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TI Completes Acquisition of Chipcon

28 January 2006

Texas Instruments (TI) Incorporated (NYSE: TXN) today announced it has finalized its previously announced acquisition of Chipcon, a leading company in the design of short- range, low-power wireless RF (radio frequency) transceiver devices. This acquisition will expand TI's high-performance analog portfolio and will enable TI to provide customers with industry-leading ZigBee(TM)-compliant solutions and a broad range of proprietary radio frequency integrated circuits that enable innovative low-power wireless applications. (See http://www.ti.com/chipcon-pr .)

The acquisition combines Chipcon's market-leading radio frequency portfolio, technical support and development tools with TI's high-performance analog silicon technologies, systems expertise and sales network to provide customers with complete low-power wireless solutions. Chipcon's product line fully complements TI's existing high-performance analog, power management and ultra-low-power microcontroller portfolio.

Chipcon has a strong position within both proprietary and standards-based radio technologies and targets both consumer applications such as wireless keyboard/mouse, wireless VoIP solutions, remote controls, wireless gaming accessories and active RFID systems, as well as home and building automation applications such as alarm and security systems, automatic meter reading systems and other monitoring and control systems.

The Chipcon product line strengthens TI's position in ZigBee, a global standard for wireless monitoring and control applications. Chipcon was the first company to launch a 2.4 GHz IEEE 802.15.4 compliant and ZigBee-ready RF transceiver. The company also introduced the world's first true System-on- Chip ZigBee-compliant solution and recently added location estimation capability to this product. Chipcon is the first company to offer three ZigBee-compliant development platforms and provides a true one-stop-shop solution including RF transceivers, the industry-leading Z-Stack(TM) ZigBee protocol software, development tools and proven reference designs.

Chipcon also offers a broad range of proprietary low-power and high- performance CMOS RF-ICs for a large number of wireless applications in the 300 to 1000 MHz and 2.4 GHz ISM frequency bands. This product portfolio includes transceivers as well as true System-on-Chip solutions. Unlike competing System-on-Chip solutions, these products deliver everything the designer needs in a single die without requiring off-chip memory and enable shorter time-to- market, lower cost and smaller end products, due to the high integration level.

Chipcon will continue to operate as a wholly-owned subsidiary of TI from its headquarters in Oslo, Norway, as well as from its software design center in San Diego, California. TI is paying approximately $200 million for the acquisition.

About Texas Instruments

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 Educational & Productivity Solutions. 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 http://www.ti.com .

Trademarks

ZigBee is a trademark of ZigBee Alliance. Z-Stack is a trademark of Figure 8 Wireless, Inc. All registered trademarks and other trademarks belong to their respective owners.

Source: prnewswire