TI Expects Fourth Quarter to be Higher than Previous Estimate

12/10/2003 - In a scheduled update to its business outlook for the fourth quarter of 2003, Texas Instruments Incorporated (NYSE:TXN) revised upward its expected revenue and earnings ranges. TI’s updated estimate reflects continuing strong demand across a broad range of its Semiconductor products.

The company’s expectations for revenue are:

TI expects earnings per share (EPS) between $0.25 and $0.27, including a $0.07 per share contribution from the company’s previously announced sale of 32.3 million shares of Micron Technology, Inc. common stock, compared with the previous range of $0.14 to $0.19. The previous range did not include the effect of the sale of Micron stock.

The effective tax rate for 2003 is now expected to be 25 percent compared with the prior estimate of 24 percent. The effective tax rate excludes the tax impact resulting from the recognition of the previously reserved tax benefit associated with the Micron stock transaction. Reflecting cumulative catch-up tax expenses, the effective tax rate for the fourth quarter is expected to be 26 percent compared with the prior estimate of 24 percent.

The company will hold a conference call at 4:30 p.m. CST today to discuss this update. This conference call will be available live at www.ti.com. TI’s original fourth-quarter outlook was published in the company’s third-quarter 2003 earnings release on October 20, available at www.ti.com. TI’s fourth quarter ends on December 31.

“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 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:

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 Educational & Productivity Solutions. 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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