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National Semiconductor Announces Transfer of Military B-Level Logic Products to Arrow/Zeus Electronics

Jul 13, 2005

July 13, 2005 - National Semiconductor Corporation (NYSE:NSM) today announced it has agreed to transfer its Military B-Level Logic products to Arrow/Zeus Electronics, a division of Arrow Electronics, Inc. (NYSE:ARW).  Arrow/Zeus Electronics serves the needs of military and aerospace customers.  Pursuant to the transfer agreement, Arrow/Zeus Electronics will provide a continued source of supply for National’s Military B-Level Logic product families.  Effective today, all new orders for these products will be handled by Arrow/Zeus Electronics.  National will support all existing customer orders for the military/aerospace market.   No “lifetime buy” activities are anticipated as a result of this transfer. 

National Semiconductor will continue to manufacture and market analog and signal–path products used in military/aerospace applications.  National also plans to continue manufacturing its existing line of space-level products.

The only products involved in this agreement are Military B-Level Logic products. These devices are manufactured in accordance with MIL-PRF-38535 and MIL-STD-883 Class Q or Level B, which refers to products identified and marked as JAN B, /883, Q, QML or QB.

“This transfer agreement is consistent with National’s ongoing focus on analog products,” said Jim Linaberry, product line director for National Semiconductor’s Hi–Rel Operations division.  “We will continue to provide analog power management and signal-path products for the military/aerospace market.”

"The transfer of National's Military B-Level Logic business to Arrow further reinforces Arrow/Zeus Electronics’ commitment to supporting the Hi-Rel customer base,” said Frank Stalzer, vice president and general manager, Arrow/Zeus Electronics. "We recognize the unique needs of military and aerospace customers and continue to provide innovative ways to support those needs."

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