EXAR A NEW DIRECTION"

Mixed Signal and Data Management Solutions for a Connected World

Forward-Looking Statements """Except for historical information contained herein, this press release and matters discussed on the conference call contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the statements regarding the demand for our products and the anticipated trends in our sales and profits are forward-looking statements. The forward-looking statements are dependent on certain risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed herein. The Company urges investors to review in detail the risks and uncertainties and other factors described in its Securities and Exchange Commission, or SEC, filings, including, but not limited to, under the captions “Risk Factors”, “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our public reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2013 and the Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2013 and September 29, 2013, which are on file with the SEC and are available on our Investor webpage and on the SEC website at www.sec.gov. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Generally Accepted Accounting Principles"The Company’s non-GAAP measures exclude charges related to stock-based compensation, amortization of acquired intangible assets and inventory step-up, restructuring charges and exit costs, provisions for dispute resolutions, Merger and Acquisition and related integration costs, certain income tax benefits and credits, certain warranty charges, net change in the fair value of contingent consideration, and related income tax effects on certain excluded items. The Company excludes these items primarily because they are significant special expense and gain estimates, which management separates for consideration when evaluating and managing business operations. The Company’s management uses non-GAAP net income and non-GAAP earnings per share to evaluate its current operating results and financial results and to compare them against historical financial results.  Additionally, we disclose below the non-GAAP measure of free cash flow, which is derived from our net cash provided (used) by operations, less purchases of fixed assets and IP, plus proceeds from the sale of IP. Management believes these non-GAAP measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in evaluating the Company and provides further clarity on its profitability. In addition, the Company believes that providing investors with these non-GAAP measurements enhances their ability to compare the Company’s business against that of its many competitors who employ and disclose similar non-GAAP measures.  This financial measure may be different from non-GAAP methods of accounting and reporting used by the Company’s competitors to the extent their non-GAAP measures include or exclude other items.  The presentation of this additional information should not be considered a substitute for net income or net income per diluted share or other measures prepared in accordance with GAAP.

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Exar - Our Approach to Growth

Products Connectivity - Power Management - Data Management

Altior Plug-n-Play File System

Compression for Structured and

Unstructured Data

Cadeka Transducer Conditioning Video Transmission for Security & Surveillance

Stretch Video Processing

Security & Surveillance

Exar Connectivity - Power Management - Data Management - High Performance Analog - Video Processing

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Markets Industrial - Networking - Communications

New Products Connectivity

Power Management Data Management

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Financial Results Q3 Fiscal Year 2014 •  Revenue $30.7 million*: down from $34.0 million in the prior quarter and $31.0

million from the same quarter a year ago. The decline is dominated by an over-inventory position in Networking. Our visibility has improved and we expect the inventory to correct over the next several months. New product introductions in this area have been significant and have been well received by OEMs in both the Structured and Unstructured Big Data Market as well as high performance Security OEMs.

•  Non-GAAP Operating Income $1.7 million*: declined directly as a result of lower revenue in the Networking Market. Differentiated networking products command a higher ASP and Gross Margin than the balance of our portfolio.

•  Non-GAAP Earnings Per Fully Diluted Share $0.04*: while within the range of outcomes based on our guidance for the quarter, is disappointing. However, new products and new design wins coupled with an immediate action to curb Operating Expenses provides confidence in our strategic plan and tactical execution to drive consistent profitable growth.

*Q3 Fiscal 2014 4

Guidance Q4 Fiscal Year 2014

•  Revenue $30.0 million to $32.0 million: we expect no material revenue from major Networking OEMs this quarter as our supply chain partners deplete inventory. This positions us well for a return to growth in the June quarter with our Components business and our new Video Processor products. As Networking OEMs deplete the supply chain inventory growth is expected to accelerate.

•  Non-GAAP Gross Margin 48% to 50%: we expect no material gross profit from Networking OEMs product sales this quarter resulting in a mix that is heavily weighted to components. This positions us well for gross margin expansion as new component products carry higher ASP and GM and as we leverage our operating efficiencies into the High Performance Analog (Cadeka) Products and Video Processor Products (Stretch).

