FORIMMEDIATE RELEASE

Financial Contact:             Mike Knapp IDT Investor Relations Phone:  (408) 284-6515 E-mail:  mike.knapp@idt.com Press Contact: Carolyn Robinson IDT Worldwide Marketing Phone:  (408) 284-8200 E-mail:  carolyn.robinson@idt.com

IDT REPORTS STRONG SEQUENTIAL REVENUE AND PROFIT GROWTH

Fiscal Q2 Revenue Increased 20 Percent Q/Q to $139.5 Million

Gross Margin and EPS Above High End of Projections

SAN JOSE, Calif., Oct. 27, 2009 — IDT® (Integrated Device Technology, Inc.; NASDAQ: IDTI), a leading provider of essential mixed signal semiconductor solutions that enrich the digital media experience, today announced results for the fiscal second quarter ended September 27, 2009.

“Revenue, gross margin and EPS for our fiscal second quarter 2010 were all above the high end of our prior projections provided on July 28, 2009,” said Dr. Ted Tewksbury, president and CEO of IDT.  “We achieved a 20 percent sequential increase in revenue driven by strong demand across all three of our end markets – consumer, computing, and communications.  Solid revenue contributions from core businesses, like PC clocks and gaming, were augmented by significant revenue increases in new growth areas like video and serial switching.  Non-GAAP gross margin increased by 4 percent sequentially to over 50 percent, driven by higher revenue, improved product mix and increased fab utilization.  These improvements, combined with accelerated synergies from our recent Tundra Semiconductor acquisition, enabled us to deliver non-GAAP EPS of $0.07.  Overall, this quarter demonstrated that IDT’s strategy of expanding our core strengths while layering on new growth segments is producing positive results and considerable operating leverage.”

Recent Highlights

Recently, IDT announced:

·   the IDT PanelPort™ LinkXtend™ solution – a DisplayPort™-based single chip device that extends cables for PCs and mobile computers to connect to monitors and projectors

·   the newest members of the IDT PureTouchTM family of capacitive touch devices, targeting computing, white goods and portable devices

·   a new family of Power Smart audio codecs that are designed to serve the audio needs of today’s business and consumer desktops

·   its Serial RapidIO Gen2 program consisting of a comprehensive portfolio of IP, switches, evaluation platforms and tools

·   its new family of embedded clocks that are ideal for embedded applications or any computing system that is hidden from view and runs a real-time operating system

·   an agreement to transfer product fabrication processes and related activities currently running in the IDT Hillsboro, Oregon facility to TSMC foundries

 The following highlights the Company’s financial performance on both a GAAP and non-GAAP basis.  The GAAP results include certain costs, charges, gains and losses in accordance with GAAP which are excluded from non-GAAP results based on management’s determination that they are not directly reflective of on-going operations.  Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies.  Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP.  A complete reconciliation of GAAP to non-GAAP results is attached to this press release.

·   Revenue for the fiscal second quarter of 2010 was $139.5 million, compared with $200.5 million reported in the same period one year ago.

·   GAAP net income for the fiscal second quarter of 2010 was $60.5 million or $0.36 per diluted share, versus GAAP net income of $11.7 million or approximately $0.07 per diluted share in the same period one year ago.  Fiscal second quarter 2010 GAAP results include an $82.7 million gain from the sale of the Company’s network search engine business, $14.4 million in restructuring related charges, $14.1 million in acquisition related charges of which $6.1 million is related to the amortization of acquisition related intangibles, $3.9 million of stock-based compensation and $2.0 million in tax adjustments.

·   Non-GAAP net income for the fiscal second quarter of 2010 was $12.2 million or $0.07 per diluted share, compared with non-GAAP net income of $43.3 million or $0.25 per diluted share reported in the same period one year ago.

·   GAAP gross profit for the fiscal second quarter of 2010 was $51.1 million, compared with GAAP gross profit of $87.2 million in the same period one year ago.  Non-GAAP gross profit for the fiscal second quarter of 2010 was $70.2 million, compared with non-GAAP gross profit of $102.8 million reported in the same period one year ago.

