National Semiconductor Unveils Industry's First Technology Targeting the Information Appliance Market

Combination of Unprecedented Performance, Longer Battery Life and Rich Multimedia Experience Becomes A Reality in Future Devices

Santa Clara, CA -- 6/13/2001 -- Further extending its information appliance (IA) technology leadership, National Semiconductor Corporation (NYSE: NSM) today introduced the industry's first technology exclusively tailored for a new breed of information appliances. Enabling high performance and low power, this new IA solution will drive the entire range of future corporate and consumer applications from thin clients, personal Internet access devices and set-top boxes to residential gateways.

National's new technological breakthrough, known as the GeodeLink™ system architecture, is the newest development of National's popular Geode™ processors currently powering more than 120 information appliance designs from Acer, AOL/Philips, Compaq, Dell, Honeywell, IBM, Microsoft and Samsung. Breaking away from traditional design methods, the new technology enables features that allow system integration to achieve the best mix of performance, power and price.

"Our continued innovations in system-on-a-chip integration for the IA market keep National at the forefront driving the Information Age," said Michael Polacek, vice president of information appliance division at National Semiconductor. "The introduction of this new enabling technology proves that we are moving a step further to provide the most optimal IA solution. With our GeodeLink technology, people will be able to enjoy enhanced multimedia experience via wired or wireless connections."

For end users, future devices based on National's new technology will be more powerful in processing speeds for easy and instant access to the Internet without the complexity of PCs. Additionally, these devices will have longer battery life, be quieter due to elimination of heat fans, and deliver more enriched multimedia experiences at an affordable price. For original equipment manufacturers (OEMs), this will translate to much simplified design and faster time-to-market.

National's GeodeLink architecture will be the foundation of the company's next-generation integrated processors. These processors will allow instant-on Internet access, plug-ins, high-quality audio, video and graphics, and streaming media over wireless and broadband infrastructures. National expects to make available initial processors based on the new technology in the third quarter of 2001.

Despite the current market conditions, National Semiconductor projects that 10 million thin clients, 15 million WebPAD™/Internet terminals, and 50 million digital set-top boxes/interactive TV sets will ship by 2004.

National Semiconductor is focusing on the three primary IA markets. The leader in thin-client technology with 85 percent of the market share, National provides the award-winning Geode processor in Compaq's newest Evo thin-client systems to simplify corporate IT management. In the set-top box arena, the Geode processor powers the first cable boxes based on the Microsoft TV platform, delivering interactive entertainment and information to the consumer through the TV Cabo cable system. National is also working with numerous customers, such as Honeywell, on WebPAD appliances for improvements in functionality, mobility and affordability.

About National Semiconductor
National Semiconductor is the premier analog company driving the information age. Combining real-world analog and state-of-the-art digital technology, the company is focused on the fast growing markets for wireless handsets; information appliances; information infrastructure; and display, imaging and human interface technologies. With headquarters in Santa Clara, California, National reported sales of $2.1 billion for its last fiscal year and has about 10,000 employees worldwide.