NATIONAL SEMICONDUCTOR ANNOUNCES $300 MILLION EXPANSION IN ARLINGTON, TEXAS

Santa Clara, Calif., August 10, 1995 -- National Semiconductor Corporation announced today that it is investing $300 million to expand its Arlington, Texas manufacturing facility. The expansion is an important step in the company's aggressive plan for growth.

National Semiconductor's $300 million investment, the largest in Arlington's history, will create 400 new jobs. In total, National plans to invest $600 million for capital expenditures before June 1996 at selected manufacturing sites worldwide.

With this announcement, National is expanding into "Fab IIA," the third manufacturing module at its site in Arlington. This expansion will increase the site's 6-inch submicron fab area by over 50 percent and adds 27,000 square feet of Class I clean room space to the facility.

National, which currently employs 1150 in Arlington, began manufacturing there in 1985 in Fab 1 and expanded into Fab 2 in 1992. Arlington is National's CMOS Center of Excellence.

"We are appreciative of the extensive cooperation we have had with the city and county as well as the AISD Board and Chamber of Commerce," said Don Kirby, managing director of National's Arlington facility. "All of these individuals and organizations were instrumental in bringing this expansion to Arlington."

National selected Arlington for the expansion because of the area's large base of potential employees, positive business climate, strong public-private partnerships, excellent schools and affordable housing.

The company is adding manufacturing capacity to keep up with strong demand for its products. Applications for the integrated circuits produced in Arlington include personal computers and telephones as well as computer networking and telecommunications equipment. National's iPowerPersonaCard(tm), a device which provides data security over networks, is designed and manufactured in Arlington. Additionally, National's isochronous Ethernet(tm), a product enabling videoconferencing at the desktop, is manufactured there.

In addition to manufacturing, National's Arlington site features the company's Customer Support Center, a comprehensive telecommunications center for its customers in North America. An integrated circuit design center is also located at the site.

National Semiconductor Corporation provides technologies for moving and shaping information. The company is headquartered in Santa Clara, Calif., and has 22,300 employees worldwide. Manufacturing sites are located in Arlington, Texas; Greenock, Scotland; Salt Lake City, Utah; Santa Clara, Calif. and South Portland, Maine. Test and Assembly sites are in Cebu, The Philippines; Malacca and Penang, Malaysia and Singapore. In fiscal 1995, the company posted the $2.4 billion mark in sales and achieved the highest earnings in its history.

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