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National Semiconductor Acquires DigitalQuake, Inc. To Accelerate Its Flat Panel Display Technologies

Sep 3, 2002

September 3, 2002 - National Semiconductor Corporation (NSM:NYSE) today announced it has acquired all of the capital stock of DigitalQuake, Inc., a Campbell, California developer of digital display products. Terms of the acquisition, which closed on August 29, 2002, were not disclosed.

"DigitalQuake adds several key technologies to National's existing digital display capabilities," said David Handorf, vice president of National Semiconductor's Displays Group, "including an industry-leading, fourth-generation scaling solution, a triple analog-to-digital converter and an advanced digital video interface with the latest encryption/decryption technologies. DigitalQuake's intellectual property helps National Semiconductor provide a total system solution for flat panel monitors."

National is a recognized leader in providing semiconductor solutions for companies that manufacture PC notebook displays and desktop monitors.

"Combining DigitalQuake's technologies with National's strengths --- its advanced low emissions LVDS and RSDS interface technologies, integrated timing controllers and high-volume manufacturing capabilities --- enables National to provide fully integrated semiconductor solutions for the display market," said Paul A. Lessard, who served as CEO of DigitalQuake since its founding in February 2000. In its first two years DigitalQuake quickly developed an innovative scaler chip for digital displays. Scaling is one of the features needed to change the resolution and size of the display.

DigitalQuake's highly skilled designers will be integrated into National Semiconductor's Displays Group.  The company has worked with National's design engineers since February 2002 to combine its scaler technology with National's integrated timing controller technology. As a result of this collaboration, an advanced mixed-signal, system-on-chip solution has already been demonstrated to customers.

Flat panel displays take up much less space and use less electrical power than conventional cathode ray tube (CRT) monitors. They are replacing CRTs in desktop computer systems and also gaining acceptance in the Digital TV market. According to industry estimates, the market for flat-panel monitors  is forecast to exceed $20 billion in calendar 2002. In addition to driving integration in flat-panel displays, National is also a leading supplier of circuits for conventional CRT monitors.

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 the fast growing markets for wireless handsets; displays; information infrastructure, and information appliances. With headquarters in Santa Clara, California, National reported sales of $1.5 billion for its most recent fiscal year and has about 10,000 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.