EXARA NEW DIRECTION

Mixed Signal and Data Management Solutions for a Connected World

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Forward-Looking Statements This presentation contains 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. The forward-looking statements contained in this presentation include statements about future financial and operating results, economic growth rates, industry and market conditions, potential synergies and cost savings, the ability to drive growth and expand customer and partner relationships, changes in gross margins, revenues and operating expenses, manufacturing yields or operations, product development initiatives, design win conversion and other such statements. These statements are not guarantees of future performance, involve risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which the Company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Information concerning risk factors are detailed in the Company's SEC reports, including the Annual Report on Form 10-K for the year ended April 1, 2012 and the Quarterly Report on Form 10-Q for the quarters ended July 1, 2012, and September 30, 2012. Generally Accepted Accounting Principles The Company reports its financial results in accordance with GAAP. Additionally, the Company supplements reported GAAP financials with non-GAAP measures which are included in related press releases and reports furnished to the SEC, copies of which are available at the Company’s website: http://www.exar.com or the SEC’s website at: http://www.sec.gov. In this presentation, we are disclosing non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income or loss, non-GAAP net income or loss, and non-GAAP basic and diluted net income or loss per share, which are adjusted to exclude from our GAAP results all stock-based compensation expense, amortization of acquired intangible assets, restructuring charges and exit costs, provision for dispute resolution, and related income tax effects. These non-GAAP measures are presented in part to enhance the understanding of the Company’s historical financial performance and comparability between reporting periods. The Company believes the non-GAAP presentation, when shown in conjunction with the corresponding GAAP measures, provide relevant and useful information to analysts, investors, management and other interested parties. For its internal purposes, the Company uses the foregoing non-GAAP measures to evaluate performance across reporting periods, determine certain employee benefits as well as plan for and forecast the Company’s future periods. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures.

, and December 30, 2012.

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Exar Corporation

• Founded: 1971

• Headquarters: Fremont, California

• Design Centers: Silicon Valley, California; Hangzhou, China; Eatontown, New Jersey; Toronto, Canada

• Employees: 270

• Revenue: $122mm*

• Net Margin: 15% March Quarter**

• Balance Sheet: ≈$205mm Cash, No Debt

*Fiscal 2013**Non-GAAP

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Management Team• Louis DiNardo CEO 30-year Semiconductor Veteran -

• ADI, LLTC, XICOR, ISIL, EXAR

• Todd Smathers SVP Operations 30-year Semiconductor Veteran - • NSM, LLTC, XICOR, ISIL, EXAR

• Carlos Laber SVP R&D 30-year Semiconductor Veteran - • NSM, MCRL, XICOR, ISIL, ON Semiconductor, EXAR

• Steve Bakos SVP Sales 30-year Semiconductor Veteran - • NSM, LLTC, XICOR, ISIL, Conexant, EXAR

• Ryan Benton CFO 20-year Finance Executive -• eFunds, ASMI, SynapSense, EXAR

• Parviz Ghaffaripour SVP Connectivity and Power Products• Exar, NSM, MXIM, AATI, Akros Silicon, EXAR

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Exar Success Model

FY’12Results*

Q1FY13Results*

Q2FY13Results*

Q3FY13Results*

Q4FY13Results*

FY’13Results*

Long-Term Model*

Revenue $131M $29.3M $30.6M $31.0M $31.2M $122M ≈$45M

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

Operating Expense 52% 44% 40% 38% 39% 40% 32% -

34%Operating Inc/

(Loss) (5%) 3% 7% 11% 14% 9% ≈23%

EPS -$0.10 $0.03 $0.06 $0.09 $0.10 $0.28 $0.20 - $0.25

*Non-GAAP Results

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6

Operating Income/Loss*

-$6,500

-$3,750

-$1,000

$1,750

$4,500

Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11 Q1-12 Q3-12 Q1-13 Q3-13

$4,316

$3,560

$2,225

$893

-$5,384

-$2,448

$774

$134

-$5,438

-$3,079

-$1,232

-$1,967

$87

-$1,544

-$4,249-$4,744

-$3,725

-$2,930

-$404

-$1,528

-$4,968

-$6,155

Q3-13

Q1-13

Q2-13

Q4-12

*Quarterly Non-GAAP Results

$k

Q4-13

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$0

$125,000

$250,000

$375,000

$500,000

2007 2008 2009 2010 2011 2012 20130

150

300

450

600

Title

Revenue Per Employee Trend

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Strategic VisionAchievement of Success Model

• Serve High Growth Markets with Innovative Value-Added Solutions

• Big Data, Industrial Internet, Energy Conservation

• Consistent Profitable Growth• Differentiation and Diversity

• Appreciation in Shareholder Value• Non-GAAP EBIT

• GAAP and Non-GAAP EPS

• Free Cash Flow

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Market Focus

• Networking and Storage

• Industrial and Embedded Systems

• Communications Infrastructure

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Product Focus

• Power Management Products

• Connectivity Products

• Data Management Solutions

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Product Line Contribution*

21%

54%16%

9%PowerConnectivityData CompressionCommunications

*Fiscal Year 2013

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End Market Contribution*

30%

49%

20%NetworkingIndustrialCommunicationsOther

*Fiscal Year 2013

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Geographic Contribution*

27%

59%

14%AmericasAsiaEurope

*Fiscal Year 2013

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Data Compression and SecurityHardware Acceleration and Software Solutions

• Compression

• Decompression

• Acceleration

• Encryption

• Decryption

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1"

10"

100"

1000"

10000"

100000"

1000000"

10000000"

1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11"

