National Semiconductor Joins Microsoft Alliance to Drive Growing Information Appliance Market With Total System Solutions

Strategic Alliance Enables Core Technology for Feature-Rich, Easy-to-Use Information Appliances

Santa Clara, CA -- 2/6/2001 -- National Semiconductor Corporation (NYSE:NSM) today announced its participation in Microsoft's Windows Embedded Strategic Silicon Alliance. This strategic alliance with Microsoft will enable a breed of new information appliances that are powered by National's award-winning Geode™ technology and based on "Talisker," the next version of the Microsoft Windows CE operating system. Announced today at the Windows Embedded Developers Conference, the alliance will result in ready-to-build reference designs that enable original equipment manufacturers (OEMs) to quickly bring their Windows Powered devices to market. Microsoft is expected to ship "Talisker" by the end of this year.

"We chose to work closely with National because of its position as one of the key silicon vendors that help enable the fast-growing information appliance market," said Keith White, director of marketing for the Embedded Appliance Platforms Group at Microsoft Corp. "Working with National to optimize its processor for "Talisker" will enable OEMs to quickly bring to market devices that take advantage of the latest processor technology."

National's Geode technology was recently named "the Best Highly Integrated Processor for 2000" by MicroDesign Resources. According to MDR's editors, the Geode processor received the honor because it "incorporates all of the essential functions for a complete information appliance that is easily programmed."

"We are excited about strengthening our relationship with Microsoft and participating in joint development work to ensure 'Talisker' supports our latest technologies. National is in a unique position to leverage our leadership in integrated x86 processing, and our strength in analog, to make breakthrough silicon products and reference designs for our customers," said Michael Polacek, vice president of National Semiconductor's Information Appliance Division. "Our Geode technology is winning in all segments of the information appliance market. We're winning because we have a clear focus, strong commitment, and the best combination of performance, price and power consumption found in the industry."

As a result of this collaboration, "Talisker" will offer OEMs a comprehensive platform for information appliances, allowing them to go quickly to market with Windows CE-based products.

The Geode family of microprocessors consists of integrated single-chip and two-chip solutions as well as reference design and development platforms based on the x86 architecture. National has integrated most of the semiconductor content, including processors and essential analog components, for an information appliance onto a single chip. Customers' overall design and manufacturing costs are lower because National provides validated system solutions with fewer components.

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 10,500 employees worldwide.