MICROTUNE ANNOUNCES THIRD QUARTER 2008 FINANCIAL RESULTS

Achieves Record Quarterly Revenue

Q3 Net Revenue of $ 31.9 Million; EPS of $0.06 GAAP and $0.08 Non-GAAP

PLANO, Texas– Microtune ® , Inc. (NASDAQ: TUNE) today reported preliminary unaudited financial results for the third quarter and nine months ended September 30, 2008.

Net revenue for the quarter ended September 30, 2008 was $31.9 million, a 34% increase compared to net revenue of $23.8 million for the third quarter of 2007, and a 20% increase compared to net revenue of $26.6 million for the second quarter of 2008. Net revenue for the nine months ended September 30, 2008 was $84.0 million, a 23% increase compared to net revenue of $68.4 million for the nine months ended September 30, 2007. Third quarter 2008 revenue of $31.9 million included $5.8 million from the short-term digital TV coupon-eligible converter box (CECB) opportunity.

On a generally accepted accounting principles (GAAP) basis, net income per diluted share was $0.06 and $0.10 for the third quarter and first three quarters of 2008, respectively. Non-GAAP net income per diluted share was $0.08 and $0.16 for the third quarter and first three quarters of 2008, respectively. A reconciliation of this and other non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the tables attached to this press release.

“Microtune achieved the highest recorded quarterly revenue in the Company’s history, built on our core cable and automotive markets and significant penetration in the Digital TV converter box market. While the converter box opportunity is short-term, our success reflects our ability to ramp our operations quickly to respond to Digital TV market opportunities and is an important stepping stone to the broader Digital TV market,” said James A. Fontaine, Microtune President and CEO. “We believe that our competitive products, based on our leading technology and brand, combined with our healthy balance sheet and strong cash position, enable us to navigate through a challenging macroeconomic environment.”

ADDITIONAL FINANCIAL HIGHLIGHTS
Q308 gross margin percentage of 48.4%, which included some negative impact from lower CECB gross margins;
Q308 net margins of 10% GAAP and 14% non-GAAP;
Reduced common stock outstanding through repurchases of 676,000 shares ($2.4 million cost) during the third quarter of 2008 for a total of 1,604,000 shares ($6.1 million cost) since the inception of the program in April 2008;
Cash and cash equivalents of $82.2 million at September 30, 2008.

Through September 30, 2008, Microtune has shipped a cumulative total of 112.8 million silicon TV tuner chips.

FINANCIAL OUTLOOK/GUIDANCE
Fourth quarter 2008 net revenue is expected to be in the range of $24.5 to $26.5 million, including approximately $2.0 million related to the CECB opportunity;
Gross margin percentage is expected to be in the range of 49% to 50% for the fourth quarter of 2008;
Full year 2008 non-GAAP R&D expenses are expected to be $24.6 to $25.1 million, representing a full year growth rate of 16% to 18% (R&D expenses can vary significantly quarter-to-quarter due to the timing of wafer fabrication tape-outs);
Full year 2008 non-GAAP SG&A expenses are expected to be $18.9 to $19.3 million, representing a full year growth rate of 2% to 4%;
Interest income is expected to be in the range of $350,000 to $380,000 for the fourth quarter of 2008, excluding the impact of any possible additional share repurchases;
Income tax expense is expected to be in the range of $110,000 to $160,000 for the fourth quarter of 2008, driven primarily by withholding taxes, alternative minimum taxes and foreign taxes.

CONFERENCE CALL

As previously announced, Microtune will hold an investors’ conference call today, Thursday, October 23, 2008, at 4:00 P.M. Central Time/5:00 P.M. Eastern Time to discuss the Company’s third quarter 2008 financial results and its outlook for the future.

To participate in the call, interested parties may dial 612-234-9960 (Pass Code: “Earnings”). Alternatively, interested parties may also listen to the conference call on the Internet by accessing the Company’s website: www.microtune.com. A replay of the conference call will be available until November 6, 2008 via the Company’s website or by dialing 320-365-3844 (Access code: 963549).

NOTIFICATIONS

Included in this press release are Microtune’s unaudited Consolidated Balance Sheets as of September 30, 2008 and December 31, 2007, respectively; its unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2008 and 2007, respectively; its unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2008 and 2007, respectively; and certain unaudited Additional Financial Information. This financial information should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, the Company’s Quarterly Reports on Form 10-Q for the first and second quarter of 2008, and the Company’s Quarterly Report on Form 10-Q for the third quarter of 2008, expected to be filed on or about October 23, 2008.

Also included in this release are certain non-GAAP financial measures, including non-GAAP net income; non-GAAP net income per diluted share; shares used in non-GAAP net income per diluted share calculations; non-GAAP research and development (R&D) expenses; and non-GAAP selling, general and administrative expenses (SG&A). These non-GAAP financial measures do not represent alternative financial measures under GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Furthermore, these non-GAAP financial measures do not reflect a comprehensive view of Microtune’s operations in accordance with GAAP and should only be read in conjunction with the corresponding GAAP financial measures. This information constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission. Accordingly, Microtune has presented herein, and will present in other information it publishes that contains these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Microtune believes the presentation of non-GAAP net income; non-GAAP net income per diluted share; shares used in non-GAAP net income per diluted share calculations; non-GAAP R&D expenses; and non-GAAP SG&A expenses included in this release in conjunction with the corresponding GAAP financial measures provide meaningful information for investors, analysts and management in assessing Microtune’s business trends and financial performance. From a financial planning and analysis perspective, Microtune management analyzes its results of operations with and without the impact of SFAS No. 123R stock-based compensation expenses and fees and expenses due to the legal proceedings related to the Company’s past stock option granting practices.

ABOUT MICROTUNE

Microtune, Inc. is a silicon and subsystems company that designs and markets radio frequency (RF) solutions for the worldwide consumer electronics and automotive electronics markets. Inventor of the MicroTuner™ single-chip broadband tuner, Microtune offers a portfolio of advanced tuner, amplifier, and upconverter products that enable the delivery of information and entertainment across new classes of appliances and applications. The Company currently holds 80 U.S. patents for its technology. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design and sales centers located around the world. The website is www.microtune.com.

MICROTUNE FORWARD-LOOKING STATEMENTS

All statements in this press release other than statements of historical fact are forward-looking statements that are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are generally, but not necessarily, accompanied by words such as “plan,” “if,” “estimate,” “expect,” “believe,” “could,” “would,” “anticipate,” “may,” or other words that convey uncertainty of future events or outcomes. These forward-looking statements and other statements made elsewhere in this release are made in reliance, in part, on the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to differ from anticipated results include, the Company’s ability to introduce new products, achieve design wins, maintain customer and strategic partner relationships, forecast customer demand and manage inventory levels, control and budget expenses, protect proprietary technology and intellectual property, and successfully prosecute and defend any pending or future litigation. Any one of these factors may cause the Company’s actual financial results to differ materially from its projected financial results. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. Readers are referred to our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings which discuss the foregoing factors as well as other important risk factors that could affect our business, results of operations and financial condition.