Texas Instruments Reaches Ten Year Milestone in VoIP Software and Silicon Shipments

TI Surpasses 150 Million Ports Shipped, Driving VoIP Technology Further into the Mainstream

BOSTON (Sept 20, 2005) - Texas Instruments Incorporated (TI) [NYSE:TXN], a leading supplier of IP telephony solutions to the industry since its inception, today announced it has shipped over 150 million Voice over IP (VoIP) ports, retaining its leadership in the VoIP market and continuing the role that TI's technology has played in the explosive growth of VoIP throughout the last 10 years. TI offers worldwide communications equipment manufacturers and designers the broadest range of robust and complete voice, fax and video over IP solutions built around TI's digital signal processing (DSP) technology and award -winning Telogy Software® for VoIP.

"The VoIP landscape has changed drastically over the past few years, and TI has certainly been a driving force, providing Vonage with high quality technology that allows us to offer a variety of devices with enhanced features and capabilities," said Louis Mamakos, CTO of Vonage Holdings Corp. "We now serve one million subscriber lines worldwide, and virtually all of the calls made by our customers are touched by TI's field -proven technology. The collaboration between Vonage and TI has been instrumental in developing our presence in the VoIP market."

As one of the earliest pioneers in VoIP, TI began developing products for the enterprise market in the (mid/early) 1990s, when companies started to integrate different types of data on their networks and the proliferation of the Internet presented an opportunity for a universal transport mechanism. As this shift occurred, it became clear that the data world was rapidly being transformed into a common method for transporting a variety of applications. Since then, TI has expanded its suite of VoIP products to include solutions for every segment of the market, including IP phones, residential and enterprise gateways, high -density infrastructure equipment and Voice over Cable and DSL equipment. As the broadband telephony market moves further into the mainstream, TI remains well positioned to offer a new family of software and silicon solutions for IP -based voice and video -enabled consumer products.

"As a global leader in end -to -end VoIP delivery systems, Motorola is leading the development of next -generation infrastructure and consumer premise devices for all types of service providers," said Charles Dougherty, Motorola Corporate Vice President and General Manager, Connected Home Solutions. "TI's advanced VoIP software and silicon provides us with one of the most robust solutions on the market. We congratulate TI on this milestone, and look forward to their continued advancements in the VoIP space."

According to the August 2005 Worldwide VoIP Semiconductor 2004 Vendor Market Shares report published by IDC, TI continues to maintain the dominant share position in VoIP, "with its strong DSP offerings, especially in PBX and gateway sockets." TI holds the largest share of the VoIP CPE market and has provided technology for more than 80 percent of all residential and enterprise VoIP gateways. TI ships its IP phone technology to the highest volume manufacturers in the world and continues to own a majority share of the IP phone segment. TI works with the world's leading VoIP equipment manufacturers including 3Com, Alcatel, Arris, AudioCodes, Cisco Systems, Ericsson, General Bandwidth, LG Electronics, Mitel, Motorola, Netgear, Nortel Networks, Quintum Technologies, Siemens, Sonus Networks and VTech.

"Over the past seven years we have had a close relationship with TI, and their ability to incorporate our requirements into their cutting -edge software and silicon technology has been key in supporting Quintum's competitiveness in the market, particularly with our award winning TENOR line of VoIP MultiPath switches and gateways", said Cheng Chen, CEO of Quintum Technologies. "As an industry leader in VoIP technology, TI has enabled us to deliver the highest quality and most efficiently designed VoIP access products to our customers. We look forward to our continued mutual success."

In the course of its ten year history in VoIP and extensive engagement with customers, TI has set the standard in many areas of packet telephony development. Among its many milestones, TI was among the first VoIP software and silicon providers to:

- demonstrate the industry's first complete DSP hardware and software solution for IP phones

- receive CableLabs certification for PacketCable 1.0 Voice over Cable embedded media terminal adapter applications

- implement the AES encryption standard on a DSP

- reach the mark of over 100 million VoIP ports shipped

- drive the implementation of T.38 fax in the industry

- offer VoIP developers an opportunity to participate in a thriving third party network

"TI is one of the only semiconductor vendor that integrates VoIP with broadband, wireless & consumer technologies to provide complete, high -quality solutions to system developers seeking field -proven communications products," said Bill Simmelink, general manager of TI's packet voice and video business unit. "We are on track to realize our vision of delivering the benefits of broadband telephony to millions of businesses and consumers, building on our leadership and technology innovations in VoIP."

Texas Instruments Broadband Solutions

For OEMs developing broadband communications solutions, TI's advanced signal processing -based silicon and software platforms deliver the optimal performance, lower power consumption, and system -level integration required to rapidly deploy differentiated next -generation products for cable modems, digital subscriber line (xDSL) modems, integrated access devices (IADs), Voice over Internet Protocol (VoIP) gateways, carrier infrastructure, and home and office wireless networking. See www.ti.com/broadband.

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