For the quarter, the company reported net revenues of $31.9 million, which compares with net revenues of $31.1 million in the prior sequential quarter and $19.2 million in the same quarter a year ago.  The company reported a net loss for the quarter of $23.4 million, or $0.34 per share, on a generally accepted accounting principles (“GAAP”) basis.  This compares with a net loss of $17.2 million, or $0.25 per share in the prior sequential quarter and a net loss of $14.6 million, or $0.24 per share, in the same quarter one year ago.

Non-GAAP Results

Non-GAAP net loss for the quarter was $15.6 million, or $0.22 per share, which includes the impact of a $2.8 million write-off of pre-production inventory.  This compares with a non-GAAP net loss of $11.6 million, or $0.17 per share, in the prior sequential quarter and a non-GAAP net loss of $6.6 million, or $0.11 per share, in the same quarter a year ago.  A detailed reconciliation between GAAP and non-GAAP net loss is provided in a table following the non-GAAP consolidated statements of operations.

Sylvia Summers, Trident’s chief executive officer, said, “Results for the quarter, excluding the disappointing inventory write-off, were in line with our guidance.  With the closing today of our acquisition of the NXP product lines, we are ready to look forward to the opportunities we are creating as a result of this transaction.  We are now a leading provider in both the digital TV and set-top box markets, with a much larger and more diversified revenue and customer base, a broad and powerful patent portfolio, and two-thirds of our employee base in Asia on day one.  We have integration plans, key management, and a vision in place for how we will move ahead as one company from this day forward.  We remain committed to the substantial restructuring and crisp execution that will be required to break even by the end of this year, and we already are aligning product roadmaps and account strategies to win new business for 2011 and beyond.”

Outlook

As previously announced, Trident has changed its fiscal year end to December 31.  For its new fiscal first quarter ending Mar. 31, 2010, which will include approximately eight weeks of operating results for the newly acquired product lines, Trident is providing the following outlook.  The company’s outlook for any period is based on current expectations and is subject to various factors, including those set forth in the Forward-Looking Information statement below. Actual results may differ materially.

• Quarter ending Mar. 31, 2010:
  • ­Net revenues are expected to be in the range of $85 million to $90 million.­    Non-GAAP gross margins are expected to be in the range of 21% to 24%.
  • ­Non-GAAP operating expenses are expected to be in the range of $57 million to $60 million, with research and development expenses in the range of $38 million to $40 million and selling, general and administrative expenses of approximately $19 to $20 million.
  • ­Non-GAAP operating loss is expected to be in the range of $36 million to $40 million.
  • ­Provision for income taxes is expected to be approximately $1.0 million.
  • ­The company expects to restructure its operations over the next several quarters, and anticipates that it will incur $1 to $2 million of related restructuring charges in the fiscal first quarter.  These charges are not included in the guidance for non-GAAP operating loss.
  • ­Cash as of the end of the quarter is expected to be in the range of $120 million to $130 million.

Because the fiscal second quarter ending June 30, 2010 will be the first quarter reflecting the full impact of the acquired product lines, the company also provided updated guidance for that quarter.

• Quarter ending June 30, 2010:
  • ­Net revenues are expected to be in the range of $140 million to $160 million.
  • ­Non-GAAP gross margins are expected to be in the range of 23% to 26%.
  • ­Non-GAAP operating expenses are expected to be in the range of $65 million to $68 million, with research and development expenses in the range of $44 million to $46 million and selling, general and administrative expenses of approximately $21 to $22 million.
  • ­Non-GAAP operating loss is expected to be in the range of $23 million to $27 million.
  • ­Provision for income taxes is expected to be approximately $1 million.
  • ­Restructuring charges are expected to be in the range of $18 million to $22 million.  These charges are not included in the guidance for non-GAAP operating loss.
  • Cash as of the end of the quarter is expected to be in the range of $90 million to $100 million.

Investor Conference Call

Management will host a conference call at 2:00 pm Pacific Time today.  The domestic dial in is 866-202-3048; the international dial-in is 617-213-8843.  Passcode: 96447383.  A replay of the conference call will be available for two weeks and will be accessible by calling 888-286-8010 (domestic) or 617-801-6888 (international) using access code 75194851.  This call is being webcast by Thomson/CCBN and can be accessed at Trident’s web site at: http://www.tridentmicro.com.  The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com; institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

Use of Non-GAAP Financial Information

To supplement the consolidated financial results prepared under GAAP, Trident uses a non-GAAP conforming, or non-GAAP, measure of net loss that is GAAP net loss adjusted to exclude certain costs, expenses and gains. Non-GAAP net loss gives an indication of Trident’s baseline performance before gains, losses or other charges that are considered by management to be outside the company’s core operating results. In addition, non-GAAP net loss is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. Trident computes non-GAAP net loss by adjusting GAAP net loss for acquisition-related expenses, stock-based compensation expense, expenses related to the stock option investigation and related matters, restructuring charges, expenses related to software license fees adjustment, amortization and impairment of intangible assets from acquisitions, impairment loss, backlog amortization, capital gains and losses and dividend income.  A detailed reconciliation between net loss on a GAAP basis and non-GAAP net loss is provided in a table following non-GAAP Consolidated Statements of Operations.

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding financial expectations for the first and second quarters of fiscal year 2010, expected restructuring activity, and our ability to breakeven by the end of 2010. The forward-looking statements made above are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, our ability to realize the benefits from our acquisition of product lines from NXP, our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident’s products, and competitive pressures, including pricing and competitors’ new product introductions, the impact of the uncertain global macroeconomic environment, the increasingly competitive DTV market and our ability to retain key employees. Additional factors that may affect Trident’s business are described in detail in Trident’s filings with the Securities and Exchange Commission available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Trident has been making bold moves to expand its market, deepen and more fully leverage its Intellectual Property (IP) portfolio, and drive the evolution of the “connected home.” Its acquisition of NXP Semiconductors’ set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

NOTE: Trident is a trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

TRID-IR

For More Information

John Swenson
Director, Corporate Finance & Investor Relations
Tel:  408-764-8899
Email:  john.swenson@tridentmicro.com
Web site: http://www.tridentmicro.com

                            TRIDENT MICROSYSTEMS, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)

                                                   December 31,  September 30,
    (In thousands)                                      2009           2009
                                                        ----           ----

    ASSETS
    Current assets
      Cash and cash equivalents                       $147,995       $160,955
      Accounts receivable, net                           4,917         17,789
      Inventories                                       14,536         10,611
      Prepaid expenses and other current assets         13,627         11,047
                                                        ------         ------

        Total current assets                           181,075        200,402

    Property and equipment, net                         26,168         26,696
    Intangible assets, net                               5,635          6,660
    Goodwill                                             7,851          7,848
    Other assets                                         7,764          9,312

                                                      --------       --------
        Total assets                                  $228,493       $250,918
                                                      ========       ========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
      Accounts payable                                 $18,883        $13,060
      Accrued  expenses and other current
       liabilities                                      29,469         24,993
      Income taxes payable                               1,696         13,511
                                                         -----         ------

        Total current liabilities                       50,048         51,564
    Long-term income taxes payable                      22,262         22,098
    Deferred income tax liabilities                         94             81

                                                        ------         ------
        Total liabilities                               72,404         73,743
                                                        ------         ------

    Stockholders' equity
      Capital stock                                    237,898        235,613
      (Accumulated deficit)                            (81,809)       (58,438)
                                                       -------        -------