CPU v. Storage IOPSInput Output Operations per Second

STORAGE120X Increase

Bottleneck

CPU12,000X Increase

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Data Compression and Security

• High Growth Markets Supporting Social Networking, Industrial Internet and Financial Technology

• Big Data Analytics

• Enterprise

• Cloud

• Off-Load Processing

• Lower Cost - Decrease Array Capacity

• Improve System Performance - Throughput and Latency

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Data Compression/Security Revenue

$0

$1.75

$3.50

$5.25

$7.00

Q412 Q113 Q213 Q313 Q413

$M

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Data Compression and SecurityData Warehouse Served Available Market (SAM)

Market Customers SAM

Enterprise Storage EMC, Hitachi, IBM, NetApp $80M

Big Data Analytics Teradata, Oracle, HP, IBM $80M

Cloud Storage Amazon, Microsoft, Rackspace $100M

Cloud Computing IBM, Google, Salesforce $70MNetwork Security Cisco, Juniper, Huawei, F5 $140M

VOIP Security Acme Packet, Cisco $25M

Remote Replication HP, IBM, Raytheon $30M

TOTAL $525M

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Data Compression ApplicationOff-Load Processor and Software Compression

Engine with PCIe Interface

WAN

1GbE/10GbE

ExarDX1845

PCIe

PCIe

PCIe

PCIe

EXARDX1845

CLOUD

ENTERPRISE

CPU

SUB

-SYSTEM

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Altior AcquistionUnstructured Data - MapReduce Hadoop

Hardware

Software

Software

Hardware

Exar Altior

+

Hardware

Software

=

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Altior CeDeFS SolutionPlug-and-Play

Transparent File System Compression

Applications

Native Linux Kernel

CeDeFS

Native Linux FS

Storage Volume Panther I, II or AltiorPCIe Card

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DC&S Road MapStructured and Unstructured Data Solutions

ASIC

ASIC

ASIC

ASIC

FPGA ASIC

Panther I6.2Gbps X 4 = 25Gbps

Application Level Integration

Altior 12Gbps

CeDe FS Transparent File System Integration

Panther II 40Gbps

CeDeFS Transparent File System Integration

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Power Management Products

• Analog Power Management

• Switching Regulators

• Switching Controllers

• Linear Regulators

• Supervisory Controllers

• Programmable Power

• Multiple Output Synchronous Buck Controllers

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• Intelligent Power Supplies

• Power Telemetry and Energy Monitoring and Conservation

• High Level of Integration for FPGA and SoC Requirements

• Proliferation of Low Voltage Rails

• Energy Conversation

• Faster Clock Speeds and Smaller Geometries

• Module Power

• Ease of Use for Industrial Infrastructure Applications

• Compact Reliable Design for Infrastructure Designs

Power Management Trends

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Power Management Market• Programmable Power ($150M TAM)

• 100+ Customers in Production- X86/ARM Servers, Base Stations, Teleconferencing, Video Surveillance, Cable Modems, Home Gateways

• Value: Lowest Cost, Highest Integrations Solution

• Linear Products ($3.5B TAM)

• 3800+ Customers - Industrial, Automotive, Networking and Communications. Focus: >1.5A ($200M SAM)

• Value: Broad Portfolio with Low Voltage Low Drop-out Performance

• Non-Isolated DC-DC Switching Regulators ($3.5B TAM)

• 750+ Customers. Focus: > 5A Buck Regulator ($300 SAM)

• Value: Broad Portfolio with Light Load Efficiency

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Calxeda Energy Card*One XRP per ARM Core*Ease of Design*Improved Time to Market*Dynamic Scaling*Field Upgradeable*Highly Integrated

Exar Programmable Power for Calxeda ARM Core Micro-servers

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Exar Programmable PowerSINGLE INPUT - FOUR OUTPUT

ANALOG FEATURES EXAR

147 # OF COMPONENTS 33DISCRETE SOFT-START YES

DISCRETE MARGINING YES

DISCRETE SEQUENCE & TRACK YES

NO DYNAMIC CONTROL YES

NO FAULT MANAGEMENT YES

NO I2C INTERFACE YES

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Connectivity

• Bridges

• UARTs

• USB

• PCIe

• I2C

• Transceivers

• Differential

• Serial

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Connectivity ProductsTotal Available Market (TAM)

$150M$500M

$300M

$1,500M

UARTsTransceiversBridgesDigital

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Connectivity ApplicationUART and Transceiver

UART UARTRS232RS485

RS232RS485

Distance

EQUIPMENT

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Connectivity ProductsUARTS, Bridges and Transceivers

Embedded

IndustrialPoint-of-Sale

Comm

ComputingServers

Consumer

Valu

e

Volume

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Exar Summary

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Core Assets, Markets and Products

Power ManagementData Management

Connectivity

NetworkingIndustrial

Communications

Management Team - Strong Record of SuccessBrand Recognition - 40 Years of History

Customers - 14,000 WorldwideChannel Partners - Future, Arrow and WT

Balance Sheet ≈ $200M Cash

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Exar Success Model

FY’12Results*

Q1FY13Results*

Q2FY13Results*

Q3FY13Results*

Q4FY13Results*

FY’13Results*

Long-Term Model*

Revenue $131M $29.3M $30.6M $31.0M $31.2M $122M ≈$45M

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

Operating Expense 52% 44% 40% 38% 39% 40% 32% -

34%Operating Inc/

(Loss) (5%) 3% 7% 11% 14% 9% ≈23%

EPS -$0.10 $0.03 $0.06 $0.09 $0.10 $0.28 $0.20 - $0.25

*Non-GAAP Results

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Thank youLouis DiNardo

President and CEOand

Ryan BentonChief Financial Officer

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