ISSI is a fabless semiconductor company that provides high-quality specialty memory, flash and analog mixed signal products. It has a diversified portfolio of products including SRAM, DRAM, flash and analog solutions targeting the automotive, industrial, communications and consumer markets. ISSI has delivered solid revenue growth over the past several years and aims to continue growing by expanding its product offerings in areas like flash memory and analog solutions while focusing on specialty, long life cycle products and avoiding commodity memory.

1. DRAFT
Sustainable Innovation Strong Stockholder Returns
Diversified Growth
Saturday, March 07, 2015www.issi.com

2. 2© 2015 ISSI, INC. - ALL RIGHTS RESERVED
This presentation and our related comments contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Among other things,
statements concerning our markets, growth strategy, financial projections, financial trends,
financial model and uses of cash are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those anticipated. Such
risks and uncertainties include supply and demand conditions in the market place
(especially in the automotive market and the industrial market), unexpected reductions in
average selling prices for our products, our ability to sell our products in our key markets
(including automotive and industrial) and the pricing and gross margins achieved on such
sales, our ability to continue to control or reduce operating expenses, our ability to obtain a
sufficient supply of wafers, wafer pricing, our ability to maintain sufficient inventory of
products to satisfy customer orders, our ability to realize the expected benefits of our
acquisitions including maintaining relationships with key customers, vendors and
employees, changes in manufacturing yields, order cancellations, order rescheduling,
product warranty claims, competition, the level and value of inventory held by OEM
customers, the outcome of any existing or future litigation involving intellectual property or
other matters or other risks listed from time to time in our filings with the Securities and
Exchange Commission, including our Form 10-K for the fiscal year ended September 30,
2014. We assume no obligation to update or revise the forward-looking statements in this
presentation because of new information, future events, or otherwise.

3. • High quality specialty memory, flash and analog
mixed signal products
• Founded in 1988, IPO in 1995
• Headquarters: Milpitas, CA
• Solid growth: 2009-2014 revenue CAGR 16.4%
• Business model similar to a broad line fabless
analog company
Corporate Facts
• FQ1’15 revenue of $80.9M
• Automotive revenue +10.0%, Industrial +8.0% YoY
• 36.0% gross margin in FQ1’15
• $132.1M cash and investments
• Initiated $0.06 per share quarterly dividend in
August 2014
Financial Highlights at Dec 31
• High Speed Memory – Synch SRAM, asynch, high
performance, legacy, QUAD and DDR & RLDRAM®
• DRAM - Low to high density DRAM, SDRAM, DDR,
DDR2, DDR3 for specific applications
• NOR Flash – industry standard NOR Flash products
and embedded non-volatile solutions
• Analog - Audio power amplifiers, sensors and LED
drivers for backlighting and display
• Automotive
• Industrial
• Communications
• Specialty Consumer
3© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Diverse Products
Growing End Markets
3

4. 4© 2015 ISSI, INC. - ALL RIGHTS RESERVED
• Safety, driver information, clusters, infotainment expanding
• Average semiconductor content increased from $142 to $380¹
in past 5 years, projected to double in next 5 years.
• Advancing functionality driving the transition to higher
performance products: DDR2, DDR3, LPDDR2
• Adjacent flash and analog market growth opportunities:
lighting, media and intelligent systems
Automotive
• Increasing digital content in core industrial applications
significantly increasing demand
• Flash product introductions dramatically increase the TAM
• Enhanced strategic account program with expanded
distribution partnerships
• New products: Power saver SRAMs, mDDR, LPDDR2,
SRAM’s with ECC
Industrial
• Rising connectivity driving memory demand
• Exponential growth in data traffic creates need for new
networking memory technology
• Increasing advanced network build-out activity for LTE in
China and U.S.
• Europe presents future opportunity for infrastructure
investment
Communications
ISSI delivers high-quality, long-lifecycle, specialty memory, flash and analog devices
• Exited low gross margin and commodity lines
• Focused on longer life cycle products
• New analog HBLED, FXLED, sensor and audio driver product
lines driving revenue from key customers
• Ramping lower cost, more diversified flash products to
meet specific customer needs
Consumer
1. Morgan Stanley Blue Paper on Autonomous Cars