        Total stockholders' equity                     156,089        177,175

                                                      --------       --------
        Total liabilities and stockholders'
         equity                                       $228,493       $250,918
                                                      ========       ========

                            TRIDENT MICROSYSTEMS, INC.
                       CONDENSED CONSOLIDATED STATEMENTS OF
                                    OPERATIONS
                                   (Unaudited)

                             Three Months Ended          Six Months Ended
                             ------------------          ----------------
    (In thousands,     December  September   December   December   December
     except per           31,        30,        31,        31,        31,
     share data)         2009       2009       2008       2009       2008
                         ----       ----       ----       ----       ----
    Net revenues       $31,918    $31,093    $19,215    $63,011    $53,997
    Cost of
     revenues           26,673     20,592     13,045     47,265     35,752
                        ------     ------     ------     ------     ------
    Gross profit         5,245     10,501      6,170     15,746     18,245
    % of net
     revenues             16.4%      33.8%      32.1%      25.0%      33.8%
    Research and
     development
     expenses           16,162     16,350     12,715     32,512     25,780
    % of net
     revenues             50.6%      52.6%      66.2%      51.6%      47.7%
    Selling,
     general and
     administrative
      expenses          11,143      8,837      8,465     19,980     18,570
    % of net
     revenues             34.9%      28.4%      44.1%      31.7%      34.4%
    Restructuring
     charges                50      1,508        761      1,558        761
    % of net
     revenues               .2%       4.8%       4.0%       2.5%       1.4%
                            --        ---        ---        ---        ---
    Operating loss     (22,110)   (16,194)   (15,771)   (38,304)   (26,866)
    % of net
     revenues            (69.3)%    (52.1)%    (82.1)%    (60.8)%    (49.8)%
    Loss on
     investment in /
      dividend
     income from
     UMC stock               -          -          -          -     (8,187)
    Interest and
     other income
     (expense), net       (561)      (533)     2,057     (1,094)     5,231
                          ----       ----      -----     ------      -----
    Loss before
     income taxes      (22,671)   (16,727)   (13,714)   (39,398)   (29,822)
    % of net
     revenues            (71.0)%    (53.8)%    (71.4)%    (62.5)%    (55.2)%
    Provision for
     (benefit from)
     income taxes          700        429        870      1,129      2,731
    % of net
     revenues              2.2%       1.4%       4.5%       1.8%       5.1%
                           ---        ---        ---        ---        ---
    Net loss          $(23,371)  $(17,156)  $(14,584)  $(40,527)  $(32,553)
                      ========   ========   ========   ========   ========
    % of net
     revenues            (73.2)%    (55.2)%    (75.9)%    (64.3)%    (60.3)%

    Basic and
     diluted net
     loss per share     $(0.34)    $(0.25)    $(0.24)    $(0.58)    $(0.53)
    Shares used in
     basic and
    diluted per
     share
     computation        69,506     69,237     61,612     69,372     61,382

                            TRIDENT MICROSYSTEMS, INC.
                   NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF
                                    OPERATIONS
                                   (Unaudited)

                                   Three Months Ended       Six Months Ended
                                   ------------------       ----------------
    (In thousands,           December  September  December  December December
     except per share           31,        30,       31,       31,      31,
     data)                     2009       2009      2008      2009     2008
                               ----       ----      ----      ----     ----
    Net revenues             $31,918    $31,093   $19,215   $63,011   53,997
    Cost of revenues          25,579     19,614    11,835    45,193   32,479
                              ------     ------    ------    ------   ------
    Gross profit               6,339     11,479     7,380    17,818   21,518
    % of net revenues           19.9%      36.9%     38.4%     28.3%    39.9%
    Research and
     development
     expenses                 15,217     15,631    10,169    30,848   21,890
    % of net revenues           47.7%      50.3%     52.9%     49.0%    40.5%
    Selling, general and
     administrative expenses   5,437      6,444     5,199    11,881   12,170
    % of net revenues           17.0%      20.7%     27.1%     18.9%    22.5%
                                ----       ----      ----      ----     ----
    Operating loss           (14,315)   (10,596)   (7,988)  (24,911)  12,542)
    % of net revenues          (44.8)%    (34.1)%   (41.6)%   (39.5)%  (23.2)%
    Interest and other
     income (expense), net      (561)      (533)    2,230    (1,094)   5,346
                                ----       ----     -----    ------    -----
    Loss before income taxes (14,876)   (11,129)   (5,758)  (26,005)  (7,196)
    % of net revenues          (46.6)%    (35.8)%   (30.0)%   (41.3)%  (13.3)%
    Provision for income
     taxes                       700        429       870     1,129    2,731
    % of net revenues            2.2%       1.4%      4.5%      1.8%     5.1%
                                 ---        ---       ---       ---      ---
    Net loss                 (15,576)   (11,558)   (6,628)  (27,134)  (9,927)
                             =======    =======    ======   =======   ======
                               (48.8)%    (37.2)%   (34.5)%   (43.1)%  (18.4)%

    Basic and diluted
     net loss per share       $(0.22)    $(0.17)   $(0.11)   $(0.39)  $(0.16)
    Shares used in basic and
     diluted per share
     computation              69,506     69,237    61,612    69,372   61,382

                                    TRIDENT MICROSYSTEMS, INC.
                   RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                                          (Unaudited)

                             Three Months Ended             Six Months Ended
                            ------------------             ----------------
    (In thousands,       December   September  December   December   December
     except per share       31,         30,       31,        31,        31,
     data)                 2009        2009      2008       2009       2008
                           ----        ----      ----       ----       ----

    GAAP gross profit    $5,245     $10,501     $6,170    $15,746    $18,245
      Amortization of
       acquisition-
       related
       intangible
       assets (1)           974         975      1,065      1,949      2,171
      Stock-based
       compensation
       expense (2)          120           3        138        123        293
      Impairment of
       goodwill and
       intangible
       assets (3)             -           -          -          -        383
      Restructuring
       Charges                -           -          7          -          7
      Prepaid
       royalties
       adjustment             -           -          -          -        419
                            ---         ---        ---        ---        ---
    Non-GAAP gross
     profit              $6,339     $11,479     $7,380    $17,818    $21,518
                         ======     =======     ======    =======    =======

    GAAP Research
     and development
     expenses           $16,162     $16,350    $12,715    $32,512    $25,780
      Stock-based
       compensation
       expense (2)          945         719      2,736      1,664      4,489
      Software license
       fees (4)               -           -       (190)         -       (599)
                            ---         ---       ----        ---       ----
    Non-GAAP
     Research and
     development
     expenses           $15,217     $15,631    $10,169    $30,848    $21,890
                        =======     =======    =======    =======    =======

    GAAP Selling,
     general and
     administrative
     expenses           $11,143      $8,837     $8,465    $19,980    $18,570
      Amortization of
       acquisition-
       related
       intangible
       assets (1)            51          51        134        102        271
      Stock-based
       compensation
       expense (2)        1,146         521      1,054      1,667      1,828
      Impairment of
       goodwill and
       intangible
       assets (3)             -           -          -          -          4
      Stock options
       related
       professional
       fees (5)             (66)       (979)     2,078     (1,045)     4,297
      Acquisition-
       related expenses
       (6)                4,575       2,800          -      7,375          -
                          -----       -----        ---      -----        ---
    Non-GAAP
     Selling, general
     and
     administrative
     expenses            $5,437      $6,444     $5,199    $11,881    $12,170
                         ======      ======     ======    =======    =======

    GAAP net loss      $(23,371)   $(17,156)  $(14,584)  $(40,527)  $(32,553)
      Gross profit
       reconciliation     1,094         978      1,210      2,072      3,273
      Research and
       development
       expenses
       reconciliation       945         719      2,546      1,664      3,890
      Selling, general
       and
       administrative
       expenses
       reconciliation     5,706       2,393      3,266      8,099      6,400
      Restructuring
       Charges               50       1,508        761      1,558        761
      Loss of sale of
       UMC stock and
       other (7)              -           -        173          -      8,302
    Non-GAAP net loss  $(15,576)   $(11,558)   $(6,628)  $(27,134)   $(9,927)
                       ========    ========    =======   ========    =======

    GAAP basic and
     diluted net loss
     per share           $(0.34)     $(0.25)    $(0.24)    $(0.58)    $(0.53)
                         ======      ======     ======     ======     ======
    Non-GAAP basic
     and diluted net
     loss per share      $(0.22)     $(0.17)    $(0.11)    $(0.39)    $(0.16)
                         ======      ======     ======     ======     ======
    Shares used in
     basic and
     diluted per
     share
     computation         69,506      69,237     61,612     69,372     61,382
                         ======      ======     ======     ======     ======

    (1) Amortization of acquisition-related intangible assets represents the
        amortization of identifiable intangible assets. Management deemed that
        these acquisition-related charges are not related to Trident's core
        operating performance and it is appropriate to exclude those charges
        from Trident's non-GAAP financial measures, as it enhances the ability
        of investors to compare Trident's period-over-period operating
        results.

    (2) Stock-based compensation expense relates primarily to the equity
        awards such as stock options and restricted stock. This is non-cash
        expense that varies in amount from period to period and is dependent
        on market forces that are often beyond Trident's control. Hence,
        management excludes this item from the non-GAAP financial measures.

    (3) Charges for impairment of goodwill and intangible assets incurred as a
        result of their carrying value exceeding the fair value.  Management
        believes that these charges are not directly associated with the
        Company's core operating performance.

    (4) Software license fees represent an adjustment for prior years'
        software usage.

    (5) Stock options related professional fees are excluded from the
        non-GAAP net loss calculation.  Management believes that these
        professional fees are not related to the Company's ongoing business
        and operating performance of Trident.

    (6) Acquisition-related expenses represent external costs incurred in
        connection with our acquisition, which we generally would not have
        incurred in the normal course of business.

    (7) Management believes that the capital loss on the sale of UMC stock
        and the dividend income received from UMC are not directly related
        to the ongoing business and operating performance of Trident.

If revenue from the newly acquired business lines had been included, Trident estimates that it would have achieved revenue of approximately $500 million in calendar 2009, with approximately 60% attributable to television and 40% to set-top box sales. The combination of Trident’s existing business with NXP’s television systems and set-top box business lines now provides Trident, in which NXP has received a 60% share interest, with an extensive portfolio of consumer IP. This portfolio comprises over 2,000 granted and in-process patents including motion estimation/motion compensation and conditional access as well as advanced 45nm system-on-chip (SoC) technology. The complementary portfolio will enable Trident to offer an extensive range of innovative semiconductor solutions to the digital home entertainment market, which Trident estimates will reach $5 billion in 2010.

“Integrating NXP’s set-top box and digital television business lines with Trident immediately delivers the size and economies of scale needed to lead this market, with the broad product portfolio, IP expertise and operational infrastructure to support growth,” said Sylvia Summers, chief executive officer, Trident Microsystems, Inc.

Both the digital TV and set-top box markets share a significant amount of intellectual property. Through this acquisition, Trident can further accelerate innovation by leveraging an expanded IP portfolio, SoC design expertise, competitive cost structure and deep relationships throughout the TV and set-top box OEM customer base and ecosystem. These attributes will enable Trident to extend its TV leadership position and become a strong challenger to the incumbent leaders in the set-top box business.

“The combination of Trident’s DTV and NXP’s STB and TV lines is an important milestone for both NXP and Trident and also for our customers,” said Rick Clemmer, president and chief executive officer, NXP Semiconductors. “Platforms in the digital home entertainment market are converging, and as a result, our customers value the tremendous innovation that is made possible by combining best-in-class IP for both TV and set-top box products under one roof.“

Trident has undertaken a strategy to expand its applicable markets. In 2009, Trident acquired select product lines from Micronas, designed to strengthen its position in the digital television market. With the acquisition of the NXP set-top box and television lines, Trident has delivered on its promise to enter the set-top box market and is committed to expanding on the strong foothold NXP has established with its customers to become a leader in set-top box.

NXP and Trident intend to now cooperate in the development of complementary end-to-end solutions in other selected high-growth technology areas, including NXP’s silicon tuner product lines. Trident will be fabless and have access to state-of-the-art technology and manufacturing capacity from NXP’s manufacturing facilities, as well as the partner foundries and subcontractors of both companies. As a result of the terms and conditions agreed between the parties, NXP will account for its investment in Trident under the equity method.

Sylvia Summers remains the CEO of Trident. Christos Lagomichos, former EVP of NXP’s Home business unit, is president. Pete Mangan serves as executive vice president and chief financial officer, and Saeid Moshkelani will lead research and development as executive vice president.

Trident now employs approximately 1,700 people worldwide, across 12 countries. Through its network of centers of excellence in North America and Europe, and its extensive engineering resources worldwide, Trident is structured to continue its dedication to customer support for its television and set-top box customers.

About Trident Microsystems:

Trident Microsystems, Inc., with headquarters in Santa Clara, California, is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today’s digital home. Trident has been making bold moves to expand its market, deepen and more fully leverage its Intellectual Property (IP) portfolio, and drive the evolution of the “connected home.” Its acquisition of NXP Semiconductors’ set-top box and television business lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

About NXP Semiconductors:

NXP Semiconductors provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power, Digital Processing and manufacturing expertise. These innovations are used in a wide range of automotive, industrial, consumer, lighting, medical, computing and identification applications. Headquartered in Europe, the company has about 29,000 employees working in more than 30 countries and posted sales of USD 5.4 billion in 2008.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management of Trident concerning the impact of the acquisition by Trident of the television systems and set-top box business lines from NXP, including statements regarding the potential revenue that may be generated from the newly acquired product lines, the potential size of the digital home entertainment market, and the ability of Trident to leverage the broad product portfolio, IP expertise and operational infrastructure of the combined businesses to support growth, and the ability of Trident to extend its TV leadership position and become a strong challenger to the incumbent leaders in the set-top box business.

These forward-looking statements are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, our ability to realize the benefits from our acquisition of product lines from NXP, our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident’s products, and competitive pressures, including pricing and competitors’ new product introductions, the impact of the uncertain global macroeconomic environment, the increasingly competitive DTV market and our ability to retain key employees. Additional factors that may affect Trident’s business are described in detail in Trident’s filings with the Securities and Exchange Commission available at http://www.sec.gov. Such forward-looking statements should not be relied upon as representing Trident’s views or expectations as of any subsequent date and Trident does not undertake any obligation to revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made.

