Fairchild Semiconductor Achieves Increased Efficiency with Electronic Payments

Positive User Experience and Increasing Adoption Prove PayMode to be a Success

PORTLAND, ME — December 17, 2001 — Fairchild Semiconductor International (NYSE: FCS) has successfully implemented PayMode®, the only bank-neutral, electronic business-to-business payment solution, into its payments process. Due to the high level of PayMode adoption among Fairchild’s vendor community, approximately half of Fairchild’s payment dollars, along with detailed remittance information, are now flowing electronically to its suppliers, service providers and other vendors.

PayMode has been seamlessly integrated with Fairchild Semiconductor’s accounts payable process and its PeopleSoft accounts payable system, allowing the company to make electronic payments to its vendors, while still working within its current accounts payable environment. The integration was completed using just four days of Fairchild Semiconductor staff time, without necessitating any changes to Fairchild’s existing treasury workflow or IT infrastructure. The Accelerated Enrollment Program was employed to quickly and efficiently enable Fairchild’s vendors to receive payments using PayMode. Once a vendor or supplier has agreed to use PayMode, enrollment takes only minutes and is accomplished easily online.

Analysts recently projected that 55 percent of companies with revenue in excess of $100 million a year will conduct purchases electronically, and 26 percent will invoice electronically. By 2005, Gartner estimates that online business-to-business transactions will reach $8.5 trillion, up from $6 trillion in 2004.

Contact: Ann McCormick , 207-771-3769,   ann_f_mccormick@fleet.com