5. 5© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Auto
47%
Industrial
23%
Comm’s
15%
Consumer
15%
ISSI Fiscal 2014 Revenue: $329 Million
Automotive
 Telematics
 Infotainment
 Satellite Radio
 Engine Control
 Braking Systems
 Cluster/ Center Stack
 Body Electronics
 Camera Systems
Industrial
 Imaging & Diagnostics
 POS Terminal
 Bar Code Scanning
 Medical
Instrumentation
 Data Acquisition/PLC
 Energy Meters
Communications
 Base Station
 Switches
 Routers
 xDSL, xPON
 VoIP, WLAN
 Fiber Channel Storage
Digital Consumer
 DTV/LCDTV
 Set Top Boxes
 Digital Cameras
 Gaming/PC Peripherals
 Portable Media Players
 Cell Phones/ Camera
 HDD

6. Automotive Communications Digital Consumer
© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Industrial
No end customers over 10% of revenue
6

7. • Target designs requiring multi-year product support
• Longer-term pricing arrangements
• Support for customers from legacy to next generation applications
World Class Quality
Supporting Long Life Cycle
Products
• Broad specialty supplier of DRAM, SRAM, Flash and Analog solutions
• Focus on stable, high growth markets; avoids exposure to commodity pricing
• Gaining share and increasing content across key Tier-1 customers
High Value Specialty Products
for Growing Markets
• QUAD SRAM, DDR3, mDDR and RLDRAM® expand addressable markets
• Analog and flash add complementary solutions with targeted key customers
• New development efforts for advanced solutions at large global customers
Technology Leadership/
Expanded Product Offerings
7© 2015 ISSI, INC. - ALL RIGHTS RESERVED
• Growing electronic content and more advanced demands in automotive
• Increasing mobile data and IP traffic growth in communications
• Greater memory use and larger analog product content in industrial
Favorable Market Dynamics
7

8. 8© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20 Years
celebration on
Nasdaq
(Feb. 2015)
Initiated Regular
Quarterly
Dividend
Recorded $21.2M in
investment gains
through FY14
$1.8M
(Initial
Dividend)
Introduced DTR Serial NOR
Flash, Industry’s First 115C
DRAM & 8Gb DDR3 Solutions
Entered the
Automotive LED
Lighting Market
Signed HyperRAM
Development Agreement
Signed License for Serial
and Parallel Flash +
HyperBus products
Signed Flash
Memory IP License
Launched Analog
Class D Audio Amp
Introduced 1Gb
LPDDR2 DRAM
SMIC introduced ISSI’s
55nm embedded flash

9. A Perfect Fit for ISSI
• Qualified auto memory supplier since 1999
• High requirement products: temperature,
lifespan, exposure, materials, quality
• Only supplier in the industry to offer 115C
DRAM and 125C SRAM
• Focus on high quality and long-term support
• Analog and Flash expand product portfolio
with HBLED, PA and Flash applications
Telematics, Infotainment, GPS,
Camera Systems, Autonomous
Driving, Safety Clusters, HBLED,
Audio Amplifiers
9
FY2009-FY2014 CAGR 43%*
Market Dynamics
• >$1.0 billion market opportunity and growing ¹
• Long product cycles, high entry barriers
• Increased attention to second sourcing
• New products and rising semi content driving
growth
$0
$50
$100
$150
$200
$250
2009 2014 2019 Target*
ISSI Auto Market Revenue ($ Millions)
*2019 revenue estimate based on ISSI projections for the Automotive
market. Please refer to safe harbor on forward looking statements.
1. Market information from multiple analyst reports and internal estimates

10. $0
$200
$400
$600
$800
$1,000
$1,200
2008 2009 2010 2011 2012 2013 2014 2015
Body Cntl
Safety
Engine Control
DIS
Entertainment
10© 2015 ISSI, INC. - ALL RIGHTS RESERVED
$M
ISSI Focus Markets:
Safety
• US, EU Camera legislation
• Increasing radar/ultrasonics
• Lane departure, braking
systems
Driver Information Systems (DIS)
• GPS and HUD enhancements
• Large integrated displays
• Fast growth in center stack
displays and clusters
Entertainment
• Software controlled radio
• Satellite radio
• Increasing video options
1. Market information from Strategy Analytics

