The document provides an analysis of Analog Devices, Inc. (ADI) conducted by Penn State Investment Association. It summarizes ADI's business operations, financial performance, growth opportunities in key markets like industrial and healthcare, and risks. It also benchmarks ADI against competitors and provides projections. The top three reasons recommended to "bench" or not invest in ADI currently are not stated.

1. Penn State Investment AssociationInformation Technology Sector Analog Devices, Inc. (ADI) NYSE Joe Eirkson, Katie Lally, Matt Lochansky The Nittany Lion Fund, LLC.

2. Team Recommendation: Bench Top Three Reasons to Bench:

4. New organizational structure in 2009 introduced two focus groups:

5. Core Products and Technologies (CPT): product focused

6. Strategic Market Segments (SMS): end market focused

7. Operates in 18 countries60,000 customers

8. Headquartered in Norwood, Massachusetts

9. Employs approximately 8,300 people

10. Operational business segments include: Industrial, Communication, Consumer, Automotive and ComputerCEO Jerald Fishman 3

11. Revenue Breakdown

13. Shift in motor control technology increased demand for signal processing

14. Demand driven by customers’ needs for increased:

15. Energy efficiency

16. Industrial automation

17. Advanced instrumentation

18. Significant growth opportunities in Asian markets—particularly China

19. Expected 10-14% growth over 5 years

20. Increased demand for imaging and patient monitoring

21. ADI is a market leader

22. Strategic partners optimistic about 2011 spending

23. Healthcare trends to increase demand:

24. Increased need for highest speed and channel count in medical imagining systems

25. Demand for improved measurementincrease diagnostic accuracy

26. Expansion of telemedicine; portability

28. Best-in-Class—Data Converters Market leader in data converter technology (46% market share--exposed to literally every region) In 2010, accounted for 47% of sales (29% increase from 2009) Data converter market expected to increase 9% every year through 2015 Demand for ADI converter technology driven by: Proliferation of digital systems Increasing number of channels of signal processing in new, emerging applications Data converters determine the overall performance of a systemADI offers high-performance, best-in-class solutions Continuously improving architecture and process technologies to meet customers’ needs Customer Design Process: Begins with ADI data converters incorporates other components of ADI product portfolio

29. Company Risk Dependence on third-party subcontractors: Relies on subcontractors and third-party wafer fabricators Generates 50% of its revenue from products at third-party wafer-fabrication facilities Risks: reduced control over availability, capacity utilization, delivery schedules, manufacturing yields and quality and assurance costs Lack of long-term sales contracts: Demand may be volatile in certain end-markers (Long-term contracts are unusual for Semi companies due to constant technological change and upgrades) Intense competition: Technological Pricing Fluctuations in foreign currency: Very sensitivederives 80% of revenue from international markets

31. Most semiconductor companies carry risk due to increasing R&D expenses in the industry

32. Higher inventory levels, lower utilization rates and softer orders pose risks to industry’s profitability

34. Play to reduce exposure to the Auto Industry

35. Negative outlook for Autos for the next 1-2 years

36. Auto market accounts for only 13% of ADI’s revenues v. 22% of ONNN’s revenues

37. Diversify geographic exposureless reliance on one region (like ONNN and Japan)Current Allocation Proposed Allocation 10

38. Comparable Analysis 11

39. Ratio Analysis 12

40. Five Year Summary 13

41. Growth Analysis & CAGRs 14

42. Projections 15

43. Discounted Cash Flow 16

44. One Year Stock Chart 17

45. Debt Distribution 18

46. Team Recommendation: Bench Top Three Reasons to Bench:

47. Questions or Comments?