To our shareholders,
customers and partners

During fiscal 1999, Xilinx continued to execute the roadmap we developed two years ago. Our aggressive and focused research and development (R&D) strategy has established us as the Programmable Logic Device (PLD) industry's leading innovator, consistently first to market with new technologies. This year was no exception as we released an unprecedented number of new products, positioning us solidly as the industry's leader in density, performance and overall functionality, and allowing us to enter new markets and new applications.

Over the past two years, Xilinx has made rapid advancements in process technology. We were first to market with FPGAs manufactured using 0.35-micron, 0.25-micron, and 0.22-micron technologies. During fiscal 1999, Xilinx also developed the PLD industry's first 0.18-micron prototype device. The resulting benefit to our customers is apparent - during fiscal 1999 alone, the speed of our devices has nearly doubled and the density has increased four-fold. Finally, this year Xilinx crossed another technological threshold by shipping the industry's first one-million system-gate FPGA. Our accelerated pace of innovation shows no signs of abating. The Xilinx roadmap calls for the introduction of a new product family every nine months, significantly expanding our available markets by taking our technology everywhere: from more complex applications within our traditional markets, to new and promising high-volume markets.