11. 11© 2015 ISSI, INC. - ALL RIGHTS RESERVED
$26
$49
$71
$109
$140
$155
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
2009 2010 2011 2012 2013 2014
FY 2009 Business Traction
FY 2014 Business TractionISSI Fiscal Year Automotive Revenue
Incremental Applications:
Key Applications:
ISSI Automotive Customers
North America Europe Asia
• Engine Control
• Satellite Radio
• Cruise Control
• Telematics
• GPS
• Multiple cameras
• Heads-up display
• Radar Detection
• Infotainment
• Blind Spot Warning
• LDWS
• Bluetooth
• Collision Avoidance
• Integrated Console
• Wi-Fi
• Internal & external
LED lighting

12. 12© 2015 ISSI, INC. - ALL RIGHTS RESERVED
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2014
SRAM DRAM
($ in Millions)
2010 2011 2012 2013 2014 2015
SDRAM DDR mDDR DDR2 DDR3 LPDDR2
DRAM Technology
1. Market information from Strategy Analytics

13. 13© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Growth Drivers
• Key memory drivers: safety, driver
information, clusters, infotainment
• Average semiconductor content expected to
double in next 5 years¹
• More advanced functionality drives the
transition to higher performance products:
DDR2, DDR3, LPDDR2
• Flash and analog expand market growth
opportunities at key customers: lighting,
media and intelligent systems
The ISSI Advantage
• High industry quality standards
• Extended temperature range
• Diverse and growing product catalog
• Reduced qualification costs
• Long-term supply & pricing arrangements
• Long-term support capability
• Competitive front-end cost and total life cost
ISSI is gaining share through its focus on quality, key
suppliers, long-term support, and new products
1. Market information from multiple analyst reports

14. Market Dynamics
• Broad $1.4 billion market ¹, diverse
requirements, primarily legacy driven
memory technologies
• Strong penetration in process control, smart
meter, medical imaging and home health
Process Control, Imaging &
Diagnostics, Smart Meters, POS
Terminal, Instruments
14
A Perfect Fit for ISSI
• Energy efficiency and clean energy driving
demand; greater electronic content in
medical and industrial products
• High quality legacy products, coupled with
long-term stable supply make ISSI a global
supplier
• Addition of flash and analog adds value and
content for customers – audio, lighting,
smart meters, sensors, etc.FY2009-FY2014 CAGR 39%*
$0
$20
$40
$60
$80
$100
$120
$140
$160
2009 2014 2019 Target*
ISSI Industrial Revenue ($ Millions)
*2019 revenue estimate based on ISSI projections for the Industrial
market. Please refer to safe harbor on forward looking statements.
1. Market information from multiple analyst reports and internal estimates

15. 15© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Growth Drivers
• Key memory drivers: increasing digital content
in core industrial applications
• Automation, AC drives/PLC, smart grids, smart
meters increasing demand
• Flash product introductions dramatically
increase the TAM
• Enhanced strategic account program with
expanded distribution partnerships
• New products: Power saver SRAMs, mDDR,
LPDDR2, SRAM’s with ECC
The ISSI Advantage
• High industry quality standards
• Expanding product catalog
• Long-term support capability & pricing
arrangements
• Legacy support plus next generation
products from a single supplier
• Analog and flash capabilities increase total
solution opportunity
ISSI is positioned to gain share through a broader
product line and expanded distribution capabilities

16. A Perfect Fit for ISSI
• High bandwidth applications driving
communication infrastructure growth
• Expanded QUAD SRAM and RLDRAM® 2 & 3
moves ISSI to the forefront of new high
performance memory technology platforms
• Tier 1 custom memory support plus
development of HBM position ISSI to be a
long-term leader
• Flash expands market opportunity in
networking solutions
Base Station, Switches, Routers,
xDSL, PON, VOIP, Fiber Channel
Storage, WLAN
16
Market Dynamics
• $1.7 billion SRAM and DRAM market¹
• Higher performance memory and long-term
support requirements
• Increased infrastructure spending needed to
drive revenue growth
$0
$20
$40
$60
$80
$100
$120
2009 2014 2019 Target*
ISSI Comm Revenue ($ Millions)
*2019 revenue estimate based on ISSI projections for the Communications market.
Please refer to safe harbor on forward looking statements.
1. Market information from multiple analyst reports and internal estimates

