National Semiconductor Press Release


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NATIONAL'S GEODE™ PROCESSOR POWERS MSN™ COMPANION BY EMACHINES

eMachines' new Internet Appliance boasts 'instant-on' feature with MSN

October 9, 2000 - National Semiconductor Corporation (NYSE:NSM), the leading provider of silicon and total system solutions for information appliances, announced an alliance with eMachines, Inc. (Nasdaq:EEEE) on the design of their new MSN Companion by eMachines, which provides consumers with easy access to email and Internet services.

The MSN Companion by eMachines, based on National's Geode™ reference platform, represents a new generation of tethered Internet Appliance devices with its small sleek design and power to take full advantage of the Internet. With both ease-of-use and set-up in mind, the MSN Companion by eMachines delivers all the features of MSN -- including web surfing, private email, and electronic communities -- at the push of a button.

"eMachines' new MSN Companion will give people a great way to get online and write emails, chat, and access the Internet content they want - without all the complexity and cost of a PC," said Michael Polacek, vice president of National's information appliance division. "Using MSN for Internet access will give users a simple, no-compromise connection to the web and access to MSN's premier sites and services."

"National's Geode reference design platform and products provide the MSN Companion by eMachines with the power and functionality that the customer needs without the usual start-up delays and subsequent software load times required by traditional PCs," said Stephen Dukker, president and CEO of eMachines, Inc.

At the heart of the device is National's Geode processor, which delivers powerful, easy-to-use multimedia technology by integrating on-chip graphics, audio, memory control, and PCI interface. Its x86 architecture provides consumers with a no-compromise Internet experience as it supports popular software plug-in modules for the Internet. 

The MSN Companion by eMachines, priced at $349, will be available by the end of October from retailers throughout the United States, including Circuit City, Office Depot, selected Wal-Mart stores, Micro Center, and Cyberian Outpost.

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 has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com
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This press release contains forward-looking statements relating to future events and results that are based on eMachines Inc.'s current expectations. These statements relate to the outlook and prospects for eMachines and the markets in which it operates. These statements involve risks and uncertainties including, without limitation, the level of demand for the MSN Companion; eMachines' and its suppliers' ability to timely develop, deliver, and support the MSN Companion; eMachines' ability to manage inventory; the cost and availability of key product components; competitive pressures; new product introductions by third parties; technological innovations; and overall market conditions, including demand for the MSN Companion and Internet services in general. Consequently, actual events and results in future periods may differ materially from those currently expected. Additional information regarding the factors that may affect eMachines' future performance is included in the public reports that eMachines files with the Securities and Exchange Commission.

National Semiconductor is a registered trademark of National Semiconductor Corporation. All other brand or product names are trademarks or registered trademarks of their respective holders.

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