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Q1FY13"(Jun-12)"

Q2FY13"(Sep-12)"

Q3FY13"(Dec-12)"

Q4FY13"(Mar-13)"

Q1FY14"(Jun-13)"

Q2FY14"(Sept-13)"

Q3FY14"(Dec-13)"

Quarterly"Model"

Revenue" $29.3M" $30.6M" $31.0M" $31.2M" $32.6M" $34.0M" $30.7M" ≈$45M"

Gross Margin" 47%" 47%" 49%" 53%" 52%" 52%" 49%" 53% - 55%"

Op Expense" 44%" 39%" 37%" 39%" 38%" 38%" 43%" 32% - 34%"

Op Income" $0.9M" $2.2M" $3.6M" $4.3M" $4.6M" $4.8M" $1.7M" ≈$10.4M"

Operating %" 3%" 7%" 11%" 14%" 14%" 14%" 6%" ≈23%"

EPS" $0.03" $0.06" $0.09" $0.10" $0.10" $0.10" $0.04" $0.20 - $0.25"

6 *Non-GAAP Results

Exar Success Model*

Contribution by End Market Q3 Fiscal Year 2014

•  Networking and Storage - 23%*: Customers and opportunities in this market include OEMs in Big Data - Structured and Unstructured (Hadoop) - environments, Switches and Routers, Application Delivery Controllers (ADCs) and Storage providers.

•  Panther I and Panther II, coupled with our File System Compression software, address both the Compression and Security requirements of a diverse set of use cases.

•  Design win development is robust and first orders for our recently announced Panther II (XR9200 and DX2000 cards) are expected from customers in China this quarter.

•  All product categories have appropriate solutions for customers in this market; including power, connectivity and high performance analog in addition to data management.

•  Customers and Opportunities: IBM, HP, Teradata, Huawei, EMC, Cisco, Oracle, Opengear, H3C, Amax, Huawei, Sina,, Facebook, Google, F5, Citrix, Riverbed, RadWare, A10, Sangfor, Baidu, Taobao, NEC, Fujitsu, Inspur

*Q3 Fiscal 2014 7

Contribution by End Market Q3 Fiscal Year 2014 •  Industrial and Embedded Systems - 60%*: Customers and opportunities in this market

include metering of all kinds, video surveillance and security as well as automotive and medical applications.

•  The addition of High Performance Analog Products through the acquisition of Cadeka Microcircuits has quickly generated new design win opportunities and meaningful revenue.

•  Products in the HPA area are highly differentiated and therefore have significantly less competition and price pressure.

•  The recent introduction of our first Power Modules and a best-in-class Constant-On-Time Switching Controller add strength to our power management offering for industrial applications.

•  Customers and Opportunities: Parrot, Delta, Hikvision, Panasonic, Samsung, Zebra, Advantest, Veriphone, Tyco, Advantech, Kontron, Honeywell, Schneider, Rockwell Automation, Siemens, Emerson, GE, Harris, Johnson’s Control, Philips, Hitron, Motorola

*Q3 Fiscal 2014 8

Contribution by End Market Q3 Fiscal Year 2014

•  Communications Infrastructure - 17%*: Customers and opportunities in this market include all carrier class equipment providers in the Americas, Europe and Asia.

•  All four product segments have opportunities in the Communications Infrastructure Market.

•  Recently released Power Modules and the Ultra Low Drop-Out Linear Regulator are well suited for large volume use.

•  A variety of Connectivity products are widely used, including RS-232, Multi-protocol, UARTs and Bridges.

•  Customers and Opportunities: Alcatel/Lucent, ZTE, UTEK, Huawei, Nokia/Siemens, Tellabs, Marconi/Ericsson, China Telecom, Raisecom, FiberHome, Fujitsu, Ciena

*Q3 Fiscal 2014 9

New Product Introductions Q3 Fiscal 2014 •  XR9710 and XR9711 Power Modules: Single Input with Quad Output, 2X 6A Outputs and 2X

PWM Outputs, Digitally Controlled

•  XR6141- Constant-On-Time (COT) Switching Power Controller: 4.5V to 22V Input with 0.6V to 18V Output and 1% Accuracy

•  XR6274 - Ultra Low Drop Out, Low Voltage Linear Regulator: Operates down to 1.045V with 75mV Drop Out at 2A

•  XR9200 - Data Compression and Security Coprocessor: 40Gbps Operation with PCI Generation 3 Interface

•  DX2040 - Data Compression and Security Complete Solution: PCIe Generation 3 Card with XR9200 Coprocessor

•  AltraHD (Hadoop) Hardware Accelerated Compression: Available on DX1845, GX1700, DX2040 Cards and XR8200, XR9200 Coprocessors

•  XR28V382 and XR28V384 - 2 and 4 Channel UARTs: Support Intel’s Low Pin Count Bus

•  XR8051/52/54 - High Performance Precision Amplifiers: Second Source to Analog Devices

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Core Assets People, Markets and Products

Power Management Data Management

Connectivity High Performance Analog

Video Processing

Networking Industrial

Communications

Management Team - Strong Record of Success Brand Recognition - 40 Years of History

Customers - 14,000 Worldwide Channel Partners - Future, Arrow and WT

Balance Sheet ≈ $176M Cash

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Thank you Louis DiNardo

President and CEO and

Ryan Benton Chief Financial Officer