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Corporate Facts

Corporate Overview
Dallas Semiconductor Corporation designs, manufactures, and markets electronic chips and chip-based subsystems. Founded in 1984, the Company uses customer problems as an entry point to develop products with widespread applications. The Company is committed to new product development as a means to increase future revenues and to diversify its markets, products, and customers.

Advanced technologies have given the Company a competitive edge over traditional approaches to semiconductors. Combining lithium energy cells with low-power CMOS ICs powers the chips for the useful life of the equipment. Direct laser writing enhances chip capabilities with high levels of precision and unique identities. Special packaging gives improved functionality to silicon chips.

In its 14-year history, Dallas Semiconductor has developed 311 proprietary base products with over 2,000 variations shipped to more than 15,000 customers worldwide. A direct sales force and distribution network sell to original equipment manufacturers (OEMs) of personal computers and workstations, scientific and medical equipment, industrial controls, automatic identification, telecommunications, consumer electronics, and other markets.

Sales for 1997 totaled $368 million. Dallas Semiconductor has 1,800 employees. On March 19, 1990, the Company started trading on the New York Stock Exchange under the symbol DS.

Technology
Dallas Semiconductor's special technologies make possible Soft Silicon™ solutions—dynamic, flexible, chip-based products that can be molded in the final manufacturing stages or during use. Soft Silicon is made possible by lithium energy and direct laser writing.

Lithium
Using micro energy management techniques, Dallas Semiconductor has reduced power requirements to the point where a miniature lithium energy source powers products for the useful life of the equipment. Chips are made virtually crashproof with minimum current design techniques and special freshness seals that keep lithium cells from expending any energy until power is applied for the first time. Through these technologies, Dallas products remember data throughout their operating life and can accept change.

Laser
Direct laser writing makes each chip unique at low cost. A sub-micron positioning laser and control software developed at Dallas can engrave individual chips with digital patterns. This ability to routinely alter, reconfigure, or program individual chips after completion of wafer fabrication broadens the application base of products having similar design. Direct laser writing allows Dallas Semiconductor to develop highly accurate products for applications where precision is paramount.

As a results of these Late Definition technologies, exact chip definition can be left to the OEM. Certain chips can even be defined and redefined by the end system itself.

Manufacturing and Facilities
In March 1987, the Company began production at its advanced wafer fabrication facility, in which it produces high-performance CMOS integrated circuits with sub-micron geometries. This facility processes six-inch wafers and utilizes an automated modular process technology that provides substantial flexibility in the manufacturing process and significantly reduces the number of persons required for operation. Physical expansion of this facility was completed in 1989 and an additional wafer fabrication facility was completed in 1994. Additional equipment is installed from time to time to support higher production volumes or advanced processing needs. In September of 1998, the Company opened a new $10 million facility to produce its proprietary 1-Wire™ products in a minimal package no bigger than the chip itself.