National Semiconductor Forms Strategic Alliance With Arima To Develop Information Appliances

Partnership with world's leading design manufacturer endorses performance and cost effectiveness of National's Geode solutions

Santa Clara, CA -- 6/5/2000 -- National Semiconductor Corporation (NYSE:NSM) today announced the signing of a Memorandum of Understanding (MOU) with Arima Computer Corporation, forming a strategic alliance to develop information appliances (IA), including three major platforms: WebPAD™, set top box and thin client.

Under the agreement, National will supply all development tools, reference kits and applications support to Arima for these information appliance platforms. Arima will develop products for its consumers based on National's Geode™ processors.

"We're excited that Arima is joining our list of partners, developing information appliances based on our Geode processors. Arima is a well-known Original Design Manufacturer (ODM) for computing products. Their products are known for quality and cost efficiency. This strategic alliance demonstrates that one of the world's leading ODMs is endorsing the performance and cost effectiveness of our IA solutions," said Roland Andersson, Senior Vice President of Worldwide Sales & Marketing, National Semiconductor.

"The reason we chose to work with National's information appliances is that National's the first one to have a sophisticated list of platforms and solutions for this emerging market. This will ensure our advantage in time-to-market. Their Geode processors, which are x86 based, and their analog expertise, will ensure compatibility with the multitude of web-based applets and desirable user experience," said L.C. Tsai, Chief Technical Officer, Arima.

Arima's products will be supplied to brand name marketing companies. The final products are expected to be launched this year.

About Arima
Airma Computer Corporation is a professional ODM in computing products including Notebook PC, LCD PC, Server/Work Station, DSC, GSM/CDMA Handset, WAP/Smart Phone and Internet Appliance, etc.

Founded in 1989 and based in Taipei, Taiwan, Arima is a fast growing company with US$1.3 billion in revenue in 1999. With two factories in Ta-Shi and Yingko, Tao Yuan County, Arima has approximately 2,700 employees and does business with powerful core technologies and integration capability to provide the best solutions to brand name marketing companies.

About National Semiconductor
National Semiconductor provides system-on-a-chip solutions for the information age. Combining real-world analog and state-of the-art digital technology, the company's chips lead many sectors of the personal computer, communications, and consumer markets. With headquarters in Santa Clara, California, National reported sales of $2 billion for its last fiscal year and has about 10,500 employees worldwide.