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National Semiconductor Awarded Key Supply-Chain Security Certification

New U.S. Government C-TPAT Certification Ensures Greater Security and Faster Deliveries for National's Worldwide Customers

May 15, 2003

May 15, 2003 - National Semiconductor Corporation (NYSE:NSM) today announced that it has met the stringent guidelines established by the U.S. Department of Homeland Security, Customs and Border Protection for a new security certification. C-TPAT is designed to enhance the security of shipments while ensuring a smooth flow of products into the United States.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary industry/government cooperative program that is designed to improve worldwide supply chain security. National is one of the first companies to receive C-TPAT certification.

"C-TPAT certification is a major step forward in our ongoing effort to guarantee customers the fastest, safest, most cost-effective deliveries of National products anywhere in the world, said Kamal Aggarwal, executive vice president, Central Technology and Manufacturing Group, National Semiconductor. ?Security is a global concern and we view C-TPAT certification as an important benchmark achievement."

"Customs and Border Protection is proud to work with leading companies such as National Semiconductor to help enhance the security, safety and speed of global commerce," said Robert E. Perez, C-TPAT director at Customs. "National's voluntary participation in the C-TPAT partnership is compelling testimony of the company's commitment to supply-chain security."

To obtain C-TPAT certification, National performed a complete security analysis of its product supply chain including physical and personnel security, access control, employee training, manifest procedures, as well as air and ground transportation security. In addition, the company trained its factory personnel, freight carriers, and forwarders on the security requirements of the C-TPAT program. The certification process took approximately six months and has resulted in a continued smooth and timely flow of National products into the United States. 

National's Global Supply Chain
National is a supplier of high-technology integrated circuits with a complex worldwide supply chain. The company manufactures about 23,000 different kinds of semiconductor chips that are the heart of systems such as mobile phones, notebook computers, displays, scientific and medical equipment, as well as many other types of devices. National fabricates semiconductor chips at facilities in Arlington, Texas, South Portland, Maine, and Greenock, Scotland. The chips from these plants are sent to test and assembly facilities in Melaka, Malaysia, and Singapore.

National ships approximately four billion finished integrated circuits per year to customers from its state-of-the-art global distribution center in Singapore. The facility, which is run by UPS Logistics for National, serves approximately 765 customers at 3,719 customer locations throughout the world. Approximately 90,000 customer companies worldwide also purchase National products from its network of distributors.

About National Semiconductor
National Semiconductor is the premier analog company driving the information age. Combining real-world analog and state-of-the-art digital technology, the company is focused on analog-based semiconductor products, which include stand-alone devices and subsystems in the areas of power management, imaging, display drivers, audio, amplifiers and data conversion. The company targets key markets such as wireless, displays, information infrastructure and a broad range of portable applications. With headquarters in Santa Clara, California, National reported sales of $1.5 billion for its most recent fiscal year. Additional company and product information is available on the World Wide Web at www.national.com