Texas Instruments Chairman Makes Live Phone Call from India to Europe on TI’s Single-Chip Cell Phone Solution

Live Call Marks Next Step in Delivering TI Solutions for Ultra-Low-Cost Handsets

NEW DELHI, INDIA (August 8, 2005) – At a press event hosted today by the Cellular Operators Association of India (COAI), Texas Instruments Incorporated (TI) [NYSE:TXN] Chairman Tom Engibous announced that TI has made a live phone call from India to Europe, further proving its single-chip cell phone technology. Engibous made the phone call on a live cellular network, demonstrating the next step in TI’s strategy to deliver a single-chip cell phone solution for ultra-low-cost handsets in emerging markets, such as India.

It is estimated that 80 percent of the world’s population has wireless coverage. However, only about 20 percent subscribe to wireless services due largely to the cost of mobile phones (source: GSM Association). This represents a huge opportunity for delivering mobile services to large sections of the world’s population. In India alone, roughly 11 percent of its total population has telecom connectivity with a mobile subscriber base of 58 million (source: Telecom Regulatory Authority of India, June 05). TI’s cost-effective single-chip cell phone solution enables handset manufacturers to capitalize on the burgeoning opportunities in India and other emerging markets worldwide.

“The mobile phone is already indispensable in established markets, and wireless will become even more useful in countries where today the availability of wired communication is limited,” said Engibous in his remarks to the press. “TI developed its single-chip cell phone solution specifically to narrow the ‘digital divide’. Our customers can use this technology to make ultra-low-cost handsets affordable in largely untapped consumer markets such as India, China, South America, Eastern Europe and other emerging markets.”

TI announced last December that it had delivered the industry’s first single-chip solution for mobile phones. Typical mobile phones require multiple chips to operate, which add to the overall cost. Developed through TI’s advanced 90nm CMOS manufacturing technology, the single-chip solution is now sampling and targets the mass-market voice-centric marketplace. Leveraging TI’s DRP™ (Digital RF Processor) technology, TI’s single-chip cell phone solution integrates the bulk of handset electronics onto a single chip to dramatically reduce cost, power requirements, board area, and silicon area – performance factors that are crucial for high-volume entry-level mobile phones.

Developed initially for GSM/GPRS handsets, TI’s single-chip cell phone solution is paving the way for future single-chip solutions for additional air interfaces. With a roadmap designed to even further reduce system costs, TI is committed to continuing to drive down overall handset costs for emerging markets.

Recognizing the need for affordable handsets in developing countries, the GSM Association (GSMA) introduced its Emerging Markets Initiative earlier this year. With a goal of delivering up to six million handsets in the first six months, GSMA is working with manufacturers to deliver products at a price point below US$40, with the potential to add 100 million connections per year.

"Continued innovation to design costs out of handset manufacture is a key factor in achieving greater affordability of mobility for developing markets," said Rob Conway, CEO of the GSM Association. "The GSM Association, having facilitated the creation of a new Ultra Low Cost handset segment, welcomes this announcement from Texas Instruments as another step in the industry's efforts to connect the unconnected."

Also at the press event, Engibous announced the first cell phones built entirely in India, from concept to design to production. Based on TI’s TCS chipset family, the GSM/GPRS handsets have been developed by Indian companies BPL and Quasar for Primus. The handsets also include TI’s BRF6150 single-chip Bluetooth® module and other TI components, including audio amplifier, LED drivers, voltage regulators and standard logic/linear components. These designs will serve as platforms for development of a variety of handsets for different market segments, from ultra low-cost to mid-range voice- and feature- rich data-centric handsets. The first phones based on the TI and BPL cooperation will be available in September 2005. Primus phones will be in production later in 2005.

Texas Instruments – Making Wireless

TI is the leading manufacturer of wireless semiconductors, delivering the heart of today's wireless technology and building solutions for tomorrow. TI provides a breadth of silicon and software and 15 years of wireless systems expertise that spans handsets and base stations for all communications standards, wireless LAN, Bluetooth and Ultra Wideband. TI offers custom to turn-key solutions, including complete chipsets and reference designs, OMAP™ application processors, as well as core digital signal processor and analog technologies built on advanced semiconductor processes. For more information.

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Statements contained in this news release regarding the wireless communications market and production and availability of TI wireless devices and other statements of management’s beliefs, goals and expectations may be considered “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. The following factors and the factors discussed in TI’s most recent Form 10-K could cause actual results to differ materially from the statements contained in this press release: qualification of TI wireless devices and actual customer demand for wireless devices. TI disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

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