MEDIAMATICS DVD TECHNOLOGY INCORPORATED INTO NEW IBM APTIVA PCs

Mediamatics' DVDExpress Is the Only Software DVD Solution to Provide Microsoft DirectShow Compliance

September 2, 1998-- National Semiconductor® Corporation (NYSE:NSM) announced today that IBM has incorporated Mediamatics® DVDExpress® software in their new DVD PCs, the Aptiva E86 and E5N. Mediamatics is a subsidiary of National Semiconductor.

Mediamatics' DVDExpress technology leads the industry in providing a low-cost, high-performance software DVD playback solution that is compatible with the Microsoft DirectShow Application Programming Interface (API). The Mediamatics' integrated MPEG-2 video and Dolby?Digital AC-3 audio software decoder is the first commercial software DVD implementation to use the DirectShow API while delivering no-compromise consumer quality audio and video playback to IBM's new line of DVD-enabled PCs.

With DirectShow compatibility, Mediamatics' DVDExpress solution enables PCs to play the advanced features of today's DVD content and ensures compatibility with future DVD applications, turning mainstream PCs into full-featured entertainment PCs. Until now, the lack of industry standards has created compatibility issues for system designers wishing to implement cost-effective DVD on PCs.

"I am pleased to see the close efforts between Mediamatics and Microsoft bring a fully DirectShow compliant DVD playback solution to the market," said Eric Engstrom, general manager of DirectX multimedia at Microsoft Corporation. "This new technology ensures end-users can enjoy all of the features of DVD today and next generation DVD applications of the future."

"The combination of DVDExpress and proven superior support services from Mediamatics ensures that leading OEMs can bring the latest in DVD technology to market quickly," said Pier Del Frate, vice president of marketing at Mediamatics.

National Semiconductor Corporation
National Semiconductor Corporation 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, Calif., and focuses on the communications, personal systems and consumer markets. National has annual sales of approximately $2.5 billion and 13,000 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.

Mediamatics
Mediamatics, a wholly owned subsidiary of National Semiconductor Corporation, delivers consumer quality digital video and audio hardware/software solutions for consumer, PC and convergence markets. Mediamatics software and system expertise are the starting points for further integration into the emerging home entertainment market comprised of entertainment PCs, set-top boxes and DVD players. Its products are licensed by Microsoft and major PC OEMs, making Mediamatics the world's largest supplier of MPEG products. To receive additional corporate and product information, visit the Mediamatics Web site at http://www.mediamatics.com.

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