Southwest Ideas Investor Conference Presentation

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Southwest Ideas Investor Conference Southwest Ideas Investor Conference November 11, 2010 November 11, 2010 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements that involve risks and uncertainties. Statements of the Company’s plans, objectives, expectations and intentions and statements containing terms such as “believe”, “expects”, “plans”, “anticipates”, “may” or similar terms are considered to contain uncertainty and are forward-looking statements. Similarly, statements that describe the Company’s business strategy, outlook, objectives, plans or goals also are forward-looking statements and are based on information available to management at the time of such statement. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions, the ability to compete in the highly competitive markets, rapid changes in technologies that may displace products and services sold by the combined company, declining prices of networking products, the combined company's reliance on distributors, delays in product development efforts, uncertainty in consumer acceptance of the combined company's products, changes in the company’s level of revenue or profitability, expectations and stability of the international business environment in which the company operates, availability and cost of raw materials and labor, loss of major customers or significant change in demand from company forecasts, projections of future performance, future financial and operating results, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended August 31, 2009. The company does not assume any obligation to update any information contained in this release. This disclosure speaks as of the date of its most recent posting November 2010 , and the Company cannot assure its accuracy after that date and does not undertake to update the disclosures contained herein.

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Transcript of Southwest Ideas Investor Conference Presentation

Confidential & Proprietary RF Monolithics, Inc.

Southwest Ideas Investor ConferenceSouthwest Ideas Investor Conference

November 11, 2010November 11, 2010

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995This presentation contains forward-looking statements that involve risks and uncertainties. Statements of the Company’s plans, objectives, expectations and intentions and statements containing terms such as “believe”, “expects”, “plans”, “anticipates”, “may” or similar terms are considered to contain uncertainty and are forward-looking statements. Similarly, statements that describe the Company’s business strategy, outlook, objectives, plans or goals also are forward-looking statements and are based on information available to management at the time of such statement. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions, the ability to compete in the highly competitive markets, rapid changes in technologies that may displace products and services sold by the combined company, declining prices of networking products, the combined company's reliance on distributors, delays in product development efforts, uncertainty in consumer acceptance of the combined company's products, changes in the company’s level of revenue or profitability, expectations and stability of the international business environment in which the company operates, availability and cost of raw materials and labor, loss of major customers or significant change in demand from company forecasts, projections of future performance, future financial and operating results, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended August 31, 2009. The company does not assume any obligation to update any information contained in this release. This disclosure speaks as of the date of its most recent posting November 2010, and the Company cannot assure its accuracy after that date and does not undertake to update the disclosures contained herein.

RF Monolithics, Inc. 2

Wireless is…RFM®

Successful Brand name for over 30 years

Focused on M2M Market Opportunities

Top 100 M2M Company List 4th year in a row

Broad Product Offerings for Target Markets

Long-standing relationships with network of worldwide market channels and customers

Weathering 2009/2010 economic downturn and re-established Financial Stability / Profitability

Low Cost Business / Manufacturing Model – Increased Sales without substantially increasing fixed cost

New Strategic Equity and Collaboration

Strong Banking Relationship

Seasoned Leadership meets Challenges

RF Monolithics, Inc. 3

Market Cap~ $13M

$33.6M Revenue

$312KNet Income

$2.2MEBITDA

110%+ Stock Price Increase from 52 week Low

(Nasdaq: RFMI)

Revenue $33.6 Million and Growing

Strong EBITDA Over $2 Million

Operating Cash Flow Over $1 Million

New Strategic Equity Raise at a Premium

52 week range:

~$0.62 - $1.50 Stock Price

~$6.2 - $15.0 Million Market Cap

Value Indicators

RF Monolithics, Inc. 4

Strategic Focus

“M2M”

Wireless Sensor Networks(WSN)

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Machine-to-Machine (M2M)According to Harbor Research:

• The number of intelligent device shipments will grow from 73 million units in 2008 and to 430 million units in 2013. Total device revenue is expected to exceed $12 billion by 2013. Much of the growth will be due to Wireless PAN technology, including ZigBee and other 802.15.4 related technology, particularly those used in Wireless Sensor Networks (WSNs).

"We're currently on the cusp of a transformation in the marketplace… Over the next five years, we're going to see that the true value held in connected devices will shift towards value-added services where there's unheralded potential for revenue generation.“

Glen Allmendinger, President of Harbor Research

Harbor Research Inc. is the leading provider of research services to manufacturers, services organizations and core technology clients in intelligent device communications and the connected services market place.

