NATIONAL SEMICONDUCTOR UNVEILS INDUSTRY'S FIRST SINGLE-CHIP SOLUTION FOR THIN CLIENT MARKET

"Thin-Client-on-a-Chip" Increases Performance and Reliability, Reduces System Cost and Power Consumption

September 18, 2000 - Strengthening its position as the leading provider of thin client technology, National Semiconductor Corporation (NYSE: NSM) today launched the industry's first single-chip solution optimized for thin client computing. A true "thin-client-on-a-chip," this new solution enables customers to lower overall system cost and speed time-to-market by simplifying design, while reducing component count, main system board size and power consumption. Available immediately, it makes a thin client that is integrated into a flat-panel display a reality.

The Geode™ SC2200 processor, the newest addition to National's next generation of Geode technology for the information appliance market, enables thin client systems to be smaller, more reliable and cost-effective. Each of the next-generation processors incorporates specific functionality that meets the technical requirements of National's three primary markets - the set-top box, personal access device and thin client market. Manufactured on the company's advanced 0.18-micron process technology, the highly-integrated SC2200 processor features small form factor, low power consumption and high performance. It is ideal for a wide range of thin clients in enterprises, government, education, healthcare, banking, and financial industries.

"National is the preferred thin client technology provider and has the largest customer base including such leading OEMs as Wyse, Compaq, IBM, Acer, Boundless and Dell," said Ziv Azmanov, director of thin client business unit at National. "The Geode SC2200 single-chip processor is designed to meet and exceed our customers' demands for their next-generation thin clients. It also demonstrates our continuing commitment to expand thin client technology into new markets."

"Compaq is dedicated to lowering our customers' IT costs with thin client server computing solutions and services," said Tad Bodeman, Director of Thin Client Product Management, Compaq Computer Corporation. "National's continued innovation represented by the thin-client-on-a-chip technology will provide new possibilities for serving our customers' worldwide requirements. The combination of our technologies, along with Compaq's global reach, will allow customers to extend the cost advantages provided by thin client server computing into an increasingly greater portion of their enterprises."

National dominates the thin client technology market with nearly 80 percent of the market share. A leading analyst firm, IDC, predicts the thin client market will exceed 9.5 million units by 2004. The largest percentage of those shipments will be Web-based terminals.

"Wyse has been committed to working with National to develop a thin-client-on-a-chip solution, and this type of innovation has helped thin clients become a better solution than the PC for many mainstream applications," said Jeff McNaught, vice president of customer marketing at Wyse Technology. "National Semiconductor-based Winterm™ thin clients will continue to play a key role in our ongoing Thinovation initiative, designed to help people communicate and access information affordably."

Thin Client System-on-a-Chip Integration Made Possible
The Geode SC2200 processor incorporates a Geode GX1 32-bit, x86-compatible processor module, a CRT and TFT video processor, core logic and a Super I/O block. Additionally, the SC2200 processor provides an optimal solution for thin clients that are integrated into a flat-panel display, an area where National's Analog Products Group provides chip expertise.

A thin client desktop device is optimized to access information and data from a central server. This next generation of computing allows organizations to reduce cost, deploy applications more easily and quickly, and scale technology to meet growing information needs. Leveraging its core analog and Geode technologies as well as its strong integration capabilities, National aims to further reduce total system cost and power consumption, while increasing the thin client system's reliability. The power dissipation of the SC2200 processor is less than two watts under typical operating conditions. The reference platform based on the Geode SC2200 processor allows customers to quickly get their products to the market.

In today's business environment, the computing power and flexibility of a PC is often unnecessary and potentially undesirable because end-users can reconfigure, load local applications (including viruses) or otherwise tamper with a PC's settings. Various sectors, such as government, education, hospitals, insurance, banking, airlines and hotels are turning to thin client networks because they are extremely reliable and can be operational from a centralized server. Companies with departments that use highly standardized computing tasks, like sales or service call centers, data entry departments, or technical support desks, can realize significant cost savings from thin client deployment.

National as Thin Client Partner of Choice
The Geode SC2200 processor makes it easy for organizations to improve their internal computing structure by offering quality computing at an overall lower cost and smaller form factor. They can also work with National's many partners to provide differentiated and complete system solutions. In addition to driving the thin client technology, National is a leading deployer of thin client solutions and has unique insight into the workings of a thin client system solution.

Pricing and Availability
The Geode SC2200 processor, packaged in 432-pin EBGA, is shipping now and is priced at less than $50 each for high volume applications. For more information on the Geode SC2200, visit National's World Wide Web site at www.national.com/pf/SC/SC2200.

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 $2.1 billion for its last fiscal year and currently has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.