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National Semiconductor Equips All Employees with 30-Gigabyte Video Apple iPods To Cap Off Most Successful Year in Company’s History

Jun 12, 2006

June 12, 2006 – National Semiconductor Corporation (NYSE:NSM) capped off its most successful fiscal year in history today by equipping every one of its 8,500 employees with a 30-gigabyte video iPod.  While designed for personal entertainment, the popular Apple MP3 player will be used as a new training and communications tool at National, providing a convenient real-time method for employees to download National podcasts and other employee communications.

 “We’re looking for new and more effective ways to communicate with our employees --- and the iPods will help us do both,” said Brian L. Halla, National’s chairman and CEO.

National announced record operating profits and gross margin Thursday when it announced its Q4 and fiscal year 2006 financial results.  The Company’s 1,600 Santa Clara employees celebrated the milestones at National’s annual employee picnic Friday afternoon.  Halla announced the Company’s iPod communications program at the picnic.

The analog integrated circuits that National designs, manufactures, markets and sells provide portable devices (such as the iPod) with longer battery life, sharp images and crystal clear sound.

“Our employees were vital contributors to our most successful year in National’s 47-year history, and we wanted to equip them with the tools to help us create more value for our customers,” said Halla.  “The Apple iPod exemplifies the next stage of the consumer electronics revolution as content such as downloadable music, movies and digital photos --as well as a compelling user experience-- takes center stage.  And, it’s analog that makes the difference.  This is where National, and our employees, deliver value to our customers.”

About National Semiconductor
National Semiconductor, the industry's premier analog company, creates high-value analog devices and subsystems.  National's leading-edge products include power management circuits, display drivers, audio and operational amplifiers, interface products and data conversion solutions. National's key analog markets include wireless handsets, displays and a variety of broad electronics markets, including medical, automotive, industrial, and test and measurement applications. Headquartered in Santa Clara, Calif., National reported sales of $2.16 billion for fiscal 2006, which ended May 28, 2006.  Additional company and product information is available at www.national.com