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HOUSTON (Nov. 27, 2000) -- In less than a year and a half in the cable modem business, Texas Instruments Incorporated (TI) (NYSE: TXN) has garnered 30 percent of the market for data over cable service interface specification (DOCSIS) chips. TI estimates it will deliver three million of the nearly 10 million total units expected to ship this year, increasing TI¡¦s market share by 600 percent from 1999.

Gartner Dataquest projects continued high growth in worldwide cable modem shipments during the next five years, with the potential to reach annual shipments of nearly 30 million units by the end of 2004, according to Patti Reali, senior analyst for Dataquest.
North America will start to shift away from worldwide standalone cable modem units as the market shifts to integrated broadband access and voice devices, Reali said. Additionally, Dataquest forecasts strong regional growth in Asia Pacific countries, including Japan, Korea and Taiwan, as well as selected Latin American countries.

"As the focus of the cable market shifts from high-speed data-only delivery to next-generation digital services such as voice and video, TI is uniquely positioned to realize even greater gains in market presence. TI already is the leader in voice-enabled cable modem technology with DOCSIS 1.1-ready hardware and software, industry-leading Telogy Software products and the world's most popular digital signal processors (DSP). As the market grows, TI is equipped to grow with it.

"Toshiba Corp. also has increased its share in the cable modem market in 2000," said Naotake Kurotsu, general manager of Toshiba's computer network platform division. "We appreciate TI's participation in our cable modem product development and we opted for TI because they share our commitment to deliver the high-performance, high-quality technology that is easily upgradeable as the market and our needs change."

"TI recently unveiled its newest voice-enabled cable modem solution. By building upon its industry-leading voice technology, TI has enabled cable operators to provide bundled services across all market segments such as primary line telephony for residential gateways, secondary line telephony for voice enabled cable modems, and multi-line offerings for multi-dwelling units (MDUs).

"TI's DSP and software combination provides the technology required for real-time operations to enable digital voice and video services," said Eric Dewannain, general manager of TI's cable broadband communications business unit. "The market for next-generation services is ready to explode and TI is at the forefront of the technology vendors who will make it happen.

SAFE HARBOR STATEMENT: Statements contained in this press release regarding market growth for cable modem and TI's expected presence and gains in that market and other statements of management's beliefs, goals and expectations may be considered "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Statements regarding growth in the overall cable modem market are based on projections provided by Gartner Dataquest, an independent market analyst. The following factors and the factors discussed in TI's most recent Form 10-K could cause actual results to differ materially from the statements contained in this press release: the introduction of new and competitive technologies; TI's ability to meet manufacturing capacity demands; changes in customer intentions or preferences and other factors affecting market growth or sales. We disclaim any intention or obligation to update any forward-looking statements as a result of development occurring after the date of this press release.

Texas Instruments Incorporated is the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age. The company's businesses also include sensors and controls, and educational and productivity solutions. TI is headquartered in Dallas, Texas and has manufacturing 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


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