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Texas Instruments Celebrates 50th Anniversary of Listing on the New York Stock Exchange

TI Executives to Ring The Opening BellSM on October 27

Oct 22, 2003


TXN: 50 YEARS ON THE NYSE
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Webcast: The Opening BellSM
Photo: TI Rings The Opening BellSM
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TXN Certificate No. 1
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DALLAS (Oct. 24, 2003) – Texas Instruments Incorporated (TI) (NYSE: TXN) executives will mark 50 years of listing on the New York Stock Exchange (NYSE) by ringing The Opening Bell at 8:30 a.m. CST on Monday, October 27 (See

www.ti.com/nyse50

.)



“TI has accomplished tremendous things during these fifty years,” said TI Chairman, President and CEO Tom Engibous. “In the 1950s, TI helped create the semiconductor industry. We were the first company to commercially produce silicon transistors in 1954, and four years later, TI engineer Jack Kilby invented the integrated circuit, which changed the electronics industry forever. Today, we continue to push the boundaries of semiconductor technology with digital signal processors and analog chips that are at the heart of today’s communications world and invisibly touch people’s lives many times a day.”



Along with Mr. Engibous, representing TI on the bell platform will be Rich Templeton, executive vice president and chief operating officer; Kevin March, senior vice president and chief financial officer; Bill Aylesworth, senior vice president and former chief financial officer; and Ron Slaymaker, vice president.



Commonly referred to as “Texas” on the floor of the NYSE, TI’s 50-year history with the Exchange is a milestone that comparatively few companies can match. Of the nearly 2,800 listed companies, only 230 – or about 8 percent – preceded TI’s listing.



TI’s Board of Directors and management team in the early 1950s wanted to grow the company, and they achieved their goal. From a $27 million company with less than 50 shareholders in 1953, today TI is a more than $9 billion global company, ranked 223 on the Fortune 500, and has about 700,000 shareholders. As a publicly held company on the Exchange, TI has delivered more than $2.2 billion in dividends to its shareholders, uninterrupted since it first began making dividend payments in 1962.



“We’re proud of what TI has accomplished in the past, but even more excited by what the next 50 years holds for TI,” said Chief Operating Officer Rich Templeton. “We have great strength in signal processing, process technology and integration capabilities. We will keep building on the legacy of the early TI leaders to grow the company for the benefit of our shareholders, our customers and our employees,” said Mr. Templeton.



How It All Began -- Listing on the NYSE

TI’s route to the Exchange was driven by its desire for growth. Founded in 1930, TI’s predecessor company, Geophysical Service, focused on geophysical exploration. But during World War II and the years immediately following, an increasing amount of the company’s business came from military contracts. It became clear that there were even larger opportunities for growth in manufacturing, and that engineering rather than geophysics would drive the company’s future growth. In 1951, a manufacturing unit was formally set up with a new company name of Texas Instruments.



To achieve the type of growth its executives envisioned, the company needed an infusion of capital, so its Board began looking for ways to access funding. At the time, TI was a closely held corporation with fewer than 50 shareholders – not enough to meet the listing requirements of the New York Stock Exchange. Growing the list of stockholders required for listing could have taken years to accomplish.



TI entered into talks with Intercontinental Rubber Company, a producer of guayule and natural rubber, who found its production at an almost standstill due to rubber price declines. Though it lacked product, Intercontinental Rubber had two desirable assets from TI’s perspective: liquid capital assets and a listing on the New York Stock Exchange. Meanwhile, Intercontinental Rubber’s Board was looking for a way to invest its assets in a growth opportunity. After more than a year’s discussion, the two companies agreed to merge through an exchange of stock.



With the capital infusion from the merger, the complexion of TI forever changed. TI acquired the assets of Intercontinental Rubber, and the addition of enough new stockholders to permit its listing on the NYSE. TI became a publicly held company. TI stock, known by its ticker symbol TXN, first traded on the Exchange on October 1, 1953, and was the first stock to cross the ticker tape when the NYSE opened at 10 a.m. that morning.



As was tradition at the time, then company president J. Erik Jonsson purchased the first 100 shares of TI stock at a price of 5 ¼ per share, or just over $0.02 per share after adjusting for all the splits over the last 50 years. Fifty years later, Mr. Jonsson’s $525 investment would be worth more than $900,000, reflecting the continued growth of Texas Instruments.



“That growth, fueled by decades of technological advancements that have changed the world, is a legacy that few companies can match and TI is proud to own,” said Mr. Engibous.

# # #

Texas Instruments Incorporated provides innovative DSP and Analog technologies to meet our customers’ real world signal processing requirements. In addition to Semiconductor, the company’s businesses include Sensors & Controls, and Education Technology. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.

Trademark:
The Opening Bell is a servicemark of the New York Stock Exchange.