National Semiconductor® partners with CCL/ITRI?s & ITE to provide complete WindowS® CE - - Based solutions for information appliances

Taipei - September 8, 1999 - National Semiconductor® Corp. (NYSE:NSM) today sealed a technology partnership agreement with Computer & Communications Research Labs of Industrial Technology Research Institute (CCL/ITRI) and Integrated Technology Express Inc (ITE) in Taiwan. With this agreement, National Semiconductor will provide leading chip technology and technical assistance for the members of CCL and ITE Windows® CE Center of Excellence to develop Windows® CE products across the Asia Pacific region. CCL/ITRI and ITE will provide the software drivers and programs for National Semiconductor?s information appliances to run on Windows® CE. This agreement is expected to push the development of information appliances and satisfy consumers? practical needs.

To expedite Windows® CE production, CCL/ITRI, ITE and National Semiconductor are joining forces to help Windows® CE product manufacturers realize their product strategy. Following the formation of this partnership, Windows® CE product manufacturers in the region will benefit from National Semiconductor?s technical support in research and development. National Semiconductor adds value to CCL/ITRI?s and ITE?s initiatives by bringing in National?s cutting edge integrated chip technology to a wide spectrum of Windows® CE manufacturers and their products, including Windows-based terminals, set-top boxes, personal information access devices, auto PCs and other information appliances.

?CCL/ITRI?s objective is to expedite the technology dissemination to Taiwan?s manufacturers so that they can take advantage of the market opportunities around the world. In this particular instance, CCL/ITRI?s strategy is to collaborate with technology leaders in information industry, especially in internet and communications technologies,? said Dr. Ted C Yang, Vice President & General Director of CCL/ITRI. ?Based on National?s Geode series of integrated IA processors, CCL/ITRI can provide complete system solutions for Windows® CE products such as Internet set-top boxes and Windows-based terminals.?

?ITE is the first Windows® CE system integrator (SI) and the Windows® CE Distributor authorized by Microsoft in Asia Pacific region, and focus on Information Appliance & Consumer Computing Applications for Windows® CE-based operating platforms. ITE?s strategy is to provide turn-key solutions and to offer a one-stop shopping service to its customers,? said Steven Huang, Vice President of ITE. ?National Semiconductor?s Geode processor is one of the most popular solutions in Windows CE applications market. Together with ITE?s experienced System Integration service and Windows CE sublicensing service, the cooperation with National Semiconductor and CCL/ITRI will accelerate the popularization of Windows CE-based information appliances. ?

?National?s highly integrated chip technology and platform solutions are able to help Asia?s Windows® CE manufacturers step up their development and production of Windows® CE-based products,? said Michael Polacek, vice president of National Semiconductor?s Information Appliance division. ?CCL/ITRI and ITE together have the system and software knowledge to help support our customers with information appliance system and analog sub system design. This allows customers to get to market more quickly and efficiently. Today?s agreement with CCL/ITRI and ITE is further evidence of our commitment to participate in the IT industry in Asia. National will continue partnering with appropriate entities to expedite the growth of information appliance manufacturing, both across the region and globally.?

Windows® CE Center of Excellence was established in the third quarter of 1998. An initiative partly funded by Microsoft and managed by CCL/ITRI in Taiwan, the mission of CCL/ITRI is to provide technical support and training to Taiwan?s IT industry in order to facilitate the development of locally-designed Windows® CE products.

Integrated Technology Express Inc. was founded in 1995 and is located in Hsinchu, Science-Based Industrial Park, Taiwan. The company is in the business of designing and selling high-integration chips that allow engineers to design compact and low power products. The company has expertise in the areas of computer core-logic, peripheral, LCD VGA and power management.

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 has annual sales of more than $2 billion and 11,000 employees worldwide. Additional company- and product information is available on the World Wide Web at www.national.com