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Texas Instruments Educational & Productivity Solutions First to Ship EPC Gen 2 Tagged Cases and Pallets to Wal-Mart

Dallas, TX (January 04, 2006)

Jan 4, 2006

Dallas, TX (January 04, 2006)

The Educational & Productivity Solutions (E&PS) business of Texas Instruments Incorporated (TI) (NYSE: TXN) today announced it is the first consumer goods supplier to ship RFID tagged cases and pallets based on the Generation 2 (Gen 2) Electronic Product Code™ (EPC) specification to Wal-Mart. Starting with a dozen Stock Keeping Units (SKUs) shipped to five distribution centers, TI E&PS, a Wal-Mart next 200 supplier, is tagging cases and pallets of its market-leading graphing, scientific and financial calculators using Gen 2 smart label solutions from Texas Instruments RFid Systems, NCR Corporation and Zebra Technologies. The dozen SKUs represent 100 percent of the calculator products E&PS ships to Wal-Mart.

Driving to set the standard for best-in-class international supply chains, TI E&PS is adopting EPC Gen 2 solutions as a platform to facilitate advanced data exchange and processing capabilities on a global basis with its retail trading partners. Advancements in retail supply chain data exchange processes enabled by EPC Gen 2 will allow TI E&PS to achieve improved product visibility and lower out-of-stocks at the retail store. TI E&PS began its development and implementation of EPC Gen 2 in 2004, deciding to leapfrog legacy EPC Gen 1 solutions which will be phased out in 2006. In building its Gen 2 implementation plan, TI worked closely with retail partner Wal-Mart.

TI is ahead of the curve with Gen 2 adoption, and we commend them on being the first to begin Gen 2 tagging of cases and pallets in support of Wal-Mart's RFID expansion plans in 2006," said Simon Langford, RFID strategy manager at Wal-Mart.

“This marks a significant milestone for our business and the industry as a whole,” said Keith Hodnett, vice president, Texas Instruments and supply chain manager for E&PS. “Moving forward, we are prepared to expand our Gen 2 efforts with other retail trading partners when they are ready.”

Production, Interoperability and Implementation

In July 2005, Texas Instruments RFid Systems began production of its EPC Gen 2 inlays and straps, leveraging its experience in delivering highly reliable, high volume and easy- to-integrate solutions to label converters and printer customers. Proving its success driving interoperability of its tags with leading smart label, printer and reader manufacturers, TI has accelerated Gen 2 market adoption by consumer goods manufacturers and retailers.

About Texas Instruments RFid Systems

Updated May 2006 Texas Instruments is the world’s largest integrated manufacturer of radio frequency identification (RFID) transponders and reader systems. Capitalizing on its competencies in high-volume semiconductor manufacturing and microelectronics packaging, TI is a visionary leader and at the forefront of establishing new markets and international standards for RFID applications. For more information, contact TI-RFid™ Systems at 1-800-962-7343 (North America) or +1 214-567-7343 (International), or visit the Web site at www.ti-rfid.com.

Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers’ real world signal processing requirements. In addition to Semiconductor, the company includes the Educational & Productivity Solutions business. 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.

Educational & Productivity Solutions, a business of Texas Instruments, provides a wide range of advanced tools connecting the classroom experience with real-world applications and enabling students and teachers to explore math and science interactively. Designed with leading educators, Texas Instruments' educational technology and services are tested against recognized third-party research on effective instruction and improved student learning. Such research shows that use of graphing calculators and wireless collaborative technology in the classroom helps teachers implement instructional strategies that lead to higher student interest, engagement and achievement in mathematics.*For more than 15 years, TI has worked closely with educators and administrators to develop student-focused curricular and supplemental classroom materials, and it supports the world's largest professional development organization for the appropriate use of educational technology. More information is available at www.education.ti.com.

*Based on related research on classroom communications systems and specific pedagogy. See education.ti.com/research for more information.