DALLAS (Jan. 25, 2005) – Texas Instruments Incorporated (TI) (NYSE:TXN) today announced that its Board of Directors has authorized the company to repurchase an additional $2 billion of its common stock. This is the second large repurchase program the company has announced in the past 6 months.

“TI’s leadership in high-growth markets gives the company its strongest balance sheet in history and positions us for continued growth. This success enables us to return increased value to our shareholders,” said Rich Templeton, TI’s president and chief executive officer.

When combined with other previously announced buyback plans, the total outstanding share repurchase authorization is now about $3 billion. In 2004, the company repurchased $753 million of TI common stock, compared with $284 million in 2003.

TI plans to repurchase shares at times and prices considered appropriate by the company. The company had 1,718.1 million shares outstanding at the end of the 2004.

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“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this release that describe the company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of the company or its management:

• Market demand for semiconductors, particularly for analog chips and digital signal processors in key markets, such as telecommunications and computers;
• TI’s ability to maintain or improve profit margins, including its ability to utilize its manufacturing facilities at sufficient levels to cover its fixed operating costs, in an intensely competitive and cyclical industry;
• TI’s ability to develop, manufacture and market innovative products in a rapidly changing technological environment;
• TI’s ability to compete in products and prices in an intensely competitive industry;
• Losses or curtailments of purchases from key customers;
• The timing and amount of distributor and other customer inventory adjustments;
• The financial impact of inadequate or excess TI inventories to meet demand that differs from projections;
• TI’s ability to maintain and enforce a strong intellectual property portfolio and obtain needed licenses from third parties;
• Consolidation of TI’s patent licensees and market conditions reducing royalty payments to TI;
• Economic, social and political conditions in the countries in which TI, its customers or its suppliers operate, including security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates;
• Natural events such as severe weather and earthquakes in the locations in which TI, its customers or its suppliers operate;
• Availability and cost of raw materials and critical manufacturing equipment;
• Changes in the tax rate applicable to TI as a result of changes in tax law, the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets;
• TI’s ability to recruit and retain skilled personnel; and
• Timely implementation of new manufacturing technologies, installation of manufacturing equipment, and the ability to obtain needed third-party foundry and assembly/test subcontract services.

For a more detailed discussion of these factors, see the text under the heading “Cautionary Statements Regarding Future Results of Operations” in Item 1 of the company’s most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of publication, and the company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.

Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers’ real world signal processing requirements. In addition to Semiconductor, the company’s businesses include Sensors & Controls and Education Technology. 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 www.ti.com.

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