Exhibit 99.1

News Media:                                    Financial:
Jeff Weir                                      Jennifer Stratiff
National Semiconductor                         National Semiconductor
(408) 721-5199                                 (408) 721-5007
jeff.weir@nsc.com                              invest.group@nsc.com

National Semiconductor Updates Outlook for Second Quarter of Fiscal 2005

SANTA  CLARA,  Calif.,  November  1, 2004 - National  Semiconductor  Corporation
(NYSE:NSM)  today  lowered its revenue  guidance for the second  quarter  ending
November 28, 2004.  National's  new guidance is for second  quarter  revenues to
range from $445 million to $450  million,  down  approximately  18 to 19 percent
sequentially from the first quarter.  National previously guided on September 9,
2004,  during its first quarter  earnings  conference  call, that second quarter
revenues were expected to be down 8 to 10 percent sequentially.

During that conference call in September,  the company  indicated that inventory
and backlog  adjustments  from  distributors and some customers were expected to
continue  through the second  quarter.  The company also  indicated  that the Q2
revenue guidance  assumed there would be some sequential  increase in the amount
of turns orders arising from expected higher seasonal activity.  However,  turns
orders, which are those orders placed for delivery within the same quarter, have
not  improved  so far in Q2.  Distributors  have been more  aggressive  in their
efforts  to reduce  inventories,  especially  in Europe and Asia.  In  addition,
distributor  resale rates of National  Semiconductor  product have not picked up
through October,  which is not typical for the pre-holiday  season.  Demand from
certain  customers in Asia for handset and display  products  has also  remained
weak, due in part to excess supply in those channels.

Gross margin  percentage  under the revised revenue outlook is expected to range
from  49  to  50  percent,   down  moderately  from  the  original  guidance  of
approximately 51 percent.

"Inventory adjustments and  lower-than-typical  seasonality have been the themes
so far this quarter," said Brian L. Halla,  National's  chairman,  president and
CEO. "In the short term, we are making  adjustments right away to our production
volumes and spending plans. As for our longer-term strategy, it is the right one
and it remains the same. We will continue to drive a business model that centers
around higher value,  higher margin analog products that  consistently  generate
higher rates of return for our shareholders."

National's  second  quarter  financial  announcement  and  conference  call  are
scheduled  for  December  9, 2004,  at which time the  company  will  discuss Q2
results in more  detail and also  provide  an outlook  for the third  quarter of
fiscal 2005.

Special Note
This release contains forward-looking  statements dependent on a number of risks
and  uncertainties  pursuant  to the  safe  harbor  provisions  of  the  Private
Securities  Litigation  Reform Act of 1995.  These factors include,  but are not
restricted to, new orders  received and shipped during the second  quarter,  the
degree  of  factory  utilization,  the  successful  start  up of  production  in
National's  Suzhou  assembly  and  test  facility,  the sale of  inventories  at
existing prices,  and the ramp up of recently  introduced  products.  Other risk
factors are included in the Company's  10-K for the year ended May 30, 2004 (see
Outlook and Risk Factors  sections of  Management's  Discussion  and Analysis of
Financial  Conditions  and  Results  of  Operations)  and the 10-Q for the first
quarter ended August 29, 2004.

About National Semiconductor

National  Semiconductor,  the industry's  premier analog  company,  creates high
performance  analog devices and  subsystems.  National's  leading-edge  products
include  power  management  circuits,  display  drivers,  audio and  operational
amplifiers,  and data  conversion  solutions.  National's  key  markets  include
wireless  handsets,  displays,  PCs,  networks  and a broad  range  of  portable
applications.  With headquarters in Santa Clara,  California,  National reported
sales of $1.98  billion for fiscal 2004,  which ended May 30,  2004.  Additional
company and product information is available at www.national.com.

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