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BUSINESS HIGHLIGHTS

Innovation
Filed more than 300 patent applications, up from 60 applications just five years ago.

Manufacturing
Continued more than $1.3 billion in construction of new facilities around the world.

Sold the assets of Dyna-Craft, Inc., a lead frame products supplier, to Malaysia Pacific Industries.

Customer Service
Opened full service World Wide Web site: http://www.national.com.

Acquisitions and Partnerships
Internet products: Created strategic partnership with California-based InfoGear to develop low-cost internet access telephones.

Wireless telecommunications products: Purchased SiTel Sierra, a Netherlands-based wireless and cellular products supplier; with this acquisition, National now provides complete Digital Enhanced Cordless Telephone (DECT) systems. Announced joint ventures with SMegga and the Postal and Telecommunications Industry, China, to build DECT software, handsets and base stations in China. Acquired assets of Low Temperature Cofired Ceramics package technology division from Hughes Microelectronics.

Power management products: Joined with Chartec of Denmark to create new battery charging algorithms.

Corporate Restructuring
Announced plans to segregate family logic, memory and discrete businesses in a separate organization, Fairchild Semiconductor.

Top Management
Named Brian L. Halla Chairman of the Board, President and Chief Executive Officer.




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9 October 1996