Atmel Licenses Two ARM9 Cores for Advanced System-on-Chip Designs.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 9, 2000

Cores to be Used in Atmel's Growing Family of ASIC,

Wireless, Wireline, Multimedia, E-Security and Microcontroller SoCs

Atmel Corporation (Nasdaq:ATML) today announced that it has licensed the 32-bit ARM920T(TM) and ARM946E-S(TM) microcontroller cores from ARM. The ARM920T solution is a cached processor targeted for "open systems" such as Windows CE, that require full virtual memory management and memory protection. The ARM946E-S solution is a synthesizable, high performance processor, with flexible cache memory sizes, targeted for closed embedded applications with memory management requirements. Atmel has been a licensee of the ARM7TDMI(R) core since 1996, and has used the core to successfully implement Bluetooth, 802.11, and flash-based microcontroller ICs.

Atmel will use the two cores in three exceptionally high growth areas: 1) high performance system-on-chip (SoC) implementations of standard products for wireless, wireline, multimedia and secure applications; 2) ARM9 core-based, single chip, flash-based microcontrollers; and 3) in the design and fabrication of custom systems-on-chip for high volume ASIC customers. Atmel achieved half of its 1999 revenue in ASICs, MCUs and ASSPs. Fifteen percent of the company's 1999 revenues were from SoC products. The company forecasts that by 2002 almost half of its revenue will come from SoC products. ASIC, MCU and ASSP combined are expected to account for 70% of the company's revenues.

According to John Ford, Atmel's director of ASIC marketing, "With throughput as high as 220 MIPS, the ARM9 core is an exceptionally high performance microcontroller solution that is ideally suited for wireless RF, multimedia video imaging and secure SoCs that Atmel develops. The ARM946E-S solution offers flexibility in size and type of cache memory. Atmel can use this core in its FlashASIC(TM) and E2ASIC(TM) products to provide NVM solutions to SoC designs. As the core is synthesizable, it can be quickly ported to new technology, greatly accelerating time to market. The ARM920T solution will be used for handheld computing and internet appliance applications."

"This agreement enhances Atmel's already impressive ability to provide innovative products for wireless RF, multimedia, and secure SoCs for a diverse marketplace," said Reynette Au, vice president of Worldwide Marketing for ARM. "Our continued partnership with leading semiconductor manufacturers like Atmel demonstrates our commitment to the ever increasing needs of high-performance, low-power technologies."

Standard Product SoCs -- Atmel will use the ARM9 cores in standard SoC products, including encryption/decryption engines for smart card ICs, set-top box controllers, video imaging systems, DVD storage products, video conferencing, Voice-over Internet Protocol (VoIP) and internet appliances. Atmel is a major player in the rapidly growing wireless RF market, offering standard products, IP and ASIC design services in the areas of GSM, CDMA, Bluetooth, 802.11, wireless Ethernet LAN, Remote Keyless Entry, and home RF.

Atmel is the world's third largest supplier of e-security products including cryptocontrollers, secure memories and smart card ICs, a market that is experiencing triple digit growth rates. Atmel's secure smart cards offer 1024-bit RSA encryption/decryption in less than 180 ms. They also offer twice the amount of on-chip flash memory as the nearest smart card IC competitor, making the company's e-security ICs ideal for high density applications, such as medical data storage, biometric identification and others.

World's Largest Vendor of Flash MCUs -- As the world's leading vendor of flash-based microcontrollers, Atmel has already developed a family of ARM7(TM) core-based flash MCUs that offer the world's highest densities of on-chip flash and SRAM, plus architectural features that allow superior throughput with very low power consumption. Atmel plans to extend its flash MCU offering to include a family of ARM9 core-based microcontrollers.

Top ASIC -- Atmel also offers comprehensive engineering, intellectual property and design services for the development of ARM9-based application specific systems-on-chip for high volume ASIC customers. Atmel is one of the world's largest ASIC vendors. The company's track record developing its own standard product SoCs and its extensive intellectual property in wireless RF, multimedia, encryption/decryption, and image processing make it the ideal company to fully exploit the implementation of the ARM9 family in ASICs.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California with principal manufacturing facilities in Colorado Springs, Colorado; Irving, Texas; Grenoble, Nantes and Rousset, 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 are available from its Fax-on-Demand service. In North America call 800/292-8635 or Internationally, call 408/441-0732. Requests may be made via e-mail to [e-mail] or by visiting Atmel's web site at www.atmel.com.

Note to Editors: Atmel, the Atmel logo and combinations thereof and others contained herein, are trademarks of Atmel Corporation. ARM and ARM7TDMI are registered trademarks of ARM Limited. ARM7, ARM9, ARM946E-S and ARM920T are trademarks of ARM Limited. "ARM" is used to represent ARM Holdings plc (LSE:ARM)(Nasdaq:ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM, INC.; ARM KK; ARM Korea Ltd.

Terms and product names in this document may be the trademarks of others. For photo requests contact Wendy Asato at [e-mail]