• Approving the issuance of newly issued shares of Trident common stock to NXP B.V. in connection with Trident’s proposed acquisition of selected assets and liabilities of the television systems and set-top box business lines of NXP and the purchase for $30 million of Trident shares by NXP.
• Amending the Certificate of Incorporation of Trident, as amended, to increase to 250,000,000 the number of shares of common stock authorized for issuance so that the company will have a sufficient number of authorized but unissued shares to complete the share issuance to NXP.
• Approving the Trident Microsystems, Inc. 2010 Equity Incentive Plan.
• Approving a voluntary program that will permit eligible employees (excluding Board members and certain executive officers) to exchange certain outstanding stock options that are “underwater” for a lesser number of shares of restricted stock or restricted stock units.
• Electing two nominees, Brian R. Bachman and J. Carl Hsu, to Class II of the Board of Directors of Trident. 
• Ratifying the appointment of PricewaterhouseCoopers LLP as Trident’s independent registered public accounting firm for the fiscal year ending December 31, 2009, as a result of the determination by the Trident Board to change Trident’s fiscal year from June 30 to December 31, beginning with the fiscal year ending December 31, 2009.

The company currently expects to close the NXP transaction on Feb. 8, 2010. Also on Feb. 8, the company expects to announce its financial results for the fiscal second quarter ended Dec. 31, 2010, and to host a conference call at 2:00 p.m. Pacific Time. The domestic dial in is 866-202-3048; the international dial-in is 617-213-8843. Passcode: 96447383. A replay of the conference call will be available for two weeks and will be accessible by calling 888-286-8010 (domestic) or 617-801-6888 (international) using access code 75194851. This call will be webcast by Thomson/CCBN and will be accessible at Trident’s web site at: http://www.tridentmicro.com. The webcast will also be distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors will be able to listen to the call at www.fulldisclosure.com; institutional investors will be able to access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs for digital media applications, such as digital television and LCD television. Trident’s products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

For More Information

John Swenson

Director, Corporate Finance & Investor Relations

Tel: 408-764-8899

john.swenson@tridentmicro.com

Web site: http://www.tridentmicro.com

Company Sets Stockholders’ Meeting Date

Santa Clara, CA — Dec. 18, 2009 — Trident Microsystems, Inc. (Nasdaq: TRID) today announced the company has filed with the Securities and Exchange Commission the definitive proxy statement relating to the proposed acquisition of the television systems and set-top box business lines from NXP B.V. and has begun mailing it to its stockholders.

Trident’s annual meeting of stockholders will be held on Monday, January 25, 2010, to consider and vote on proposals to approve the transaction and related matters. The board of directors of Trident Microsystems has fixed the close of business on December 10, 2009 as the record date for determining the stockholders entitled to receive notice of, and vote at, the annual meeting.

The meeting will be at 2:00 p.m., local time, at Trident’s offices at 3408 Garrett Drive, Santa Clara, California 95054.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs, and associated software for digital media applications, such as digital televisions and LCD televisions. Trident’s products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company’s web site: http://www.tridentmicro.com.

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management of Trident concerning the proposed acquisition of the televisions systems and set-top box business lines from NXP B.V. and other future events and their potential effects on Trident. Such statements are based upon the current beliefs and expectations of our management, are not guarantees of future results and are subject to a significant number of risks and uncertainties. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies and risk relating to the merger, many of which are beyond our control, including the risk that the proposed acquisition may not close; that the requisite stockholder approvals may not be obtained; and that difficulties may be encountered in integrating the combined businesses and realizing the potential synergies of the proposed combination; among the other risks and uncertainties faced by Trident, as reported in its most recent Forms 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission (the “SEC”). No forward-looking statements in this filing or those filings should be relied upon as representing Trident’s views or expectations as of any subsequent date and neither company undertakes any obligation to revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made.

In connection with the proposed acquisition, Trident has filed with the SEC a proxy statement for the stockholders of Trident, and Trident may be filing other documents with the SEC regarding the proposed acquisition. The definitive proxy statement will be mailed to stockholders of Trident. BEFORE MAKING ANY VOTING DECISION, TRIDENT’S STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION. Investors and stockholders may obtain, without charge, a copy of the definitive proxy statement, as well as other relevant documents containing important information about Trident at the SEC’s website (http://www.sec.gov). Trident’s stockholders also may obtain, without charge, a copy of the definitive proxy statement and other relevant documents by directing a request by mail or telephone to Trident, 3408 Garrett Drive, Santa Clara, California 95054, Attention: Investor Relations, (408) 764-8808. Information about Trident’s directors and executive officers and other persons who may be deemed to be participants in the solicitation of proxies from Trident’s stockholders is set forth in Trident’s Annual Report on Form 10-K for the fiscal year ended June 30, 2009, as amended by Trident’s Annual Report on Form 10-K/A, which were filed with the SEC on September 11, 2009 and October 27, 2009, respectively, and the definitive proxy statement for Trident’s Annual Meeting of Stockholders, which was filed with the SEC on Schedule 14A on December 18, 2009.

Contact: John Swenson
Trident Microsystems, Inc.
408-764-8899
john.swenson@tridentmicro.com

SANTA CLARA, Calif., Oct. 26, 2009 — Trident Microsystems, Inc. (Nasdaq: TRID), a leader in high-performance semiconductor system solutions for the digital home, today announced results for its fiscal first quarter ended Sept. 30, 2009. For the fiscal first quarter, the company reported net revenues of $31.1 million, which compares with net revenues of $14.9 million in the prior sequential quarter and $34.8 million in the same quarter a year ago. The sequential increase is primarily attributable to the full quarter's impact of product lines acquired during the fiscal fourth quarter of 2009.

For the fiscal first quarter, the company reported a net loss of $17.2 million, or $0.25 per share, on a generally accepted accounting principles (“GAAP”) basis. This compares with a net loss of $21.1 million, or $0.32 per share in the prior sequential quarter and a net loss of $18.0 million, or $0.29 per share, in the same quarter one year ago.

Non-GAAP Results

Non-GAAP net loss for the fiscal first quarter was $11.6 million, or $0.17 per share. This compares with a non-GAAP net loss of $15.7 million, or $0.24 per share, in the prior sequential quarter and a non-GAAP net loss of $3.3 million, or $0.05 per share, in the same quarter a year ago. A detailed reconciliation between GAAP and non-GAAP net loss is provided in a table following the non-GAAP consolidated statements of operations.

Tier-One DTV Design Win

The company also announced today that its SoC has been selected for 2010 production by one of the largest global manufacturers of LCD televisions. Trident's product will be used in the customer's value product line serving the North American and European markets. Production shipments are expected to commence as early as December 2009.

Sylvia Summers, Trident's chief executive officer and president, said, “Over the past several months, we have dramatically transformed Trident. In May, our acquisition of key product lines and IP from Micronas significantly strengthened our SoC capabilities and enabled us to win the large, strategic OEM socket we are announcing today. Earlier this month, we announced the proposed acquisition of NXP's television and set-top box product lines, which will dramatically increase our scale and diversify our revenues, positioning Trident to leverage its R&D investment and IP across multiple served markets and to gain share in the fast-growing markets that serve the digital home. We believe that these transactions will accelerate our return to breakeven, which we now believe is achievable as early as the end of calendar 2010.”

Outlook

Trident's outlook for the fiscal second quarter ending Dec. 31, 2009, described below, is based on current expectations and is subject to various factors, including those set forth in the Forward-Looking Information statement below. Actual results may differ materially.

    --  Net revenues are expected to be in the range of $31 million to $34
        million.
    --  Non-GAAP gross margins are expected to be in the range of 27% to 30%.
    --  Non-GAAP operating expenses are expected to be in the range of $21
        million to $22 million, with research and development expenses in the
        range of $15 million to $16 million and selling, general and
        administrative expenses of approximately $6 million.
    --  Non-GAAP operating loss is expected to be in the range of $11 million to
        $14 million.
    --  Provision for income taxes is expected to be approximately $0.5 million.
    --  The company expects to end the quarter with a cash balance of
        approximately $135 million to $140 million.   This reflects the impact
        of expected operating losses as well as a one-time tax withholding
        payment of $12 million related to liquidation of a foreign subsidiary.

