NATIONAL SEMICONDUCTOR acquires VIVID SEMICONDUCTOR to expand strengths in flat panel display technologies

July 19, 2000 - National Semiconductor Corporation (NYSE:NSM) today announced it has acquired the operations of Vivid Semiconductor, Inc., a flat-panel display design firm based in Chandler, AZ. National said the addition of Vivid's technologies and expert analog engineering resources will expand National's strengths in creating silicon solutions for the rapidly growing flat-panel display market. Terms of the acquisition were not disclosed.

Vivid was founded in 1993 as a privately held company and is best known for its patented technique for fabricating high-voltage semiconductor devices using standard low-voltage digital CMOS processes. This technique is important in increasing the performance of display drivers built into the liquid crystal (LCD) flat panel displays used in LCD monitors, laptop computers and other portable electronics.

The Vivid technology also increases National's capability to run high voltage designs on its standard CMOS processes at its state-of-the-art manufacturing facility in South Portland, Maine. Vivid also developed a patented data bus architecture for LCD displays it calls WhisperBus™ which both improves display performance and reduces electromagnetic interference effects.

"Vivid's advanced technologies and outstanding engineering team will greatly enhance National's efforts in innovating new solutions for the flat panel display market. This acquisition also will accelerate and expand our introduction of leading-edge silicon solutions for flat panel applications," said Patrick J. Brockett, executive vice president and general manager of National's Analog Group. "Vivid's products and intellectual property fit like a glove to complement our existing capabilities and programs in serving the flat panel display market," he added.

National has targeted flat panel displays as a key market segment. Forecasts for 2001 indicate as many as 38.5 million high-performance flat panel units are projected to be sold, up from 28.4 million units in 2000, according to market research from Display Search.

Samsung Electronics, the world's leading vendor of flat panel displays, recently recognized National's expertise in this market when it announced a partnership with National to create a new standard for ultralight and ultrathin flat panel displays based on National's RSDS (reduced swing differential signal) technology. RSDS provides substantial power, weight and cost savings, which are critical in battery-powered and mobile applications. National also is driving flat panel display performance to desktop systems as well as portables.

Vivid's team of 25 product development, analog, and mixed signal design engineers will remain in Chandler, AZ. National said its plan is to increase the size of the group substantially by hiring more analog and mixed-signal design engineers and to make the Vivid facility one of National's global design centers. National currently has 27 design centers around the world.

About Vivid Semiconductor

Using a patented extended voltage range architecture, Vivid has developed technology that allows designers to build enhanced-performance flat-panel displays with full color and full-motion video. Vivid's column drivers enable the design of TFT LCD panels with superior image quality and the lowest power consumption, all at system costs competitive with any other solution. Vivid has driver products optimized for LCD monitors and low-power notebook TFT-LCDs. They are available for a wide range of panel resolutions up to UXGA. For more information, contact Vivid Semiconductor or visit our web site at http://www.vividsemi.com/.

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 $2.1 billion for its last fiscal year and has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at http://www.national.com/.