BENCHMARQ Expects Slight Decline in Revenues Due to Lower NVSRAM Sales.

DALLAS--(BUSINESS WIRE)--Sept. 25, 1997--BENCHMARQ Microelectronics, Inc. (Nasdaq:BMRQ), a Dallas, Texas-based provider of integrated circuits and electronic modules for portable and power sensitive electronic systems, announced today that Company revenues and earnings, respectively, for the quarter ending Sept. 30, 1997 are anticipated to be about 10% below second quarter 1997 results primarily due to slowed sales of NVSRAM products.

However, the Company noted that it expects revenues from sales of its strategic Battery Management product line to be up sequentially and on a year-over-year basis in the third quarter of 1997.

The Company entered the third quarter of 1997 with a lower backlog of orders for its nonvolatile products (NVSRAM and Real-Time Clock products) than in the previous quarter. Consequently, this part of the Company's business was very dependent upon "turns" orders (orders that are received and shipped within the same quarter). Sales of the Company's NVSRAM products to its telecommunications customers, which are seasonally soft in July and August, have not improved to anticipated levels in September. The lower than expected "turns" are believed to result from temporary demand issues. The Company cautioned that since the quarter has not concluded, final results may differ from current expectations.

The statements contained in this press release relating to sales, revenues, earnings, backlog and demand constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and various factors may impact upon such statements, including, without limitation, (i) certain of the risks detailed from time-to-time in the Company's filings with the SEC, including, without limitation, its: prospectus, dated Dec. 1, 1995, as supplemented on Dec. 21, 1995; Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1996 and; Quarterly Report on Form 10-Q for the six months ended June 30, 1997; (ii) inability to achieve required production quantities in mix, (iii) cancellation of orders by customers, (iv) changes in demand for the Company's products, (v) changes in pricing for the Company's products, (vi) expenses related to legal disputes and adverse legal rulings in such disputes, (vii) inability of the Company to manage its effective tax rate, (viii) obsolescence of the Company's products, (ix) returns of the Company's products by customers, and (x) costs associated with the production of the Company's products. Statements contained herein are made as of the date hereof and the Company assumes no responsibility for updating such information. -0-

Note to Editors: BENCHMARQ is a registered trademark of BENCHMARQ Microelectronics, Inc.

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