Use of Non-GAAP Financial Information

To supplement the consolidated financial results prepared under GAAP, Trident uses a non-GAAP conforming, or non-GAAP, measure of net loss that is GAAP net loss adjusted to exclude certain costs, expenses and gains. Non-GAAP net loss gives an indication of Trident's baseline performance before gains, losses or other charges that are considered by management to be outside the company's core operating results. In addition, non-GAAP net loss is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. Trident computes non-GAAP net loss by adjusting GAAP net loss for acquisition-related expenses, stock-based compensation expense, expenses related to the stock option investigation and related matters, restructuring charges, expenses related to software license fees adjustment, amortization and impairment of intangible assets from acquisitions, impairment loss, backlog amortization, capital gains and losses and dividend income. A detailed reconciliation between net loss on a GAAP basis and non-GAAP net loss is provided in a table following non-GAAP Consolidated Statements of Operations.

Investor Conference Call

Management will host a conference call at 2:00 pm Pacific Time today. The domestic dial in is 866-383-8009; the international dial-in is 617-597-5342. Passcode: 84683680. A replay of the conference call will be available for two weeks, beginning on Oct. 27, 2009 and will be accessible by calling 888-286-8010 (domestic) or 617-801-6888 (international) using access code 15024244. This call is being webcast by Thomson/CCBN and can be accessed at Trident's web site at: http://www.tridentmicro.com. The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com; institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding financial expectations for the second quarter of fiscal year 2010, expected shipments to a large global manufacturer of LCD televisions, as well as our ability to gain market share as a result of our acquisition. The forward-looking statements made above are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, our ability to close and realize the benefits from our acquisition of product lines from NXP, our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident's products, and competitive pressures, including pricing and competitors' new product introductions, the impact of the uncertain global macroeconomic environment, the increasingly competitive DTV market and our ability to retain key employees. Additional factors that may affect Trident's business are described in detail in Trident's filings with the Securities and Exchange Commission available at http://www.sec.gov.

Important Additional Information

This communication is being made in respect of a proposed transaction involving Trident Microsystems, Inc. and NXP B.V. In connection with the proposed acquisition of the television systems and set top box lines by Trident from NXP, Trident plans to file with the SEC a Proxy Statement. The definitive Proxy Statement will be mailed to the stockholders of Trident after clearance with the SEC. Trident will also file with the SEC from time to time other documents relating to the proposed combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE PROXY STATEMENT WHEN IT IS FILED WITH THE SEC, AND OTHER DOCUMENTS FILED BY TRIDENT WITH THE SEC RELATING TO THE PROPOSED ACQUISITION WHEN THEY ARE FILED, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION.

Investors and security holders may obtain a copy of the proxy statement (when available) and other documents filed with the SEC by Trident free of charge at the SEC's website at www.sec.gov. Investors and security holders may also obtain copies of the proxy statement (when available) and other documents filed with the SEC by Trident free of charge from Trident by directing a request to Trident, Attention: Investor Relations, (408) 764-8808, or by going to Trident's website at www.tridentmicro.com.

Trident and its directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Trident's directors and executive officers is contained in its annual proxy statement filed with the SEC on September 11, 2009. Additional information regarding the interests of such potential participants will be included in the proxy statement and the other relevant documents filed with the SEC (when available).

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs for digital media applications, such as digital television and LCD television. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

                              (Tables to follow)

                  TRIDENT MICROSYSTEMS, INC.
            CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Unaudited)
                                   September 30, June 30,
    (In thousands)                      2009       2009
                                        ----       ----
    ASSETS
    Current assets:
      Cash and cash equivalents       $160,955  $187,937
      Accounts receivable, net          17,789     9,375
      Inventories                       10,611     6,828
      Prepaid expenses and
       other current assets             11,047     9,425
                                        ------     -----
        Total current assets           200,402   213,565
    Property and equipment, net         26,696    27,587
    Intangible assets, net               6,660     7,685
    Goodwill                             7,848     7,708
    Other assets                         9,312     6,767
                                         -----     -----
        Total assets                  $250,918  $263,312
                                      ========  ========
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                 $12,496   $10,485
      Accrued  expenses and
       other current liabilities        25,557    25,059
      Income taxes payable              13,511    13,107
                                        ------    ------
        Total current
         liabilities                    51,564    48,651
    Long-term income taxes
     payable                            22,098    21,658
    Deferred income tax
     liabilities                            81        81
                                           ---       ---
        Total liabilities               73,743    70,390
                                        ------    ------
    Stockholders' equity:
      Capital stock                    235,613   234,204
      Accumulated deficit              (58,438)  (41,282)
                                       -------   -------
        Total stockholders'
         equity                        177,175   192,922
                                       -------   -------
        Total liabilities and
         stockholders' equity         $250,918  $263,312
                                      ========  ========

                      TRIDENT MICROSYSTEMS, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
                                Three Months Ended
    (In thousands,              ------------------
     except per        September 30,  June 30,       September 30,
     share data)             2009       2009              2008
                             ----       ----              ----
    Net revenues          $31,093    $14,912           $34,782
    Cost of
     revenues              20,592     10,290            22,707
                           ------     ------            ------
    Gross profit           10,501      4,622            12,075
    Gross margin             33.8%      31.0%             34.7%
    Research and
     development
     expenses              16,350     15,802            13,065
    % of net
     revenues                52.6%     106.0%             37.6%
    Selling,
     general and
     administrative
      expenses              8,837      7,421            10,105
    % of net
     revenues                28.4%      49.8%             29.1%
    In-process
     research and
     development                -        697                 -
    % of net
     revenues                   -        4.7%                -
    Restructuring
     charges                1,508          8                 -
    % of net
     revenues                 4.8%       0.1%                -
                              ---        ---               ---
    Operating loss        (16,194)   (19,306)          (11,095)
    % of net
     revenues               (52.1)%   (129.5)%           (31.9)%
    Net loss on
     investments                -          -            (8,141)
    Interest and
     other income
     (expense), net          (533)      (806)            3,128
                             ----       ----             -----
    Loss before
     income taxes         (16,727)   (20,112)         (16,108)
    % of net
     revenues               (53.8)%   (134.9)%           (46.3)%
    Provision for
     income taxes             429        963             1,861
    % of net
     revenues                 1.4%       6.5%              5.4%
                              ---        ---               ---
    Net loss             $(17,156)  $(21,075)         $(17,969)
                         ========   ========          ========
    Basic and
     diluted net
     loss per share        $(0.25)    $(0.32)           $(0.29)
                           ======     ======            ======
    Shares used in
     basic and
     diluted per
     share
     computation           69,237     65,565            61,152
                           ======     ======            ======

