Atmel Comments on Interim Ruling in Recent Litigation.

Business Editors and Legal/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 26, 2000

Atmel Corporation (Nasdaq:ATML) provided an update today on interim rulings in pending litigation. According to Julie Mar-Spinola, Atmel's director of Litigation and Intellectual Property Counsel, "Atmel has brought several f patent infringement claims against a number of defendants, including Silicon Storage Technology, Inc (SST), in the International Trade Commission (ITC) and U.S. District Courts. Although the litigation process is not proceeding as quickly as Atmel expects, the fact remains that Atmel's claims have yet to be finally ruled on by either forum. These recent rulings are not, as past history indicates, necessarily good predictors of future results. However, Atmel remains confident of the ultimate outcomes.

"In 1997, in connection with the ITC proceedings brought by Atmel, the Administrative Law Judge (ALJ) entered his initial determination that U.S. Patent No. 4,451,903 (the ''903 Patent') for a 'Method and Device for Encoding Product and Programming Information in Semiconductor' was valid and enforceable. The Commission, however, held that the '903 Patent was unenforceable for failure to name an inventor, a technical and disfavored defense, and therefore an error which is correctable. At that time, one Commissioner wrote separately to express her view, that, if enforceable, she would find the '903 Patent infringed by SST, among others. Atmel then took steps, consistent with applicable law, to correct the inventorship of the '903 Patent. Once corrected, Atmel then took the '903 Patent back to the Commission to enforce it."

Mar-Spinola continued, "The ALJ's recent ruling that the corrected '903 Patent is unenforceable is not the final word on this issue. Atmel strongly believes that this initial determination is unwarranted both on the facts and the law, and expects to file a petition seeking review by the Commission on May 30, 2000. Atmel continues to have the opportunity to have this issue ultimately resolved by the U.S. Court of Appeals for the Federal Circuit (Federal Circuit).

"On a related issue, Atmel expects the Commission will also be deciding this summer Atmel's claim that U.S. Patent No. 4,511,811 (the ''811 Patent') for a 'Charge Pump for Providing Programming Voltage to the Word Lines in a Semiconductor Memory Array' was infringed by SST, among others. The Federal Circuit recently held that the '811 Patent was not invalid. Additionally, Atmel anticipates that a recent ruling by the District Court for the Northern District of California in a Proposed Order, construing Claim 1 of the '811 Patent favorably to Atmel, will have a significant impact in not only the ITC proceedings, but also in the District Court action pending against SST."

In conclusion, Mar-Spinola commented, "Atmel is proceeding according to the rules of the legal process and does not believe that there has been any legal ruling that diminishes the value of its Intellectual Property portfolio. Atmel regrets any misconception that has resulted from our adversary's press release relating to the ALJ's recent initial opinion on the '903 Patent. It is Atmel's policy not to comment on on-going litigations or to predict the ultimate outcomes of such complex litigations. In this instance, however, Atmel could not allow the misconception to continue without appropriate explanation."

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, Calif., with principal manufacturing facilities in Colorado Springs, Colorado, Nantes and Rousset and Grenoble, France and Heilbronn, Germany. Atmel designs, manufactures and markets on a worldwide basis advanced logic, mixed-signal, nonvolatile memory, and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using advanced CMOS, BiCMOS, BiPolar and SiGe process technologies.

Atmel product and financial information can be retrieved from its Fax-on Demand service. In North America call 800/292-8635. Internationally from a fax phone, dial 408/441-0732. Requests may be sent via e-mail to [e-mail] or by visiting Atmel's website at http://www.atmel.com.

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially.