Texas Instruments to Acquire GO DSP Corporation

Acquisition Expands TI's Extensive DSP Software Offering

(December 18, 1997) -- Texas Instruments Incorporated (NYSE: TXN) today announced that it has entered into an agreement to purchase GO DSP Corporation, a leading provider of digital signal processing (DSP) software tools. This acquisition helps TI further expand its extensive software offering to provide customers with more complete digital signal processing solutions. Terms of the agreement were undisclosed.

GO DSP, headquartered in Toronto, Canada, is a privately held company that specializes in advanced, fully integrated software tools, which allow DSP system developers to improve productivity and reduce time to market. The company is an industry leader with the only fully integrated programming environment with a graphical user interface. This technology complements TI's strong DSP performance and extends its ease-of-use advantage.

Digital signal processors are powerful, specialized semiconductors that are ideal for very fast, math-intensive computing. Used in a variety of electronic end equipment like cellular phones, modems and hard disk drives, the DSP market is projected to grow at a compounded annual growth rate of about 35 percent per year over the next five years, according to market research firm Forward Concepts.

"As the products of the future become more sophisticated, software within a DSP system takes on a greater significance and makes the expertise we're getting with GO DSP invaluable," said Mike Hames, SC vice president and worldwide manager of DSP. "This puts in place additional capabilities to make it easier for our third-party network and customers to develop the multitude of emerging DSP applications."

"We have had a successful working relationship with TI since our inception," said Greg Da Silva, president, CEO and one of the founders of GO DSP. "Our joining forces as one company will give us a substantial lead in establishing a framework for building software applications for DSPs."

GO DSP's products include Code Composer™ and Code Explorer. The company was established in 1994 and employs 15 full-time professionals. GO DSP will remain in Canada and will become a wholly-owned subsidiary of Texas Instruments.

TI has made a number of strategic investments in support of digital signal processing solutions. Acquisitions have included SSi, Tartan and Intersect Technologies, which brought TI additional expertise in the areas of hard-disk drives/mass storage and DSP software tools. Recently, TI announced a $100 million venture fund to seed new markets related to digital signal processing, and $25 million for additional university research in DSP. Last September, TI formally opened a $150 million research and development center in Dallas that will serve as the technology base for the ongoing creation of leading-edge digital signal processing solutions.