                    TRIDENT MICROSYSTEMS, INC.
     NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (Unaudited)
                                  Three Months Ended
     (In thousands,               ------------------
     except per          September 30, June 30,     September 30,
     share data)             2009       2009            2008
                             ----       ----            ----
    Net revenues          $31,130    $14,931         $34,782
    Cost of
     revenues              19,656      9,368          20,644
                           ------      -----          ------
    Gross profit           11,474      5,563          14,138
    Gross margin             36.9%      37.3%           40.6%
    Research and
     development
     expenses              15,631     12,886          11,721
    % of net
     revenues                50.2%      86.3%           33.7%
    Selling,
     general and
     administrative
      expenses              6,444      5,865           6,971
    % of net
     revenues                20.7%      39.3%           20.0%
    In-process
     research and
     development                -        697               -
    % of net
     revenues                   -        4.7%              -
                              ---        ---             ---
    Operating loss        (10,601)   (13,885)         (4,554)
    % of net
     revenues               (34.1)%    (93.0)%         (13.1)%
    Interest and
     other income
     (expense),
     net                     (533)      (806)          3,116
                             ----       ----           -----
    Loss before
     income taxes         (11,134)   (14,691)         (1,438)
    % of net
     revenues               (35.8)%    (98.4)%          (4.1)%
    Provision for
     income taxes             429        963           1,861
    % of net
     revenues                 1.4%       6.4%            5.4%
                              ---        ---             ---
    Net loss             $(11,563)  $(15,654)        $(3,299)
                         ========   ========         =======
    Basic and
     diluted net
     loss per share        $(0.17)    $(0.24)         $(0.05)
                           ======     ======          ======
    Shares used in
     basic and
     diluted per
     share
     computation           69,237     65,565          61,152
                           ======     ======          ======

                       TRIDENT MICROSYSTEMS, INC.
         RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                               (Unaudited)
                                     Three Months Ended
    (In thousands,                   ------------------
     except per share     September 30,      June 30,    September 30,
     data)                     2009            2009           2008
                               ----            ----           ----
    GAAP gross profit       $10,501          $4,622        $12,075
      Amortization of
       acquisition-
       related
       intangible
       assets (1)               938             768          1,106
      Stock-based
       compensation
       expense (2)                3             149            155
      Impairment of
       goodwill and
       intangible
       assets (3)                 -               -            383
      Restructuring
       Charges                   (5)              5              -
      Backlog
       amortization              37              19              -
      Prepaid
       royalties
       adjustment                 -               -            419
                                ---             ---            ---
    Non-GAAP gross
     profit                 $11,474          $5,563        $14,138
                            =======          ======        =======
    GAAP Research
     and development
     expenses               $16,350         $15,802        $13,065
      Stock-based
       compensation
       expense (2)              719           1,710          1,753
      Impairment of
       goodwill and
       intangible
       assets (3)                 -           1,706              -
      Software license
       fees (4)                   -            (500)          (409)
                                ---            ----           ----
    Non-GAAP
     Research and
     development
     expenses               $15,631         $12,886        $11,721
                            =======         =======        =======
    GAAP Selling,
     general and
     administrative
     expenses                $8,837          $7,421        $10,105
      Amortization of
       acquisition-
       related
       intangible
       assets (1)                51              51            137
      Stock-based
       compensation
       expense (2)              521           1,401            774
      Impairment of
       goodwill and
       intangible
       assets (3)                 -               -              4
      Stock options
       related
       professional
       fees (5)                (979)            104          2,219
      Acquisition-
       related expenses
       (6)                    2,800               -              -
                              -----             ---            ---
    Non-GAAP
     Selling, general
     and
     administrative
     expenses                $6,444          $5,865         $6,971
                             ======          ======         ======
    GAAP net loss          $(17,156)       $(21,075)      $(17,969)
      Gross profit
       reconciliation           973             941          2,063
      Research and
       development
       expenses
       reconciliation           719           2,916          1,344
      Selling, general
       and
       administrative
       expenses
       reconciliation         2,393           1,556          3,134
      Restructuring
       Charges                1,508               8              -
      Loss of sale of
       UMC stock                  -               -          8,141
      Capital gain on
       investments,
       net                        -               -            (12)
                                ---             ---            ---
    Non-GAAP net loss      $(11,563)       $(15,654)       $(3,299)
                           ========        ========        =======
    GAAP basic and
     diluted net loss
     per share               $(0.25)         $(0.32)        $(0.29)
                             ======          ======         ======
    Non-GAAP basic
     and diluted net
     loss per share          $(0.17)         $(0.24)        $(0.05)
                             ======          ======         ======
    Shares used in
     basic and
     diluted per
     share
     computation             69,237          65,565         61,152
                             ======          ======         ======
    (1) Amortization of acquisition-related intangible assets represents the
    amortization of identifiable intangible assets.
    Management deemed that these acquisition-related charges are not related
    to Trident's core operating performance and it is appropriate to exclude
    those charges from Trident's non-GAAP financial measures, as it enhances
    the ability of investors to compare Trident's period-over-period
    operating results.
    (2) Stock-based compensation expense relates primarily to the equity
    awards such as stock options and restricted stock. This is non-cash
    expense that varies in amount from period to period and is dependent on
    market forces that are often beyond Trident's control. Hence, management
    excludes this item from the non-GAAP financial measures.
    (3) Charges for impairment of goodwill and intangible assets incurred as
    a result of their carrying value exceeding the fair value.  The impaired
    goodwill and intangible assets related to acquired TMBJ and certain
    third-party purchased IP. Management believes that these charges are not
    directly associated with the Company's core operating performance.
    (4) Software license fees represent an adjustment for prior years'
    software usage.
    (5) Stock options related professional fees are excluded from the non-
    GAAP net loss calculation.  Management believes that these  professional
    fees are not related to the Company's ongoing business and operating
    performance of Trident.  Amounts in the three months ended September 30,
    2009 and June 30, 2009 include insurance reimbursements received for the
    Directors' and Officers' insurance, partially offset by the stock options
    related professional fees incurred.
    (6) Acquisition-related expenses represent external costs incurred in
    connection with our acquisition, which we generally would not have
    incurred in the normal course of business.

SANTA CLARA, Calif. and EINDHOVEN, The Netherlands, Oct 05, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — Trident Microsystems, Inc. (Nasdaq: TRID) and NXP Semiconductors today announced that they have signed a definitive agreement whereby Trident will acquire NXP's television systems and set-top box business lines. Trident would remain fabless with a significant presence in Asia and as a result of the transaction would have a global leadership position in the digital home entertainment market. Under the terms of the transaction, NXP will receive newly issued shares of Trident common stock equal to 60% of the total shares outstanding post-closing, including approximately 6.7 million shares that NXP will purchase at a price of $4.50 per share, resulting in cash proceeds to Trident of $30 million.

“As the fragmented consumer IC market continues to consolidate, the ability to leverage IP across multiple segments is becoming increasingly important due to the R&D investments necessary to deliver leading-edge innovation,” said Sylvia Summers, President and CEO of Trident. “Through this transaction, Trident will become one of the leading global suppliers with the product portfolio, IP and operational infrastructure required to effectively serve the large, high-growth digital home entertainment market.”

Including revenue from the acquired product lines, Trident would have estimated revenue of approximately $500 million in calendar 2009, with approximately 60% attributable to television and 40% to set-top box. Upon closing, Trident will have an extensive portfolio of consumer IP applicable to a range of markets, with over 2,000 granted and in-process patents including motion estimation/motion compensation and conditional access, as well as advanced 45nm SoC technology. The combined product portfolio will enable Trident to offer a broad range of semiconductor solutions to the digital home market, which Trident estimates will reach $5 billion by 2010.

“Success in the consumer business requires a company culture based on rapid decision making, a fast pace of innovation, and a highly competitive cost structure,” stated Summers. “This proposed transaction enables Trident to achieve the economies of scale required to compete in the digital home market, while also taking advantage of our start-up culture and cost-efficient Asia-based engineering and operations. As a result, Trident will be well positioned to address a larger market, accelerate our time to breakeven and achieve our long-term financial objectives.”

