National Reports Earnings for Second Quarter Fiscal 2005            Exhibit 99.1


News Media:                                    Financial:
Jeff Weir                                      Jennifer Stratiff
National Semiconductor                         National Semiconductor
(408) 721-5199 or (408) 242-4827               (408) 721-5007
jeff.weir@nsc.com                              invest.group@nsc.com

National Semiconductor Streamlines  Manufacturing  Operations,  Cuts Expenses to
Align with Business Model

     o Company Can Optimize Analog Business Model with Leaner  Infrastructure
     o 550 Positions Affected Worldwide, with Majority Coming from Factories

SANTA  CLARA,  CALIF.,  January  6, 2005 -  National  Semiconductor  Corporation
(NYSE:NSM)  today  initiated  a global  program to reduce  expenses,  streamline
manufacturing  operations  in line with the current  utilization  of  National's
factories,  and adjust  factory  levels  required to support its ongoing  higher
value-added analog business model.  These actions will affect  approximately 550
people,  most of whom work in  National's  manufacturing  plants  in the  United
States,  Europe and Asia. As a result of these actions,  the company  expects to
incur approximately  $22-$26 million of severance and related expenses,  most of
which will be recorded in the third quarter of fiscal 2005.

National's capacity  utilization  percentage in its wafer fabrication plants ran
in the mid-90s for most of fiscal 2004.  However,  during National's fiscal 2005
second quarter,  which started August 30, 2004, the company's wafer  fabrication
utilization  rates  declined  to  the  mid-60s  due  to  significant   inventory
reductions  in the  distribution  channel and lower demand than expected in some
markets. In addition, as the company continues to strategically de-emphasize its
lower  margin and  commodity  businesses,  more of the  company's  manufacturing
capacity becomes available for higher margin Analog products.

"These  actions  reflect  our  continuing  focus on  higher  value-added  Analog
products  and our  de-emphasis  on  commodity  products,"  said Brian L.  Halla,
National's  chairman,  president  and CEO. "We will, of course,  make  available
excellent outplacement support,  financial advice and counseling to all affected
employees."



In  addition  to  adjusting  personnel  levels  in its  factories,  National  is
eliminating  approximately  100 positions from several product lines and support
functions at various sites, including National's corporate headquarters in Santa
Clara. In total, the personnel reductions will lower National's global workforce
by approximately 6 percent.

National's  third  quarter  financial   announcement  and  conference  call  are
scheduled  for March 10, 2005, at which time the company will discuss Q3 results
as well as the impact of these actions on the company's costs going forward.

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 quarter,  the
degree of factory  utilization,  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 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,  communication interface products and
data conversion  solutions.  National's key markets include  wireless  handsets,
displays,  PCs and laptops. The company's analog products are also optimized for
numerous  applications in a variety of electronics  markets,  including medical,
automotive, industrial, and test and measurement.  Headquartered 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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