Top 10 Digital Camera Manufacturers Integrate TI's Signal Processing Technology to Meet the Demands of an Explosive Market

DALLAS (July 28, 2003) - Texas Instruments Incorporated (TI) (NYSE:TXN) today announced that it has secured the majority of the industry's top 10 digital consumer point-and-shoot camera manufacturers as customers for its signal processing products. Of these OEMs, over 70 percent use TI analog products, while 50 percent have integrated the company's digital signal processor (DSP)-based digital media platform into their product architecture. Industry analyst firm IDC lists the top OEMs as Canon, Fuji Film, Hewlett-Packard, Kodak, Nikon, Olympus, Panasonic, Samsung, Sony and Toshiba.

In addition, TI released its first quarter 2003 marketshare numbers, indicating that its Digital Camera Solutions group has doubled its marketshare by penetrating the traditional application specific integrated circuit (ASIC) market. Since the announcement of its first generation, DSP-based digital media products in 2000, TI has shipped over 10 million units and projects that this number will increase to more than 20 million by the end of the year. The company has also secured customer commitments from its existing, as well as new, customer base for its next generation signal processing products to be released in 2004.

"The worldwide digital still camera market grew 65 percent in 2002, proving it to be one of the strongest categories in the consumer electronics industry," said Chris Chute, senior research analyst, Digital Imaging Solutions and Services, IDC, "IDC expects that digital camera shipments will continue to experience strong growth over the next five years. TI has positioned itself well to remain an important part of the digital camera value chain."

Focused Investment Makes Cameras Better
Traditionally, consumer electronics OEMs -- including digital camera manufacturers -- relied on ASIC technology to provide differentiation and benefits to their products. Camera OEM�s find they can get to market faster, and further differentiate products, by implementing their intellectual property (IP) in software rather than in the traditional ASIC hardware.

"Camera OEMs are under pressure to launch new product lines that satisfy the needs of their multiple target markets, as well as sharpen and increase the image quality and performance of the devices," said Dave Pahl, business manager for TI's Digital Camera Solutions group. "In order to meet such consumer demands, TI's programmable solution provides manufacturers the required reduction in production time and lowers costs needed to develop next generation products that support multiple platforms, thus eliminating the need for hard-wired ASICs."

The programmable DSP platform product family includes the TMS320DM310, TMS320DM270, TMS320DSC25, TMS320DSC24 and TMS320DSC21. (See http://www.ti.com/sc/digitalcamera/ .)

The Complete Picture
TI is uniquely positioned to supply a variety of key semiconductor products necessary for the rapidly changing digital camera market. TI can leverage competencies it has learned in other fast growing consumer markets such as wireless and broadband, including fast product ramps, analog integration and software infrastructure. In addition, TI rounds out its digital media offerings as a complete solution with the addition of its analog components and software solutions.

Product Information
For specific information regarding TI�s digital media platforms, please visit www.ti.com/sc03158 .