In order to drive cost-efficient innovation that is competitive with the industry's most aggressive consumer IC suppliers, Trident expects to retain a core set of technology centers of excellence in Europe and North America, while growing and leveraging the substantial engineering presence that each of NXP's Home business unit and Trident already has in Asia. Following the close of the transaction, Trident intends to continue supporting the existing customers and design wins of each company. In addition, Trident plans to develop a converged product roadmap, leveraging the substantial IP of both companies and cost structure of Trident to provide the competitive products required for the next generation of customer designs.

“We believe the consumer IC business is a large, high-growth opportunity, best served by a company dedicated to this market with a highly efficient operating infrastructure,” said Rick Clemmer, President and CEO of NXP. “This proposed combination is the ideal structure to position the considerable technology and market assets of our digital TV and set-top box lines for growth and financial success. As the single largest shareholder in the expanded Trident, NXP can continue to take part in the significant upside opportunity for this business while achieving another major milestone in NXP's plans to focus and lead in high-performance mixed signal.”

Reaffirming its long-term commitment to the digital home technology market, under the terms of the transaction, the primary shares being issued to NXP would be subject to a lock-up for two years.

Upon closing, Sylvia Summers will remain the CEO of Trident and Christos Lagomichos, EVP of NXP's Home business unit, will become President. Pete Mangan will remain senior vice president and chief financial officer of Trident. In addition, after closing, NXP and Trident intend to cooperate in the development of complementary end-to-end solutions in other selected high-growth technology areas, including NXP's car entertainment and silicon tuner product lines. Trident will be fabless and will have the ability to access state-of-the-art technology and manufacturing capacity from NXP's manufacturing facilities, as well as the partner foundries and subcontractors of both companies. As a result of the terms and conditions agreed between the parties, NXP will account for its investment in Trident under the equity method.

The Boards of Trident and NXP have unanimously approved the agreement and the transactions contemplated by the agreement. The transaction is subject to the approval of the stockholders of Trident, consultations with employee representatives in certain jurisdictions and other customary closing conditions, including regulatory approvals. The transaction is expected to close in the first calendar quarter of 2010.

Trident expects to generate $140 million to $160 million in revenue in the calendar quarter ending June 30, 2010, its first full quarter post-closing, and expects to break even on a non-GAAP operating basis as early as the end of calendar year 2010.

Trident Investor Conference Call Today at 8 AM Eastern Time

Trident management will host a conference call at 5:00 am Pacific Time today (8:00 am Eastern Time). The domestic dial in is 866-730-5769; the international dial-in is 857-350-1593. Passcode: 59258241. A replay of the conference call will be available for two weeks, beginning approximately two hours following the conference call and will be accessible by calling 888-286-8010 (domestic) or 617-801-6888 (international) using access code 26148685. This call is being webcast by Thomson/CCBN and can be accessed at Trident's web site at: http://www.tridentmicro.com/ . The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com http://www.fulldisclosure.com/ ; institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com http://www.streetevents.com/ ).

Press Conference Call Today at 9 AM Eastern Time/3 PM CET

Rick Clemmer, President and CEO, NXP Semiconductors and Sylvia Summers, President and CEO, Trident Microsystems, will host a conference call at 6:00 am Pacific Time today (9:00 am Eastern Time) for members of the press.

For Journalists; you may use following dial in number;

from Europe (via NL): +31 45 6316903

from US/Latam (via US): +1-480-629-9822

from Asia Pacific (via Singapore): +65-6823-2087

There will be a Q&A session after the introduction. You may register for questions during the conference call.

For listen only participants; we advise you to listen in via webcast via:

http://www.nxp.com/news/

About Trident Microsystems:

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs, and associated software for digital media applications, such as digital televisions and LCD televisions. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

About NXP Semiconductors:

NXP is a leading semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has about 29,000 employees working in more than 30 countries and posted sales of USD 5.4 billion (including the Mobile & Personal business) in 2008. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in TVs, set-top boxes, identification applications, mobile phones, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.

Cautionary Statement:

Statements about the ability of Trident to complete the transaction contemplated by the agreement with NXP, including the ability to satisfy the conditions set forth in the definitive agreement, and the possibility of the termination of the definitive agreement, Trident's market share and the expected competitive position of Trident following the completion of the proposed acquisition, are forward-looking statements. A number of the matters discussed in this presentation that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: failure to achieve the economies of scale, revenue growth, operating synergies and efficiencies of the acquisition; the result of any regulatory review of the proposed transaction; approval of the acquisition by the stockholders of Trident and satisfaction of various other conditions to the closing of the acquisition; and the risks that are described from time to time in the Company's reports filed with the Securities and Exchange Commission, or SEC, including Trident's annual report on Form 10-K for fiscal the year ended June 30, 2009.

Important Additional Information

In connection with the proposed acquisition of assets of NXP and solicitation of approval of the Trident stockholders, as well as in connection with its 2009 annual meeting of stockholders, Trident plans to file a proxy statement with the SEC. The definitive proxy statement will be mailed to the stockholders of Trident after clearance with the SEC. Trident will also file with the SEC from time to time other documents relating to the proposed combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE PROXY STATEMENT WHEN IT IS FILED WITH THE SEC, AND OTHER DOCUMENTS FILED BY TRIDENT WITH THE SEC RELATING TO THE PROPOSED ACQUISITION WHEN THEY ARE FILED, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION.

The final proxy statement will be mailed to stockholders of Trident. Investors and security holders may obtain a free copy of the definitive proxy statement and other documents when filed with the SEC at the SEC's website at www.sec.gov. In addition to the proxy statement, Trident files annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by Trident at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-732-0330 for further information on the public reference room. Trident's filings with the SEC are also available to the public from commercial document-retrieval services and free of charge at the website maintained by the SEC at www.sec.gov. In addition, Trident's SEC filings may be obtained free of charge from Trident's website (www.tridentmicro.com) or by calling Trident's Investor Relations department at (408) 764-8808.

Trident, and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed acquisition. Information about the directors and executive officers of Trident and the interests of such participants in the proposed acquisition will be included in the proxy statement and the other documents filed by Trident with the SEC relating to the proposed acquisition when filed.

SANTA CLARA, Calif., Oct 05, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — Trident Microsystems, Inc. (Nasdaq: TRID), a leader in high-performance semiconductor system solutions for the multimedia and digital television market, today provided revised guidance for its fiscal first quarter ended Sept. 30, 2009.

The company currently expects to report revenue of approximately $31 million for the quarter, up from prior guidance of $22-$25 million. The increase primarily relates to increased sales of discrete products. The company expects to report a lower non-GAAP operating loss in the range of approximately $10 million, as compared with earlier guidance of $12-$14 million. The company expects to report cash of approximately $161 million at quarter end which is slightly lower than guidance based upon the timing of working capital in the quarter.

The company expects to report its full results for the fiscal first quarter the week of Oct. 26, 2009.

Separately today, Trident and NXP Semiconductors announced that they have signed a definitive agreement whereby Trident will acquire NXP's television systems and set-top box business lines. Trident would remain fabless with a significant presence in Asia and as a result of the transaction would have a global leadership position in the digital home entertainment market. Under the terms of the transaction, NXP will receive newly issued shares of Trident common stock equal to 60% of the total shares outstanding post-closing, including approximately 6.7 million shares that NXP will purchase at a price of $4.50 per share, resulting in cash proceeds to Trident of $30 million.

