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NATIONAL SEMICONDUCTOR'S MacPHYTER 10/100 ETHERNET CONTROLLER CAPTURES TOP RETAIL ADAPTER DESIGN WIN IN FAST ETHERNET MARKET

Integrated Single-Chip MAC/PHY Device Selected by NETGEAR

Oct 27, 1999

October 27, 1999 -- National Semiconductor (NYSE: NSM) announced today that NETGEAR? Inc., a premiere innovator of connectivity products, is in the process of incorporating National's DP83815 MacPHYTER? single-chip 10/100 PCI Ethernet Controller networking solution into its new product family of 10/100 PCI Ethernet adapters scheduled to be released late 1999.

"Our target customers in the SOHO (small office/home office) networking market demand a no-compromise Ethernet solution," said Patrick Lo, vice president and general manager of NETGEAR Inc. "With the MacPHYTER, National delivers a tightly integrated, full-featured device that focuses on quality and performance at a price that makes networking ubiquitous."

"NETGEAR recognized that the MacPHYTER system-on-a-chip provides a superior price/performance LAN solution for the networked home and business market," said Vikram Karvat, marketing manager of National Semiconductor's networks group, "We're especially encouraged by NETGEAR's decision in the retail adapter market, and other early wins across a broad application spectrum," Karvat said.

MacPHYTER, integrates the industry's first DSP-based physical layer solution and tops today's performance scale with error-free reception at upwards of 140 meters, while having extremely low power consumption of 170 mA (560 mW) during full operation, and 10 mA (33 mW) in sleep mode. MacPHYTER provides such industry-leading remote management features as wake-on-LAN (WOL), PXE 2.0 support, and the latest power management support. The MacPHYTER device provides a foundation for future development of network solutions at National.

About NETGEAR Inc.
NETGEAR, based in Santa Clara, Calif., was founded in January 1996 and is a wholly owned subsidiary of Nortel Networks Corporation (NYSE:NT). NETGEAR's mission is to serve the small-office and home-office (SOHO) market (1 to 50 employees) and home users with affordable, easy-to-install, powerful networking solutions. NETGEAR's portfolio of products includes: Phoneline10X Family, 10, 100 and 10/100 Mbps hubs, switches and adapter cards; Gigabit adapter cards and switches; network starter kits; ISDN routers and modems; print servers; network information appliances; and wireless technology. NETGEAR is also a member of the Home Phoneline Networking Alliance (HPNA). NETGEAR can be reached by calling 1-408-988-2400.

Nortel Networks delivers value to customers around the world through Unified Networks* solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies; cable television carriers and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver and London stock exchanges. Nortel Networks had 1998 revenues of $17.6 billion and has approximately 75,000 employees worldwide.

About National Semiconductor
National Semiconductor provides system-on-a-chip solutions for the information age. Combining real-world analog and state-of-the-art digital technology, the company's chips lead many sectors of the personal computer, communications, and consumer markets. With headquarters in Santa Clara, California, National reported sales of $2 billion for its last fiscal year and currently has about 11,000 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.