110nm Floating Gate Technology at Spansion's Fab 25 Surpasses 50 Percent of Production; Fab 25 Serving Increased Wireless Market Demand for 110nm Technology.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--April 20, 2004

Spansion today announced that volume production of 110nm floating gate technology in its Austin Fab 25 "MegaFab" now accounts for more than 50 percent of the facility's total production. By midyear, Spansion expects planned output from the facility to be almost exclusively dedicated to 110nm technology.

"Fab 25's near flawless ramp on the 110nm floating gate process is already generating yields well in excess of plans and close to those for mature technologies in full production," said Randy Blair, vice president, Fab 25. "The combination of excellent yields and a faster than planned production ramp is accelerating our progress to double Spansion Flash memory capacity."

In March, Spansion announced it was ramping into volume production on 110-nanometer floating gate products. This event is significant because it represented the industry's first push beyond the 130-nanometer barrier in commercial NOR Flash memory production.

"The Fab 25 success story continues," said Jim Doran, executive vice president worldwide technology development and manufacturing of Spansion. "We set records last year with our excellent ramp of 130nm technology and then promptly broke those records this year with yet another exceptional execution of our ramp to 110nm technology. Fab 25 is truly a manufacturing powerhouse in Flash memory working in support of our customers' business growth."

Spansion's second "MegaFab," JV3 in Aizu-Wakamatsu is expected to follow the same path on 110nm technology in the second half of 2004.

About Spansion(TM) Flash Memory Devices

Spansion(TM) Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. Spansion Flash memory customers represent leaders in the wireless, cellular, automotive, networking, telecommunications and consumer electronics markets. There are a variety of Spansion Flash memory products, such as devices based on the innovative MirrorBit(TM) technology; the award-winning simultaneous read-write (SRW) product family; super low-voltage 1.8 volt Flash memory devices; and burst- and page-mode devices. Information about Spansion Flash memory solutions is available at http://www.spansion.com/overview.

Spansion was formed by the integration of AMD's and Fujitsu's Flash memory operations in 2003. It is the largest NOR Flash memory company in the world. Spansion Flash memory solutions are available worldwide from AMD (NYSE:AMD) and Fujitsu (TSE:6702).

On the Web

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Cautionary Statement

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include the possibility that demand for the company's Flash memory products will be lower than currently expected, particularly in the high-end cellular telephone sector, and that the company will not be able to increase its Flash memory market share; that Intel Corporation will negatively affect NOR Flash memory prices; that customer acceptance of MirrorBit technology will not continue to increase; that the company will not continue to be successful integrating the Flash memory operations of FASL LLC, or be able to achieve or sustain any benefit from its creation; that the company will not be able to meet demand for its Flash memory products; that the company may not achieve its current product and technology introduction schedules; that the company's transition to 110nm manufacturing processes for Flash memory will not occur in the expected time frame and that the company will not recognize the expected benefits from the technology transition. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 28, 2003.

Spansion, FASL, and MirrorBit are trademarks of FASL LLC. AMD is a trademark of Advanced Micro Devices, Inc. Other product and company names used in this publication are for identification purposes only and may be trademarks of their respective companies.