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Texas Instruments Achieves MasterCard® PayPass™ Certification for its Contactless Payment Card Inlay

Feb 21, 2006

Dallas, TX (February 21, 2006)

Texas Instruments Incorporated (TI) (NYSE: TXN) today announced that its high-frequency ISO/IEC 14443 microprocessor-based payment card inlay has achieved certification from MasterCard International for use in its PayPass™ contactless payment program in North America. TI’s contactless payment technology has been certified for all three components of MasterCard PayPass conformity requirements, including Card Type Approvals CTA-1 (analog performance), CTA-2 (digital and functional performance), and CAST (Compliance Assessment Security Testing).

Capitalizing on its fully-integrated semiconductor design and manufacturing capabilities, TI’s certified solution incorporates a secure, low-power microprocessor with an embedded PayPass application and a small-size radio frequency antenna, into a thin, PVC pre-laminate sheet that can be easily integrated into standard card manufacturing production processes. TI’s inlay is small enough to enable 4-line embossing, while continuing to support the four centimeter read range requirements of PayPass.

“Issuing banks are focused on providing the highest quality contactless payment cards to their customers,” said Matt Smoczynski, Director of Marketing, Perfect Plastic Printing. “Perfect Plastic looks forward to adding this solution to our growing portfolio of contactless card products.”

“Component level conformance approval is important for both the contactless card product certification and manufacturing processes. Component testing reduces the need for integrated card makers to duplicate testing efforts. As a result, they can focus more energy on the product certification and manufacturing efficiency requirements of their card-issuer customers,” said Erik Michielsen, Director of RFID and M2M research at ABI Research.

Texas Instruments is delivering its PayPass inlays to card manufacturers, including Perfect Plastic Printing, who are creating credit and debit cards for MasterCard issuing banks. TI’s secure microprocessor has been optimally designed to meet the needs of the contactless payment infrastructure for the North American market. As the contactless payment industry continues to grow, TI will be offering a range of antenna and inlay designs for a variety of payment devices, including cards, key fobs, and other form factors.

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.