·   GAAP R&D expense for the fiscal second quarter of 2010 was $41.5 million, flat from the same period one year ago.  Non-GAAP R&D expense for the fiscal second quarter of 2010 was $35.9 million, compared with Non-GAAP R&D of $36.3 million in the same period one year ago.

·   GAAP SG&A expense for the fiscal second quarter of 2010 was $30.7 million, compared with GAAP SG&A expense of $32.2 million in the same period one year ago. Non-GAAP SG&A expense for the fiscal second quarter of 2010 was $21.9 million, compared with non-GAAP SG&A expense of $24.1 million in the same period one year ago.

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Company’s quarterly financial conference call at http://www.IDT.com.  The live webcast will begin at 1:30 p.m. Pacific time on October 27, 2009.  The webcast replay will be available after 5:00 p.m. Pacific time on October 27, 2009.

Investors can also listen to the live call at 1:30 p.m. Pacific time on October 27, 2009 by calling (800) 230-1085 or (612) 234-9960.  The conference call replay will be available after 5:00 p.m. Pacific time on October 27, 2009 through 11:59 p.m. Pacific time on November 3, 2009 at (800) 475-6701 or (320) 365-3844.  The access code is 117387.

About IDT

With the goal of continuously improving the digital media experience, IDT integrates its fundamental semiconductor heritage with essential innovation, developing and delivering low-power, mixed signal solutions that solve customer problems. Headquartered in San Jose, Calif., IDT has design, manufacturing and sales facilities throughout the world. IDT stock is traded on the NASDAQ Global Select Stock Market® under the symbol "IDTI". Additional information about IDT is accessible at www.IDT.com.

Forward Looking Statements

Investors are cautioned that forward-looking statements in this release, including but not limited to statements regarding demand for Company products, customer ordering patterns, channel inventory, anticipated trends in Company sales, expenses and profits, and macroeconomic conditions involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations.  Risks include, but are not limited to, global business and economic conditions, fluctuations in product demand, manufacturing capacity and costs, inventory management, competition, pricing, patent and other intellectual property rights of third parties, timely development and introduction of new products and manufacturing processes, dependence on one or more customers for a significant portion of sales, successful integration of acquired businesses and technology, availability of capital, cash flow and other risk factors detailed in the Company’s Securities and Exchange Commission filings.  The Company urges investors to review in detail the risks and uncertainties in the Company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the fiscal year ended March 29, 2009.  All forward-looking statements are made as of the date of this release and the Company disclaims any duty to update such statements.

Non-GAAP Reporting

The Company presents non-GAAP financial measures because the financial community uses non-GAAP results in its analysis and comparison of historical results and projections of the Company's future operating results. These non-GAAP results exclude impairment charges, acquisition-related charges, share-based compensation expense and certain other expenses and benefits.  Management uses these non-GAAP measures to manage and assess the profitability of the business.  These non-GAAP results are also consistent with another way management internally analyzes IDT’s results and may be useful.  The Company has reconciled such non-GAAP results to the most directly comparable GAAP financial measures in the financial tables at the end of this press release.

Reference to these non-GAAP results should be considered in addition to results that are prepared under current accounting standards, but should not be considered a substitute for results that are presented in accordance with GAAP. It should also be noted that IDT's non-GAAP information may be different from the non-GAAP information provided by other companies.

