FAS123R - Share-Based Payment became effective and was adopted by the Company during the quarter ended October 2, 2005. FAS123R requires the Company to estimate the cost of all forms of stock-based compensation, including employee stock options, and to record a commensurate expense in the income statement. To supplement our consolidated financial statements presented in accordance with GAAP, we have shown above a non-GAAP (pro forma) presentation of the Company's earnings per share, which is adjusted to reflect the GAAP results to exclude all stock-based compensation. This non-GAAP presentation of earnings per share is provided to enhance the user's overall understanding of the Company's historical financial performance and comparability between periods. We believe the non-GAAP results provide useful information to investors by excluding stock-based compensation particularly during this transitional period when many companies are initially adopting the provisions of FAS123R.

                        LINEAR TECHNOLOGY CORPORATION
                    CONSOLIDATED CONDENSED BALANCE SHEETS
                            (Dollars in thousands)


                                                   April 2,         July 3,
                                                     2006             2005
                                                  (unaudited)       (audited)
    ASSETS

    Current assets:
     Cash, cash equivalents and
      short-term investments                      $1,915,721     $1,790,912

      Accounts receivable, net of
       allowance for doubtful
       accounts of $1,808 ($1,713
       at July 3, 2005)                              148,597        125,864

      Inventories                                     37,986         34,328

      Deferred tax assets and other current
       assets                                         73,040         56,205

      Total current assets                         2,175,344      2,007,309

    Property, plant & equipment, net                 242,722        221,028
    Other noncurrent assets                           48,663         57,897

    Total assets                                  $2,466,729     $2,286,234

                                                    April 2,       July 3,
                                                      2006           2005
                                                  (unaudited)     (audited)

    LIABILITIES & STOCKHOLDERS ' EQUITY

    Current liabilities:
     Accounts payable                                $13,762        $11,800

     Accrued income taxes, payroll
      & other accrued liabilities                    151,771        152,231

     Deferred income on shipments
      to distributors                                 47,764         43,708

       Total current liabilities                     213,297        207,739

    Deferred tax and other long-term liabilities      68,066         71,461
    Stockholders' equity:

     Common stock                                  1,030,970        926,763
     Retained earnings                             1,159,514      1,083,110
     Accumulated other comprehensive
      income                                         (5,118)        (2,839)
      Total stockholders' equity                   2,185,366      2,007,034
                                                  $2,466,729     $2,286,234

CONTACT: Paul Coghlan, Vice President, Finance, +1-408-432-1900

Web site: http://www.linear.com/