Monday, March 5, 2007

PRESS RELEASE: DLP HDTV Continues Market Leading Momentum into 2007

New Slim Form Factor Models, Consumer Demand for Full High Definition 1080p Resolution and Competitive Pricing Drove Increased Market share in 2006

DALLAS, March 1 /PRNewswire-FirstCall/ -- DLP(R) HDTVs, based on technology developed by Texas Instruments (TI) (NYSE: TXN), ranked number one in all 1080p HDTV sales for 2006 within the microdisplay category, according to data from leading U.S. consumer and retail information company, The NPD Group. Indicators point to another strong year for DLP with January 2007 statistics reporting DLP HDTVs leading with double the sales of 1080p over the nearest competitor in the same segment.

DLP's overall units sold in the highly competitive 50 inch and above HDTV arena experienced a year over year growth of 63% from December 2005 to December 2006, according to NPD's retail tracking service. This performance cemented DLP's position as the leader in the microdisplay category and advanced its position in the HDTV market overall.

In 2006, DLP sold more HDTVs at a screen size of 50 inch and greater than any other competing technology in the U.S. including plasma with 28.9% market share in units, according to NPD. In the HDTV 40-49 inch screen size space, DLP retained its advantage over other technologies by dominating in price per square inch. DLP led in sales of 1080p resolution microdisplay models in the U.S. during December, with 61.6% market share in units. More
than one quarter of all 1080p HDTV sales in the month of December were DLP models (27% overall market share in units). Total unit sales of 1080p with all technologies increased year over year by an increase of almost seven times from December 2005 to December 2006, demonstrating growing consumer demand.

DLP's growth was driven by several factors including Samsung's introduction of slim cabinet models in October 2006; increased consumer demand for full high definition 1080p resolution; and competitive price points. The 2007 DLP HDTVs from Samsung include a complete line-up of slim DLP HDTV offerings and great cabinet styling, with other leading manufacturers also expected to introduce slim models in the future. Slim DLP HDTVs provide a bigger screen in a smaller space than competing technologies while offering the thinnest free standing display at their screen size, at approximately half the weight of plasma TVs. The new slim form factor expands display options to include easy shelf mounting.

TI DLP Products expanded its collaborative marketing efforts with manufacturing customers in 2006, which when combined with the DLP national advertising campaign, resulted in achieving the highest awareness scores experienced by DLP among potential HDTV buyers. Marketing and advertising efforts included television campaigns, a major sponsorship with NASCAR and
retail programs.

"We're extremely pleased by the progress DLP has made during the past year and see further growth in 2007, thanks in large part to the innovations of our customers and our supporting brand and marketing efforts," said Adam Kunzman, business manager, DLP HDTV Products, Texas Instruments. "We expect to see a tenfold increase in the number of slim form factor models offered to consumers by DLP customers in 2007, which will continue to be a stabilizing force for DLP in the 40-49 inch space. This expansion of DLP product lines and innovations such as solid state LED illumination, combined with the increasing demand for 1080p quality, provide a great environment for DLP market share to grow."

"DLP was successful in claiming a significant amount of market share in 2006, particularly in the larger screen sizes, 50 inches and above" said Stephen Baker, vice president, industry analysis, The NPD Group. "Even during the holiday season when the so-called 'flat-screen war' was at its
peak for the year, DLP proved to be a viable contender against not only other microdisplays, but also against plasma and LCD."