NATIONAL SEMICONDUCTOR CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
    (In millions)
                                                     Twelve Months Ended
                                                     -------------------
                                                   May 31,         May 25,
                                                     2009            2008
                                                     ----            ----
    Cash flows from operating activities:
    Net income                                       $73.3          $332.3
    Adjustments to reconcile net income with
     net cash provided by operating activities:
         Depreciation and amortization               119.8           132.7
         Share-based compensation                     70.9            89.7
         Excess tax benefit from share-based
          payment arrangements                        (5.0)          (17.0)
         Tax benefit associated with stock options     8.1            27.6
         Loss on investments                           7.3             6.0
         Loss on disposal of equipment                 0.4             3.3
         Impairment of equipment and other assets     52.7               -
         Non-cash restructuring (recovery) expense    (2.0)            3.0
         Gain on sale of manufacturing plant
          assets                                         -            (3.1)
         In-process research and development
          charge                                       2.9               -
         Other, net                                    0.7             4.0
    Changes in certain assets and liabilities, net:
         Receivables                                  65.2            13.3
         Inventories                                  13.5            27.1
         Other current assets                          2.9            23.3
         Accounts payable and accrued expenses       (36.5)           46.0
         Current and deferred income taxes            12.7           (13.3)
         Other non-current liabilities               (26.1)          (30.6)
                                                     -----           -----
    Net cash provided by operating activities        360.8           644.3
                                                     -----           -----
         Cash flows from investing activities:
         Purchase of property, plant and
          equipment                                  (83.7)         (111.3)
         Business acquisition, net of cash
          acquired                                            (4.5)                            -
                  Proceeds  from  sale  of  property,  plant,
                    and  equipment                                                                1.1                        16.6
                  Proceeds  from  sale  of  investments                          0.4                          0.2
                  Funding  of  benefit  plan                                            (6.4)                      (5.4)
                  Redemption  and  net  realized  losses
                    (gains)  of  benefit  plan                                          11.6                        (0.2)
                  Other,  net                                                                      (0.2)                      (1.9)
                                                                                                            ----                        ----
        Net  cash  used  in  investing  activities                        (81.7)                  (102.0)
                                                                                                          -----                    ------
        Cash  flows  from  financing  activities:
                  Proceeds  from  unsecured  senior  notes,
                    net  of  issuance  costs                                                    -                      992.9
                  Proceeds  from  bank  borrowings,  net  of
                    issuance  costs                                                                  -                  1,996.5
                  Repayment  of  bank  borrowing                                (187.6)              (1,546.8)
                  Payment  on  software  license  obligations                  -                        (8.7)
                  Excess  tax  benefit  from  share-based
                    payment  arrangements                                                  5.0                        17.0
                  Minimum  tax  withholding  paid  on  behalf
                    of  employees  for  net  share  settlements            (0.4)                    (14.6)
                  Issuance  of  common  stock                                          60.2                      103.7
                  Purchase  and  retirement  of  treasury
                    stock                                                                          (128.4)              (2,123.5)
                  Cash  dividends  declared  and  paid                        (64.4)                    (50.6)
                                                                                                          -----                      -----
        Net  cash  used  in  financing  activities                      (315.6)                  (634.1)
                                                                                                        ------                    ------
        Net  change  in  cash  and  cash  equivalents                    (36.5)                    (91.8)
        Cash  and  cash  equivalents  at  beginning
          of  the  year                                                                          736.8                      828.6
                                                                                                          -----                      -----
        Cash  and  cash  equivalents  at  end  of  the  year        $700.3                    $736.8
                                                                                                        ======                    ======