###

IDT, Hollywood Quality Video, HQV, PanelPort, Tundra, Vida, ViewXpand and the IDT logo are trademarks or registered trademarks of Integrated Device Technology, Inc. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended									Six Months Ended
	Sept 27,			June 28,			Sept 28,			Sept 27,			Sept. 28,
	2009			2009			2008			2009			2008
Revenues	$	139,504		$	115,954		$	200,541			255,458			388,749
Cost of revenues		88,373			68,789			113,388			157,162			217,137
Gross profit		51,131			47,165			87,153			98,296			171,612
Operating expenses:
Research and development		41,455			36,315			41,532			77,770			85,151
Selling, general and administrative		30,662			25,435			32,211			56,097			65,176
Total operating expenses		72,117			61,750			73,743			133,867			150,327
Operating income (loss)		(20,986	)		(14,585	)		13,410			(35,571	)		21,285
Gain on divestiture		82,747			-			-			82,747			-
Interest income and other, net		1,199			1,425			384			2,624			1,849
Interest expense		(11	)		(19	)		(15	)		(30	)		(33	)
Income (loss) before income taxes		62,949			(13,179	)		13,779			49,770			23,101
Provision for income taxes		2,409			942			2,104			3,351			2,272
Net income (loss)	$	60,540		$	(14,121	)	$	11,675			46,419			20,829
Net income (loss) per share:
Basic	$	0.37		$	(0.09	)	$	0.07		$	0.28		$	0.12
Diluted	$	0.36		$	(0.09	)	$	0.07		$	0.28		$	0.12
Weighted average shares:
Basic		165,591			165,430			169,570			165,511			170,325
Diluted		166,075			165,430			169,752			165,853			170,586

INTEGRATED DEVICE TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP

(Unaudited)

(in thousands)

	Three Months Ended									Six Months Ended
	Sept 27,			June 28,			Sept. 28,			Sept. 27,			Sept. 28,
	2009			2009			2008			2009			2008
GAAP Net Income (Loss)	$	60,540		$	(14,121	)	$	11,675		$	46,419		$	20,829
GAAP Diluted Income (Loss) Per Share	$	0.36		$	(0.09	)	$	0.07		$	0.28		$	0.12
Acquisition Related:
Amortization of acquisition related intangibles		6,109			5,219			20,592			11,328			41,452
Acquisition related costs (1)		353			3,593			(3	)		3,946			(6	)
Gain on divestiture of NWD assets		(82,747	)		-			-			(82,747	)		-
Assets impairment		-			2,002			-			2,002			-
Inventory FMV amortization		7,634			-			-			7,634			-
Restructuring Related:
Severance and retention costs		14,021			1,479			471			15,500			1,305
Facility closure costs (2)		13			23			19			36			95
Fabrication production transfer costs		322			-			-			322			-
Other:
Compensation expense (benefit)—deferred compensation plan (3)		1,112			889			(751	)		2,001			(715	)
Loss (gain) on deferred compensation plan securities (3)		(1,111	)		(876	)		711			(1,987	)		689
Stock-based compensation expense		3,919			4,260			8,642			8,179			16,771
Tax effects of Non-GAAP adjustments (4)		2,028			1,008			1,910			3,036			2,034
Non-GAAP Net Income	$	12,193		$	3,476		$	43,266		$	15,669		$	82,454
Non-GAAP Diluted Earnings Per Share	$	0.07		$	0.02		$	0.25		$	0.09		$	0.48
Weighted average shares:
Basic		165,591			165,430			169,570			165,511			170,325
Diluted		166,075			165,575			169,752			165,853			170,586
GAAP gross profit		51,131			47,165			87,153			98,296			171,612
Acquisition Related:
Amortization of acquisition related intangibles		4,262			3,920			14,570			8,182			29,341
Assets impairment		-			2,002			-			2,002			-
Inventory FMV amortization		7,634			-			-			7,634			-
Fabrication production transfer costs		322			-			-			322			-
Restructuring Related:
Severance and retention costs		5,708			55			-			5,763			656
Facility closure costs (2)		4			8			3			12			28
Other:
Compensation expense (benefit)—deferred compensation plan (3)		156			124			(105	)		280			(99	)
Stock-based compensation expense		995			626			1,184			1,621			1,970
Non-GAAP gross profit		70,212			53,900			102,805			124,112			203,508
GAAP R&D Expenses:		41,455			36,315			41,532			77,770			85,151
Acquisition Related:
Amortization of acquisition related intangibles		-			-			(19	)		-			(38	)
Acquisition related costs (1)		-			2			2			2			4
Restructuring Related:
Severance and retention costs		(2,057	)		(930	)		(453	)		(2,987	)		(460	)
Facility closure costs (2)		(5	)		(11	)		(16	)		(16	)		(53	)
Other:
Compensation expense (benefit)—deferred compensation plan (3)		(600	)		(480	)		406			(1,080	)		383
Stock-based compensation expense		(2,930	)		(2,745	)		(5,149	)		(5,675	)		(10,301	)
Non-GAAP R&D Expenses		35,863			32,151			36,303			68,014			74,686
GAAP SG&A Expenses:		30,662			25,435			32,211			56,097			65,176
Acquisition Related:
Amortization of acquisition related intangibles		(1,847	)		(1,299	)		(6,003	)		(3,146	)		(12,073	)
Acquisition related costs (1)		(353	)		(3,595	)		1			(3,948	)		2
Restructuring Related:
Severance and retention costs		(6,256	)		(494	)		(18	)		(6,750	)		(189	)
Facility closure costs (2)		(4	)		(4	)		-			(8	)		(14	)
Other:
Compensation expense (benefit)—deferred compensation plan (3)		(356	)		(285	)		240			(641	)		233
Stock-based compensation expense		6			(889	)		(2,309	)		(883	)		(4,500	)
Non-GAAP SG&A Expenses		21,852			18,869			24,122			40,721			48,635
GAAP Interest income and other, net		1,188			1,406			369			2,594			1,816
Loss (gain) on deferred compensation plan securities (3)		(1,111	)		(876	)		711			(1,987	)		689
Non-GAAP Interest income and other, net		77			530			1,080			607			2,505
GAAP Provision for Income Taxes		2,409			942			2,104			3,351			2,272
Tax effects of Non-GAAP adjustments (4)		(2,028	)		(1,008	)		(1,910	)		(3,036	)		(2,034	)
Non-GAAP Provision for Income Taxes		381			(66	)		194			315			238