17. 17© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Expanded product offerings and second source needs
drive ISSI’s growth as infrastructure investment returns
Growth Drivers
• Increasing device connectivity drives
demand for memory solutions
• Exponential growth in data traffic creates
need for new networking technology
• Rapid increase in bandwidth demand
• Increasing advanced network build-out
activity for LTE in China and U.S.
• Europe presents future opportunity for
infrastructure investment
The ISSI Advantage
• Strategic supplier relationships with global
OEMs
• RLDRAM® second source opportunities provide
future growth
• SRAM, DRAM, Flash capability in a single source
• Guaranteed legacy support for older designs,
new designs for current products
• QUAD and new High Bandwidth Memories
expand addressable market

18. 18© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Flash - $2.0B¹ Market Opportunity
• Auto and Industrial customers requesting long-term NOR and NAND flash product
support from ISSI.
• High quality flash a perfect fit to the ISSI specialty model coupled with 0.18u to 55nm
Embedded Flash IP licensing programs with multiple foundries.
• Expands content at targeted customers as a broad-based memory supplier.
• Sampling various densities up to 128Mb serial and parallel flash now, with densities up
to 8Gb in H2’15 for automotive and industrial applications.
• Agreement with Spansion for HyperRam™ and HyperBus™ Flash for future growth
opportunities.
• Targeting auto infotainment, navigation, radio, displays, multimedia, STB and
networking.
.
1. Market information from iSupply

19. 19© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Analog – Automotive Analog Market was $6.8B¹ in 2014
• Total automotive analog market is growing >5% per year to $8.5B in 2018¹
• ISSI product SAM currently $400M and growing with new product families
• Utilize China engineering and backend for lower cost analog products targeting
automotive plus industrial markets.
• Growing revenue outside China with margins >50%. Achieved $1M revenue in 2014.
• Product roadmap leverages existing customers and analog technologies to introduce
new products.
• Introduced auto qualified LED drivers for map lights, tail lights, head lights, and interior
automotive lighting.
• Sampling 20W stereo class D audio amplifiers for consumer with 56W automotive class
D audio amplifiers targeted for H2’15.
• Growing industrial lighting solutions based on ISSI FxLED drivers.
1. Market information from TechNavio Insights

20. 20© 2015 ISSI, INC.
Note: Flash production began with acquisition of Chingis Technology Corporation, which closed in September 2012.
Operating Margin (3.9%) 6.3% 14.5%
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
FY 2009 FY 2014 FY 2019 Target Model*
SRAM Specialty DRAM Analog Flash Commodity Memory
TotalRevenue($inmillions)
~10% of Rev.
(Flash + Analog)
~30% of Rev.
(Flash + Analog)
Flash and Analog Are Expected to Represent
Half of ISSI’s Revenue Growth from FY 2015 to FY 2019
* Please refer to safe harbor on forward looking statements.

21. 21© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Net Price
Year Acquisition Business Paid Revenue Profit Revenue Profit Comment
Fully Integrated Acquisitions
2005
Commodity
DRAM
$75M $120M $36M Loss $189M
Highly
Profitable
Became highly profitable in 2010 after
five year transformation to value add
products
2009 Mobile DRAM $3M $9M $3M Loss $21M Profitable
Became profitable in 2014 after five year
transformation
Expanding Opportunities
2011 Analog $20M $20M
Marginally
Profitable
$7M
Operating
Losses
In transition from a commodity consumer
focused business to one focused on value
add automotive and industrial markets
2012 NOR Flash $15M $35M
Marginally
Profitable
$27M
Operating
Losses
In transition from a commodity consumer
focused business to one focused on value
add automotive and industrial markets
At Acquisition Today
Enable
Semiconductor
Please refer to safe harbor on forward looking statements.

