SANTA CLARA, California, January 8 /PRNewswire/ --

Marvell Technology Group Ltd. (Nasdaq: MRVL) a leader in storage,
communications, and consumer silicon solutions, today announced that the
Company is completing the planned transition of several mobile products to
its customary fabrication facilities from Intel manufacturing operations.
Upon completion of this transition all of Marvell's communication processors
will be manufactured utilizing the Company's standard fabrication partners.

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Marvell has spent more than a year working on the porting of these
products, going through an extensive qualification process. This time
consuming effort was undertaken with extreme care to maintain a smooth
customer supply chain by creating buffers on both sides with the Intel
fabrication facilities and Marvell's customary channels. The Company feels
confident that customer supply will not be affected.

"This transition has required a great deal of hard work and planning to
ensure a seamless conversion for our customers. We are pleased to complete
this transition well ahead of schedule," said Dr. Sehat Sutardja, Marvell's
President and CEO. "We expect that by converting these parts to our
traditional fabrication partners, Marvell will be able to further lower its
cost structure, improve profitability and support our efforts to bring
Marvell in line with our financial model. This is an important achievement
for Marvell and we remain committed to implementing further cost improvement
initiatives that we began in the third quarter to improve our gross margin."

On November 8, 2006, Marvell completed the acquisition of Intel
Corporation's cellular and applications processor business. Under the terms
of the purchase agreement, Marvell entered into a supply agreement with Intel
whereby Intel would fabricate and supply chips to Marvell through June 2008.
By leveraging strong relationships with manufacturing partners Marvell has
successfully shortened the time needed for the planned transition of XScale
based communications processors and certain application processors. The
transition for the manufacture of communications processors is expected to be
completed before the end of Q1 FY09. Marvell will continue to utilize Intel
fabrication facilities to manufacture certain previous generation application
processors.

About Marvell

Marvell (NASDAQ: MRVL) is a leader in the development of storage,
communications, and consumer silicon solutions. The company's diverse product
portfolio includes switching, transceiver, communications controller,
wireless, and storage solutions that power the entire communications
infrastructure including enterprise, metro, home, and storage networking. As
used in this release, the terms "company" and "Marvell" refer to Marvell
Technology Group Ltd. and its subsidiaries. For more information, visit
http://www.marvell.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995:

This release contains forward-looking statements based on assumptions
about our operations. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," "may," "will," "should," and their
variations identify forward-looking statements. Statements that refer to, or
are based on projections, uncertain events or assumptions also identify
forward-looking statements. These statements include statements regarding
expected benefits to the Company upon completion of the transition of the
manufacture of certain products to traditional fabrication partners, the
Company's anticipated ability to achieve further cost improvement initiatives
and improve its gross margin, the anticipated timing for the completion of
the transition of the manufacture of certain parts to traditional
manufacturers, the Company's plans to continue to utilize Intel fabrication
facilities to manufacture certain products, These statements are not
guarantees of results and are subject to risks and uncertainties that could
cause actual results to differ materially from those anticipated in the
forward-looking statements. Actual results will be subject to the Company's
ability to execute the transition of the manufacture of certain products as
planned and on the Company's operating performance during the remainder of
fiscal year 2008 and beyond. For other factors that could cause Marvell's
results to vary from expectations, please see the risk factors identified in
the Marvell's latest Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, as filed with the Securities and
Exchange Commission and other factors detailed from time to time in Marvell's
filings with the Securities and Exchange Commission. Marvell undertakes no
obligation to revise or update publicly any forward-looking statements.

Marvell(R) is a registered trademark of Marvell or its affiliates. Other
names and brands may be claimed as the property of others.

For Further Information Contact:
    Jeff Palmer
    Marvell Investor Relations
    +1-408-222-8373
    jpalmer@marvell.com

    Diane Vanasse
    Marvell Public Relations
    +1-408-242-0027
    dvanasse@marvell.com



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