Hyundai Electronics announces new flash memory division; Silicon Valley-based start-up plans innovative flash designs, gathers experienced development talent.

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 8, 1995--Hyundai Electronics Industries, an international manufacturer of components, computers and other key information systems products, today announced its creation of a new Flash Memory Division headquartered in Sunnyvale, California.

The start-up operation, a division of Milpitas, CA-based Hyundai Electronics America, will apply new Flash memory technologies, developed by the division founders, to better serve growth opportunities in this semiconductor segment. It will eventually employ approximately 150. It expects to enter the market with new products in 1996.

"Flash is an excellent growth opportunity for Hyundai," said J.Y. Kim, president of Hyundai Electronics Industries (HEI) in Ichon, Korea. "Our long- term goal is to become the leading supplier of memories. We are currently a major DRAM player and we see Flash providing our next most significant sales opportunity in this area." Flash technology provides a cost-effective combination of non-volatility (the ability to retain data even in the absence of power) and in-system reprogrammability. This makes Flash a key enabling technology in many design applications and among the fastest growing semiconductor product categories.

In 1994 Dataquest, San Jose, CA estimated the market for Flash memory to be $887 million. It currently projects that this market will grow to $6.2 billion by the year 2000. Growth will be driven by personal computers, disk drives, printers, modems, cellular telephones, networking products, set-top boxes, digital answering machines and cameras, games and PC memory cards.

"There is certainly room for another major player in Flash," said Jim Handy, director and principal analyst for MOS memories at Dataquest. "With the talent they have attracted and the resources of a $70 billion company at their disposal, Hyundai's chances for success are high."

"The industry's best talent in Flash is located in the United States," said Y.H. Kim, president, CEO of Hyundai Electronics America. "We decided to create and locate technology development, design, product engineering and marketing near our U.S headquarters. We have already attracted a core management team and are actively recruiting in all areas."

New Management Team

Hired as President of the Hyundai Flash Division (HFD) is W. Tom Anderson, respected non-volatile memory technologist and former president of Delta Tech Corp and International Technologies, both of Charlotte, NC.

"We have the powerful combination of Flash technology expertise, design and marketing talent and Hyundai's high volume manufacturing capacity," Anderson said.

Founding management team members include: Steve Grossman, vice president of marketing, formerly director of marketing for non-volatile memories at Advanced Micro Devices, Sunnyvale, CA; Dr. Kamal Rajkanan, vice president of engineering, formerly director of IC design at Zilog, Campbell, CA; Sam Young, vice president of business development, previously vice president of sales with Corsair Microsystems and vice president of sales and marketing at Alliance Semiconductor both in San Jose, CA; and John Chang, design manager, from the same role at Flash pioneer Exel Microelectronics, San Jose, CA. Color/black and white photography available for all management team members.

The Hyundai Flash Division is located at 1330 Bordeaux Avenue, Sunnyvale, CA 94089. Phone [phone], FAX [phone].

Background

Hyundai Electronics Industries Company, Ltd. (HEI) was founded in 1983. Today it has become one of the largest semiconductor memory manufacturers in the world. Combining many business divisions including computer systems, telecommunications products, system ICs and optical components, Hyundai Electronics America is a wholly owned subsidiary of HEI whose parent is the Hyundai Business Group, Seoul, Korea. Hyundai is a nearly $70 billion corporation involved in over 40 business areas ranging from steel fabrication, petrochemicals, engineering and construction to automobiles, finance, insurance and securities. Hyundai Electronics America is currently headquartered at 510 Cottonwood Drive, Milpitas, CA 95035. -0-

Note to Editors: Management team member photos available on request

CONTACT: Hyundai Electronics America

Steve Grossman, 408/743-8815

or

Miller Communications

Ford Kanzler, 415/962-9550

[e-mail]