RF Monolithics, Inc. 6

RF Monolithics, Inc. 7

Target Markets / ApplicationsMedical• Implanted Devices• Body Sensor Networks• Medical Telemetry• Patient Monitoring and Tracking• Medical Equipment Tracking• Wireless Sensor Networks

Industrial • Automated Meter Reading (AMR)• Smart Grid• Wireless Mesh Networks and Automation• Condition Monitoring and Active RFID• Oil & Gas Pipeline Monitoring• Surveying

SAW-based VirtualWire Radios

RFIC Short-rangeRadios

ZigBee and 802.15.4

Bluetooth

Proprietary MeshRFM and Wireless HART Networks

Proprietary Frequency HoppingSpread Spectrum

802.11b/gBattery PoweredWi-Fi

RF Monolithics, Inc. 8

M2M Market Focus: Product Mix

Short-RangeRadios

StandaloneDevices

RF Components

OR

Ready-MadeRF Modules

Unlicensed Radio Band Certification

RF Engineering Capabilities and / or Wireless Networking Expertise

Facilities / Equipment for RF Design, Engineering & Testing

RF Manufacturing Capabilities

Time-to-Market

MustCertify

Product Certified

MustPossess

NotNeeded

MustPossess

NotNeeded

MustPossess

NotNeeded

Slower Quickest

MAKE BUY

RF Modules andBoxed Radio Products

RF Components andSubsystem RF Products

Global Connectivity

Simple Connectivity

Go-To-Market Strategy

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Murata

RF Monolithics, Inc. 10

Murata RelationshipInvestment by Murata Electronics North America.

Cash Stock Purchase of approximately 535,000 shares, 4.99% of diluted shares, at a Premium to Market.

Joint Collaboration Agreement with Murata Manufacturing Co. Ltd. of Japan (6981.OSE/TSE) and all Murata subsidiaries (including SyChip locally). Covering Modules and Components.

Initially Identified Areas to Collaborate with emphasis on the wireless solutions portion of both companies’ product portfolios for specific markets and joint development of wireless solution products.

Murata is a $5.7B Global Electronics Company

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Financial

Highlights

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$11.4

$6.6 $6.5

$7.5

$8.5

$7.9

$8.7 $8.6

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Quarterly Revenue

FY 2009 FY 2010

Mill

ion

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$0.640

($0.840)

$0.084

$0.640$0.550

$0.640 $0.640

$0.410

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Quarterly EBITDA

FY 2009 FY 2010

Mill

ion

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$4.024

$1.011

$3.556

$0.910

$4.214

$0.742

$2.575

$0.602

$2.550

$0.621

$2.545

$0.589

$2.614

$0.589

$2.736

$0.490

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QFY 2009 FY 2010

Operating Expenses / G & A ExpensesQuarterly

$1.6

34 R

estru

ctur

ing

and

Impa

irmen

t

Mill

ion

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FY’10 SummaryVery Good Recovery Year.

Revenue: $33.6M (over 5% increase).

Gross Profit Margins: 33.5%.Operating Expenses: $10.4M (~$4M improvement):

$2M less due to impact of cost reduction efforts, per Plan.$2M less due to lack of restructuring and impairment costs of FY’09.

Operating Income: $0.9M (~$3.7M improvement). $1.8M improvement without Restructuring & Impairment.

Five consecutive quarters of positive Operating Income.

Net Income: $0.3M (~ $3.8M improvement).

EBITDA: $2.2M.

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FY’10 SummaryNet Income adjusted for non-cash items: $1.7M.

Working Capital: $5.2M.

Operating Cash Flow: $1.2M.

Capital Spending: $0.2M.

Total Bank Debt: $2.9M (reduced by $1.6M).

Total Equity: $7.2M.

Balance Sheet Items:

Cash $0.6MReceivables $5.3MInventory $5.0MTotal Assets $14.2M

Payables $2.5MRevolver $2.1MMortgage $0.8MTotal Liabilities $7.0M

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$7.9

$5.8

$4.6

$0.895

$3.6

$0.880

$3.9

$0.865

$3.4

$0.850

$3.6

$0.835

$2.1

$0.820

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QFY 2009 FY 2010

Bank Revolver/MortgageM

illio

n

RF Monolithics, Inc. 18

ViewPoint BankOne-Year Committed Revolving Line of $5.0M. Originally funded December 1, 2009 at $4.2M.

Reduced $2.1M in 9 months.Monthly Borrowing Base:

80% on Insured A/R.50% of FG Inventory up to $1.0M.

Interest Rate: Prime + 2% (Floor of 7%).

Financial Covenants:Current Ratio 1.0 to 1.0 (Measured Quarterly).Minimum Equity $4.8M (Measured Quarterly).

Expiring November 30, 2010.Received Commitment for Two-Year Renewal (on similar terms).

Banking Relationship

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Experienced Management

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Experienced Management

David Kirk – President & CEO

Buddy Barnes – Chief Financial Officer

Farlin Halsey – SVP M2M Business / Marketing

David Crawford – VP Sales

Focused on increasing Stockholder Value

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Summaryl RFM - Successful Brand name for over 30 years with a Low

Cost Business / Manufacturing Model.

l Focused on WSN Opportunities within M2M Market with a Broad Product Offering.

l New Strategic Equity with Murata and Collaboration Agreement.

l Weathering 2009/2010 economic downturn. Grew Revenue, Generated Operating and Profitable.

l Favorable Bank Relationship and Experienced Management Team.

l We believe RFM is a Good Investment with Stockholder Growth Potential.

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Thank you for your interest in RFMThank you for your interest in RFM