Odd situation here, bought a bag of LM35DZ from a well known auction site.
Connected into my project and it appears to be outputting its voltage in reverse..?
Also tried this on a breadboard with the LM35DZ on a 5v straight supply.
Gives me 0.42V output at room temp. Heat it up with a lighter and the voltage slopes off to around 0.05v before I smell the thing cooking, which slowly rises back to 0.4v when cooling, then I give it a cold shock with a bag of frozen peas, output voltage rises to just over 0.5v, and it could go higher if I had a good contact with the TO-92 face.
Have I bought Australian LM35DZ's or are my eyes in backwards?
Regards Neil
whitebakecase:
...are my eyes in backwards?
Maybe your meter leads are 
Unexplainable things with the LM35DZ...
There have been several of these posts in the past.
You have probably bought Chinese fakes.
Go dig a hole in the garden and drop them in there.
Leo..