STOCKREPORTS

Integrated Silicon Solution, Inc.

NASDAQ Symbol ISSI

Recent Price 9.38 52 Wk Range 11.88 - 6.88

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BEARISH since 06/97 Rel. Strength Rank (1 Lowest - 99 Highest) 77 Insider Activity Neutral

Business Profile 05-MAY-97

ISSI designs, develops and markets high-performance SRAM and nonvolatile memory integrated circuits used in PCs, communications, instrumentation and consumer products. The company does not own or operate semiconductor fabrication facilities (fabs). Instead it seeks to form partnerships with selected semiconductor manufacturers with which it can actively participate in developing and refining the process technology used to manufacture its products. ISSI recently entered the microcontroller market by introducing two new devices, and it plans to introduce other microcontrollers this year.

Operation Review 05-MAY-97

Revenues in the first six months of FY 97 (Sep.) declined 39%, year to year, reflecting lower prices for SRAMs. Margins narrowed, on the lower average selling prices and increased R&D expenses. A net loss of $3,150,000 ($0.18 a share, on 4.0% fewer shares) contrasted with net income of $15,358,000 ($0.83). On a sequential basis, second quarter results improved from those of the first quarter, as ISSI reported slightly higher revenues and a smaller net loss. Despite a recent recovery in semiconductor demand, SRAM prices remain depressed; this should continue to hinder near-term results.

Stock Performance 18-JUL-97n

In the past 30 trading days, ISSI's shares have declined 2%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 408,520 shares, compared with the 40-day moving average of 220,463 shares.

Key Stock Statistics

Fiscal Year Ending Sep. 30

Dividend Data: No cash dividends have been paid. The company intends to retain earnings for use in its business and does not expect to pay cash dividends in the foreseeable future.

Business Summary 05-MAY-97

Integrated Silicon Solution designs, develops and markets high-performance static random access memory (SRAM) and nonvolatile memory integrated circuits used in personal computers, communications, instrumentation and consumer products.

SRAM circuits are used primarily in personal computer cache memory applications as an intermediate memory between fast microprocessors and relatively slower DRAM main memory. Cache memory increases a computer system's performance by using high-speed memory circuits to temporarily store and access frequently used instructions and data. Nonvolatile memory, which retains its contents when power is turned off, is used in a wide range of electronic systems for permanent storage of control programs and other system-related data. Nonvolatile memory products include EPROMs (erasable programmable read-only memories), EEPROMs (electrically erasable programmable read-only memories) and FLASH memories. To date, the company has derived substantially all of its revenues from the sale of SRAM products.

ISSI offers a family of CMOS SRAMs in various densities, speeds and packaging configurations. Its fastest products achieve 5-nanosecond access times, and the density levels of its products range from 64K to one megabit.

The company has adopted a fabless manufacturing strategy, that is, it does not own or operation production facilities, but it establishes collaborative manufacturing relationships with manufacturers of semiconductor wafers. ISSI targets partners with which it can actively participate in developing and refining the process technology used to manufacture its specific products and apply the technology on an accelerated basis to bring its products to market more rapidly.

The company markets and distributes its products on a worldwide basis. In FY 96 (Sep.), 53% of the company's sales were attributable to U.S. customers, 10% were attributable to European customers, and 37% were attributable to Asian customers. U.S. Robotics accounted for 22% of ISSI's net sales in FY 96.

Important Developments

Apr. '97 The company said that the sequential increase in revenues in the second quarter of FY 97 was attributable to increased customer activity which is continuing in the June quarter. ISSI also said that the outlook regarding market demand, in particular for its newer products, is positive.

Capitalization

Long Term Obligs.: $9,845,000 (3/97).

Curr. Ratio	6.1	4.8	2.5	2.0	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	6.5	16.9	3.7	3.7	NA	NA	NA	NA	NA	NA
% Net Inc.of Revs.	0.8	24.0	7.6	11.0	1.9	NM	NM	NA	NA	NA
% Ret. on Assets	0.6	25.0	14.8	23.0	3.0	NA	NA	NA	NA	NA
% Ret. on Equity	0.8	34.3	24.8	43.5	5.9	NA	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--2231 Lawson Lane, Santa Clara, CA 95094. Tel--(408) 588-0800. Website--http://www.issiusa.com Chrmn, Pres & CEO--J. Lee. EVP-Fin, CFO & Investor Contact--Gary L. Fischer. Dirs--D. P. Banatao, K.-Y. Han, H.-T. Lee, J. Lee, L.-B. Tan, C. W. Wong. Transfer Agent & Registrar--First Interstate Bank. Incorporated--in California in 1988; reincorporated in Delaware in 1993. Empl-- 380. S&P Analyst: Stephen T. Madonna, CFA

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997