National Semiconductor Acquires Xignal Technologies

National Semiconductor Corporation (NYSE: NSM) announced that it is acquiring Xignal Technologies AG, a German-based developer of high-speed data converters. Xignal is a pioneer in the development of continuous-time sigma delta analog-to-digital converters (ADCs), a technology that enables high-resolution (12-bits and above) ADCs at megahertz (MHz) speeds with greatly reduced power levels compared to traditional pipeline solutions. The continuous time architecture greatly simplifies system design as it allows incorporation of other signal path functions, such as on-board clocks, low- noise amplifiers and external filters.

The acquisition of Xignal’s technology and design team strengthens National’s growing position in the data conversion market. This investment in continuous-time sigma delta intellectual property (IP) augments National’s existing sigma delta IP (widely utilized in digital temperature sensor and audio products) and complements its ongoing sigma delta technology development. Initial products from the acquisition will be targeted at applications requiring a high level of signal path integration and extremely low power, such as medical ultrasound imaging, and will expand over time to address test and measurement and communication applications.

Terms of the transaction are not currently disclosed. Depending on the final allocation of the purchase price, some portion may be recorded as an in- process research and development charge in the current quarter results. National Semiconductor is scheduled to report its third fiscal quarter 2007 results on March 8, 2007.

About National’s Data Conversion Portfolio
National Semiconductor is a leading provider of high-speed and general-purpose data converters. Based on current WSTS market data, National has doubled its data conversion market share over the past three years. National’s portfolio is rich in differentiated products that offer a unique set of value- added features, including the fastest 8-bit converters with speeds up to 3 GSPS, 12- and 14-bit converters featuring the industry’s highest input bandwidth of 1.1-GHz at speeds up to 170 MSPS, and the easiest-to-use family of pin- and function-compatible 8-, 10- and 12-bit general-purpose A/D and D/A converters with speeds up to 1 MSPS. National’s products offer the optimal performance at the lowest power consumption for communications infrastructure, ultrasound medical imaging, test and measurement, and other applications.

About National Semiconductor
National Semiconductor, the industry’s premier analog company, creates high-value analog devices and subsystems. National’s leading-edge products include power management circuits, display drivers, audio and operational amplifiers, interface products and data conversion solutions. National’s key analog markets include wireless handsets, displays and a variety of broad electronics markets, including medical, automotive, industrial, and test and measurement applications. Headquartered in Santa Clara, Calif., National reported sales of $2.16 billion for fiscal 2006, which ended May 28, 2006.