NATIONAL SEMICONDUCTOR ACQUIRES FUTURE INTEGRATED SYSTEMS (FIS)

November 11, 1997 -- National Semiconductor Corporation® today announced it has acquired all of the outstanding shares of stock of Future Integrated Systems (FIS) based in Milpitas, California. Founded in 1994, FIS is a supplier of graphics hardware and software solutions for the personal computer market. FIS design expertise will expand National's ability to integrate advanced graphics capabilities into system-on-a-chip solutions for the personal computing marketplace. FIS operations will be merged into National's PC Systems Division within the Personal Systems Group.

Terms of the transaction were not discussed but National said it expects to take a one-time charge for the write-off of in-process R&D projects at FIS amounting to approximately $2.5 million in National's fiscal 1998 second quarter, which ends November 24, 1997.

National Semiconductor Corporation, a Fortune 500 company, produces system on a chip silicon solutions for the information highway, based on its leadership in analog and mixed signal technologies. National is headquartered in Santa Clara, California, and focuses on the communications, personal systems and consumer markets. National has annual sales of approximately $2.5 billion and 12,700 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com