice of Stock Unit Award and Form of Stock Unit Agreement
Annual Report on
  Form 10-K for the fiscal year ended January 27, 2007 (File
  No. 000-30877) as Exhibit 10.34
July 2, 2007
5.1
Opinion
  of counsel
23.1
Consent
  of counsel (contained in Exhibit 5.1)
23.2
Consent
  of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm
23.3
Consent
  of Ernst & Young LLP,
Independent Auditors
24.1
Power
  of Attorney (included as part of the signature page of this registration
  statement)