Texas Instruments and NSCC Deliver the Industry's First Single-Chip AVS IPTV Set Top Box Based on DaVinci(TM) Solution

Easy-to-use and Cost Effective AVS IPTV STB Solution Speeds the Deployment of IPTV Services in China

BEIJING -- May 21, 2007 -- Texas Instruments Incorporated (TI) (NYSE: TXN) and National Source Coding Audio & Video Technologies (Beijing) Co., Ltd. (NSCC) today announced the delivery of the industry's first single- chip IPTV set-top box (STB) solution enabling dual decoding of AVS and H.264, HM2006. Built on TI's innovative DaVinci(TM) technology platform, the solution targets on home audio and video entertainment applications that adopt China's digital television (DTV) standard - AVS. It is an easy-to-use and cost effective solution that will drive the widespread deployment of IPTV services in China. (See http://www.ti.com.cn.)

According to In-Stat, China's IPTV subscribers will be 6.3 million with the annual revenue rapidly reaching to US$888 million by 2010. As the local DTV standard, AVS has been increasingly matured. The timely delivery of the single-chip IPTV STB solution by TI and NSCC will push forward the development of this market with great potential.

As China's first single-chip IPTV STB solution that concurrently enables AVS and H.264 dual decoding, HM2006 is integrated with NSCC's AVS decoding algorithm and uses TI's innovative DM644x digital signal processors (DSPs) based on DaVinci technology. The solution enables AVS, H.264, MPEG2, MPEG4 and WMV video decoding. Digital signal processing gives designers using TI's DaVinci technology the ability to add video functions to an application, because the programmable engine makes is as simple as writing to an application programming interface (API), saving original equipment manufacturers (OEMs) months of development time and lowering overall system costs. The solution also can help operators meet faster deployment schedules at a lower development cost.

"China's IPTV market is experiencing gradual but solid growth. Today's announcement of the industry's first local AVS-enabled single-chip IPTV STB solution will surely push forward the market," said Kun Lin, Vice President of TI Greater China Strategic Business Development. "We believe that TI's integrated, flexible and programmable devices based on DaVinci technology will promote the deployment of this industrial ecosystem and provides OEMs and operators with low-cost, high-performance, simple and easy-to-use technical solutions, thus eventually allowing consumers to enjoy more clear and vivid video experiences with reduced expenses."

"TI's ability to provide an IPTV STB single-chip hardware platform within such a short time in the AVS deployment process plays an important role in the promotion of AVS. NSCC believes that the introduction of this solution will significantly accelerate AVS promotion efforts in the IPTV market," said Zhu Xuiao, NSCC deputy general manager. "The cooperation is just the beginning. We look forward to deepening our cooperation with TI, give full play to the advantages of DaVinci technology-based processor and introduce more solutions for AVS codecs applications."

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 includes the Education Technology business. 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.

About NSCC

Founded in December 2003, National Source Coding Audio & Video Technologies (Beijing) Co., Ltd. is a joint-stock system enterprise engaged in the development of digital audio and video core technologies, standards and key application products. Its leading R&D forces come from the Motorola-NCIC Joint Research and Development Laboratory for Advanced Computer and Communication Technologies founded by the Computing Institute of the Chinese Academy of Sciences in 1996. Shareholders of the company consist of 5 units from industries, universities and research institutions which have years of research experiences and an industrial background. As one of the leading sponsors of AVS standard research and industry promotion, NSCC is committed to the R&D and promotion of the next-generation digital audio and video technology AVS standard and products, and has introduced AVS-based decoding software, decoding chip and Powercoder serial encoders. For more information, visit http://www.usc.com.cn.