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National Semiconductor Will Close Assembly and Test Plant in Singapore to Accelerate Cost Savings

Jul 13, 2005

July 13, 2005 - National Semiconductor Corporation (NYSE:NSM) today announced plans to close its assembly and test plant in Toa Payoh, Singapore.  The closure is consistent with National’s ongoing program to maximize resources and support for the company’s analog businesses.

Following National's March 10, 2005, announcement to seek a buyer for its Singapore plant, the company has now decided to accelerate its cost savings by closing the plant and consolidating its production volume into National's two other assembly and test plants in Melaka, Malaysia, and Suzhou, China. 

A majority of the equipment that is currently in Singapore will be transferred to the other assembly and test plants and utilized to support ongoing products and customers.  However, the closure will impact approximately 950 employees, including professional staff, technicians and operators. The management team in Singapore will work with local government agencies and other employers on job placement opportunities for affected employees.

In connection with the shutdown, the company currently estimates that it will incur charges in the range of $27 million to $30 million during the first quarter of fiscal 2006, primarily for severances.  The majority of the activities associated with the closure, including equipment transfers to other plants, are expected to take place over nine to 12 months.  The company expects to eventually achieve quarterly cost savings of $4 million to $6 million from this action.

National's financial release and conference call for the first quarter of fiscal 2006, ending August 28, 2005, are scheduled for September 8, 2005.  During the conference call, the company will discuss financial results and forward outlook.

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, communication 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, California, National reported sales of $1.91 billion for fiscal 2005, which ended May 29, 2005.  Additional company and product information is available at www.national.com.