Volume Production Set To Begin On New Acer Information Appliances Based On National Semiconductor Geode™ Processor

Acer to showcase wide range of information appliances at Computex featuring National's Geode solutions

Santa Clara, CA -- 6/5/2000 -- National Semiconductor Corporation (NYSE:NSM) and Acer announced today that a new array of information appliances, based on National's Geode™ solutions, are ready for volume production. National and Acer announced plans last year at Computex to co-develop a set-top box platform based on National's Geode solution.

The new array of Acer information appliances includes i-Station, Personal Wireless Internet Access Device and WBT (Windows Based Terminal).

A device specialized for Internet access, the i-Station has a 10" LCD display, instant on/off feature, hot key access and hot mail indicator. This technology offers the consumer all the benefits of the Internet, while providing the user interface of a consumer appliance.

The Personal Wireless Internet Access Device is built with either a DECT or a 802.11b wireless LAN RF module to enable wireless Internet access via a base station. The WBT allows access to an enterprise network and the Internet through a LAN and runs all Windows applications commonly used in an office.

"We're extremely pleased that Acer is able to quickly deliver a series of information appliances based on our Geode solutions. With Acer's strong marketing network and engineering talent we believe that these information appliances will come to market very soon and make an impact on to the Internet access revolution," said Roland Andersson, Senior Vice President of Worldwide Sales & Marketing, National Semiconductor.

"We have worked on National's Geode solution since last year and have been impressed by the performance and the cost-effectiveness of the solution," said Simon Lin, President & CEO of Acer Inc. "Their different reference platforms, including the WebPAD, Set-Top Box and thin client (which we developed into our WBT series), together with the excellent application support, enable us to deliver this series of new products within a short time frame."

While Acer will market some of the products under the Acer brand name, some of the products will be supplied to other major consumer companies. These products are now being shown at Computex.

About Acer
Established in 1976, Acer is the world's third-largest PC manufacturer, offering a broad selection of industry-leading high-end servers, multimedia PCs, notebooks, computer peripherals, components and semiconductors. The Acer Group employs more than 34,000 people in 120 enterprises spanning 42 countries worldwide, and supporting dealers and distributors in more than 100 countries. The Acer Group's revenue in 1999 was US$8.4 billion. For more information about The Acer Group, please visit their website at www.acer.com.

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.