22. 22© 2015 ISSI, INC. - ALL RIGHTS RESERVED
 Established history of growth following four-to-five year period to adapt acquired
products and technology to higher value markets
 DRAM and mobile DRAM enabling growth in automotive and industrial markets
 Ongoing product investment in DRAM and SRAM development: RLDRAM®, QUAD
SRAM, Atris, HyperBus®, HBM, etc. all take 4-5 years to achieve volume revenue
 Flash and Analog create diversified revenue stream and long-term growth
opportunities
– Low cost acquisitions for technology, IP, and engineering talent
– Synergistic with DRAM/SRAM customers, markets and applications
– Increase ISSI’s long-term revenue and profit growth opportunity by 50%
– 0.18u to 55nm embedded flash IP licensing with multiple foundries
– Higher margin profiles increase long-term operating margin goals
– Legacy consumer revenue offsets investment costs during transition

23. 23© 2015 ISSI, INC. - ALL RIGHTS RESERVED
 Continue success in Automotive and Industrial markets with current and
new products
 Ramp newer, higher performance memory products in Communications
market ahead of improving market conditions
– QUAD SRAM, Sync SRAM, DDR2/3, RLDRAM® 2 & 3
 Gain share as legacy competitors exit target markets
 Capitalize on growing market opportunities for NOR flash with existing
memory customers in Automotive and Industrial markets
 Expand analog product offerings to accelerate growth and profitability
through rapid share gains at Automotive and Industrial customers
 Leverage strong balance sheet to grow organically and strategically

24. 24© 2015 ISSI, INC. - ALL RIGHTS RESERVED

25. 0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
FY09 FY10 FY11 FY12 FY13 FY14
Specialty Commodity ASSP Analog Flash
25© 2014 ISSI, INC. - ALL RIGHTS RESERVED

26. 26© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Shift in strategy and product mix drives gross margin
improvement & stability
26.5%
38.2%
33.4% 33.2% 33.0% 34.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
FY09 FY10 FY11 FY12 FY13 FY14
*
* Due to Great Recession in 2008 and 2009, ISSI recorded LCM inventory
reserves in FY09 that reduced FY09 GM and increased the FY10 GM once
inventory was sold.
*

27. 27© 2015 ISSI, INC. - ALL RIGHTS RESERVED
.
5 Years of Strong Cash Flow: $150 Million
$22.6
$13.7
$30.6
$32.4 $33.6
$17.1
$0
$5
$10
$15
$20
$25
$30
$35
$40
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
* Amount excludes impact of $10M advance to foundry
*

28. 28© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Financial Model
GAAP Gross Margin 34-36%
GAAP Operating Margin 7-10%
Cash from Operations 8-12%
Free Cash Flow 6-10%
Please refer to safe harbor on forward looking statements.

29. 29© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Cash & Investments $132M
Working Capital $214M
Total Assets $398M
Long Term Debt $4M
Stockholders’ Equity $311M

30. • Expand ISSI’s product and market reach within the existing vertical markets
• Execute technology and product licenses for new growth opportunities
• Recent Activity: Enable Semiconductor, Si En Technologies, Chingis Technology, Spansion IP
• Business lines are evaluated regularly for fit with strategic goals and value
IP & Technology
Expansion
30© 2015 ISSI, INC. - ALL RIGHTS RESERVED
• Quarterly dividend of $0.06 per share
• Tender offer of $70M for 10M shares completed in 2008
• Additional market repurchases of $10.2M from 2009 to 2011
• Board considers repurchases and other strategic uses of cash each quarter
Dividend and
Share Repurchases
• Operational support and customer confidence
• Foundry advances and Foundry investments (Nanya) to secure DRAM capacity
• Test and assembly capacity to maintain longevity and diversity
• Inventory and EOL purchases to meet availability guarantees
Operational Support
• 2/3 of $132M of cash is offshore
• Offshore cash would be taxed if repatriated in the near-term
• Additional $11M of Nanya investment included at cost in long-term assets; current FMV is $45M –
intend to sell in 2016
Cash and Investments

31. 31© 2015 ISSI, INC. - ALL RIGHTS RESERVED
5 year stock chart – ISSI compared to SOX and Russell 2000
Chart from Yahoo! Finance

32. Long Life Cycle
Product Focus
Specialty Products,
Stable Markets
Favorable Market
Dynamics
High Profit Growth
Model
Strong Cash
Generation
Expansion into
Analog and Flash
32© 2015 ISSI, INC. - ALL RIGHTS RESERVED
Sustainable
Innovation
Diversified Growth
Strong Stockholder
Returns

33. 33
 Scott Howarth, President & CEO
– showarth@issi.com
– 408-969-4686
 John Cobb, Vice President, Finance, and CFO
– jcobb@issi.com
– 408-969-4631
 IR - Shelton Group
– Matt Kreps, Managing Director
– 214-272-0073
– mkreps@sheltongroup.com