Investor Conference Call Today at 8 AM Eastern Time

Management will host a conference call at 5:00 am Pacific Time today (8:00 am Eastern Time). The domestic dial in is 866-730-5769; the international dial-in is 857-350-1593. Passcode: 59258241. A replay of the conference call will be available for two weeks, beginning approximately two hours following the conference call and will be accessible by calling 888-286-8010 (domestic) or 617-801-6888 (international) using access code 26148685. This call is being webcast by Thomson/CCBN and can be accessed at Trident's web site at: http://www.tridentmicro.com. The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com; institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).

Use of Non-GAAP Financial Information

To supplement the consolidated financial results prepared under GAAP, Trident uses a non-GAAP conforming, or non-GAAP, measure of net income (loss) that is GAAP net income (loss) adjusted to exclude certain costs, expenses and gains. Non-GAAP net income (loss) gives an indication of Trident's baseline performance before gains, losses or other charges that are considered by management to be outside the company's core operating results. In addition, non-GAAP net income (loss) is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with, or an alternative for, GAAP and may be materially different from non-GAAP measures used by other companies. Trident computes non-GAAP net income (loss) by adjusting GAAP net income (loss) for stock-based compensation expense, expenses related to the stock option investigation and related matters, restructuring charges, expenses related to software license fees adjustment, amortization of intangible assets from the acquisition of Trident's Beijing subsidiary and the purchase of the minority interests of Trident's Taiwan subsidiary (Trident Technologies, Inc.), impairment loss, backlog amortization, capital gains and losses and dividend income. Upon release of its full financial results, a detailed reconciliation between net income (loss) on a GAAP basis and non-GAAP net income (loss) is provided in a table following non-GAAP Consolidated Statements of Operations.

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding financial expectations for the first quarter of fiscal year 2010. The forward-looking statements made above are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, the risk that our reported results may be materially different from our expected results, our failure to complete the acquisition with NXP, our failure to achieve the economies of scale, revenue growth, operating synergies and efficiencies of the acquisition; the result of any regulatory review of the proposed transaction; approval of the acquisition by the stockholders of Trident and satisfaction of various other conditions to the closing of the acquisition; our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet; the timing of product introductions; the ability to obtain design wins among major OEMs for Trident's products; competitive pressures, including pricing and competitors' new product introductions; the impact of the deteriorating global macroeconomic environment, the increasingly competitive DTV market; and our ability to retain key employees following completion of the acquisition. Additional factors that may affect Trident's business are described in detail in Trident's filings with the Securities and Exchange Commission available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs for digital media applications, such as digital television and LCD television. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

Important Additional Information Will be Filed with the SEC

This communication is being made in respect of the proposed acquisition involving Trident and NXP. In connection with the proposed Acquisition, Trident plans to file with the Securities and Exchange Commission (the “SEC“) a Proxy Statement as well as other documents regarding the proposed transactions. The definitive Proxy Statement will be mailed to stockholders of Trident. INVESTORS AND SECURITY HOLDERS OF TRIDENT ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS.

Investors and security holders will be able to obtain free copies of the Proxy Statement (when available) and other documents filed with the SEC by Trident through the website maintained by the SEC at http://www.sec.gov and at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-732-0330 for further information on the public reference room. In addition, Trident's SEC filings may be obtained free of charge from Trident's website (www.tridentmicro.com) or by calling Trident's Investor Relations department at (408) 764-8808.

Trident and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Trident's directors and executive officers is available in its Annual Report on Form 10-K for the fiscal year ended June 30, 2009, which was filed with the SEC on September 11, 2009, and its proxy statement for its 2008 annual meeting of stockholders, which was filed with the SEC on October 17, 2008. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC when they become available.

Outlook Includes Acquisition of Micronas Product Lines

Santa Clara, Calif. – May 18, 2009: Trident Microsystems, Inc. (NASDAQ: TRID), a leader in high-performance semiconductor system solutions for the multimedia and digital television (DTV) markets, today announced an update to its outlook for the fourth quarter of fiscal year 2009.

Trident's outlook for the fourth quarter of fiscal year 2009, described below, is based on current expectations, includes expected results from the recently completed acquisition of certain consumer business division assets from Micronas Semiconductor Holding AG, and is subject to various factors, including those set forth in the Forward-Looking Information statement below. Actual results may differ materially.

Fourth Quarter Fiscal Year 2009 Outlook

• Net revenues are expected to be in the range of $15 to $18 million.
• Non-GAAP Gross Margin in the low 30% range.
• Non-GAAP operating loss is projected to be in the range of $15 to $17 million.
• The company expects to end the quarter with a cash balance of approximately $177 to $182 million.

Forward-Looking Information

This press release contains forward-looking statements, including statements regarding updated financial expectations for the fourth quarter of fiscal year 2009 and results expected to be achieved in connection with our acquisition of certain consumer business division assets from Micronas Semiconductor Holding AG. The forward-looking statements made above are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, in particular, our ability to successfully integrate the consumer business division product lines acquired from Micronas, our ability to build upon our core strengths, including our technology, engineering team, competitive cost structure and strong balance sheet, the timing of product introductions, the ability to obtain design wins among major OEMs for Trident's products, and competitive pressures, including pricing and competitors' new product introductions, the impact of the current global macroeconomic environment, the increasingly competitive DTV market and our ability to retain key employees. Additional factors that may affect Trident's business are described in detail in Trident's filings with the Securities and Exchange Commission available at http://www.sec.gov.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs, and associated software for digital media applications, such as digital televisions and LCD televisions. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc., HiDTV(TM), DPTV(TM), SVP(TM) WX, SVP(TM) UX, SVP(TM) PXP and SVP(TM) CX are trademarks of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

Santa Clara, Calif. – May 14, 2009: Trident Microsystems, Inc. (NASDAQ: TRID), a leader in high-performance semiconductor system solutions for the multimedia and digital television (DTV) markets, today announced that it has completed the acquisition of selected assets of the frame rate converter (FRC), demodulator and audio product lines of Micronas Semiconductor Holding AG (SIX Swiss Exchange: MASN), including products, technology and intellectual property used in Micronas' FRC line of frame rate converters, the DRX line of demodulators and all of the Micronas audio processing products. The consideration paid to Micronas consisted of 7.0 million shares of Trident common stock and warrants to acquire up to 3.0 million additional Trident shares.

As a result of the acquisition, Trident's total worldwide headcount has increased by approximately 150 employees and Trident has opened new design centers in Munich and Freiburg, Germany, as well as Nijmegen, The Netherlands. Trident's European headquarters will be located in Munich.

“This acquisition is an important step and catalyst in achieving our vision to reemerge as a leading DTV multimedia solutions provider,” said Sylvia Summers Couder, Trident's Chief Executive Officer and President. “We are excited about the opportunities the combined product portfolio will bring as this acquisition will expand the markets and customers we serve, upgrade our intellectual property, as well as reduce our expected cash burn rate,” added Summers.

Advisors

Union Square Advisors LLC acted as exclusive financial advisor to Trident. DLA Piper LLP and Schellenberg Wittmer served as legal counsel to Trident.

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, designs, develops and markets integrated circuits, or ICs, and associated software for digital media applications, such as digital television, LCD television, or TV, and digital set-top boxes, or STB. Trident's products are sold to a network of OEMs, original design manufacturers and system integrators worldwide. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

NOTE: Trident is a registered trademark of Trident Microsystems, Inc., HiDTV? DPTV(TM), SVP(TM) WX, SVP(TM) UX, SVP(TM) PXP and SVP(TM) CX are trademarks of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.