National Semiconductor And Microsoft Align To Provide Hardware Solutions For MSN-Based Web Companions

National's Geode™ WebPAD™ Reference Platform Will Enable New Internet Appliances

Santa Clara, CA -- 2/24/2000 -- National Semiconductor Corporation (NYSE:NSM) today announced it is joining with Microsoft Corp. to provide the hardware platform and enabling technology for the new MSN-based Web companions. Web companions are designed to offer consumers a simple and fun way to browse the Internet, communicate with others and shop online.

National is also working closely with many of the industry-leading OEMs that are designing MSN-based Web companions, including Acer Inc., Thomson Multimedia and Vestel USA. National is supplying the manufacturers with its Geode™ WebPAD™ hardware platform, as well as supporting design and engineering services. National's Geode WebPAD platform will be one of the hardware platforms for the MSN-based Web companions. Microsoft is providing the manufacturers with a complete software solution consisting of MSN Internet Access, leading MSN services and the Microsoft Windows CE operating system.

"MSN-based Web companions are exactly the type of end-user devices we envisioned when we set out to design our Geode WebPAD platform," said Mike Polacek, vice president of National Semiconductor's Information Appliance division. "Combining these simple devices with the myriad of services offered by MSN will really appeal to the large number of consumers that have traditionally been afraid to get on the Internet. These devices have the potential to convert the PC-phobic into dedicated Internet users."

MSN-based Web companions support Microsoft's vision of the Everyday Web, which involves transforming the Web into a highly personalized, interactive place to get things done. MSN-based Web companions offer instant-on convenience, enabling users to effortlessly log on to the Internet via MSN Internet Access service and connect to the vast array of MSN services, including MSN Hotmail and MSN Messenger as well as to the Web at large.

"National Semiconductor's WebPAD platform and its commitment to the Internet device market are a good complement to Microsoft's vision of the Everyday Web," said Deanna Sanford, lead product manager, MSN. "Working together, MSN and National's Geode solutions will help bring the power of the Internet to a whole new group of consumers."

The Geode WebPAD design is based on National's highly integrated Geode GXLV processor, a low-power x86-based chip that integrates sound, graphics, memory control and the PCI interface. Geode WebPAD solutions based on the x86 architecture provide consumers with a no-compromise Internet experience, because most popular software plug-in modules for the Internet are supported.

"As a global leader in consumer electronics, Vestel brings only the most innovative, high quality technology to our customer base," said Selcuk N. Caglar, president and CEO, Vestel USA. "We are pleased to be working with National Semiconductor and Microsoft to develop the Vestel Internet.Terminal, an MSN-based Web companion. National's Geode technology provides the high-performance solution that will enable Vestel to quickly deliver leading information appliances to the market."

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 currently has about 10,500 employees worldwide.