(1)  Consists of costs incurred in connection with merger and acquisition-related activities, including legal and accounting fees.  Also includes costs associated with our merger with ICS and acquisition of Tundra, such as additional depreciation resulting from purchase accounting and costs associated with the exit of previously leased facilities.

(2)  Consists of ongoing costs associated with the exit of our leased facilities.

(3) Consists of gains and losses on marketable equity securities related to our deferred compensation arrangements and the changes in the fair value of the assets in a separate trust that is invested in Corporate owned life insurance under our deferred compensation plan.

(4) Consists of the tax effects of non-GAAP adjustments related to acquisitions and stock-based compensation expense.

INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	Sept 27,		March 29,
(In thousands)	2009		2009
ASSETS
Current assets:
Cash and cash equivalents	$	176,460	$	136,036
Short-term investments		182,401		160,037
Accounts receivable, net		59,897		54,894
Inventories		64,634		69,722
Deferred Taxes		1,696		1,696
Prepaid and other current assets		21,674		19,881
Total current assets		506,762		442,266
Property, plant and equipment, net		72,287		71,561
Goodwill		101,225		89,404
Acquisition-related intangibles		65,201		50,509
Other assets		26,495		24,627
TOTAL ASSETS	$	771,970	$	678,367
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	35,988	$	25,837
Accrued compensation and related expenses		19,251		18,820
Deferred income on shipments to distributors		17,010		16,538
Income taxes payable		3,471		457
Other accrued liabilities		30,336		21,206
Total current liabilities		106,056		82,858
Deferred tax liabilities		3,381		3,220
Long term income taxes payable		21,011		20,907
Other long term obligations		25,794		14,314
Total liabilities		156,242		121,299
Stockholders' equity		615,728		557,068
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	771,970	$	678,367