Micron Technology, Inc., Purchases Fabrication Facility from ZiLOG, Inc., to Support Image Sensor Production; Industry's No. 1 Supplier of CMOS Image Sensors Adds Capacity to Meet Customer Demand.

BOISE, Idaho & SAN JOSE, Calif. -- Micron Technology, Inc., today announced it has purchased a fabrication facility in Nampa, Idaho, from ZiLOG, Inc. Micron plans to use the facility for the final stages of image sensor production and other fabrication processes. Micron is the technology industry's leading supplier of CMOS image sensor solutions.

Micron purchased the 8-inch wafer fabrication facility and surrounding land from ZiLOG and its affiliate, ZiLOG Mod III, Inc., for a total consideration of $5 million. ZiLOG Mod III received about $3.9 million for the facility and 19 acres of the surrounding land, and ZiLOG received $1 million for its vacant 19 acres at the site. The transaction costs will be apportioned on a prorated basis to the parties. Micron plans to invest in facility improvements and expects to bring the facility online by the end of the year. Micron also expects to hire operators, technicians and support staff at the facility.

"Micron is the world's leading supplier of advanced image sensor solutions in applications ranging from mobile camera phones and PC cameras to healthcare, security and automotive markets," said Steve Appleton, Micron chairman, CEO and president. "This acquisition allows us to move the final stages of image sensor silicon processing and other critical manufacturing steps from our Boise manufacturing operations to this new facility, which at the same time will free up space in our existing facilities and allow us to continue to meet expanding demand for our products."

"We are very pleased to close this transaction with a company like Micron Technology whose leadership is well known around the world," said ZiLOG, Inc, Chief Financial Officer Perry Grace. "The transaction is a very positive development for ZiLOG and ZiLOG Mod III, Inc. shareholders, Micron and most importantly for the Nampa community."

The sale of the MOD III facility to Micron includes all land and buildings owned by ZiLOG Mod III, Inc. and certain vacant property owned by ZiLOG, Inc. ZiLOG Mod III, Inc. was a special subsidiary established by ZiLOG, Inc. in 2002 to hold the Mod III assets pending their sale.

The cost of the transaction to ZiLOG is estimated to be $300,000 and the costs to liquidate ZiLOG Mod III, Inc. are estimated to be $200,000 which will be netted from the proceeds. Of the $5 million proceeds from the sales, it is anticipated that approximately $2.5 million will be distributed to holders of ZiLOG Mod III, Inc. Series A Preferred Stock and $2 million will be retained by ZiLOG, Inc. This transaction represents the sale of the remaining assets in Mod III and, as such, ZiLOG Mod III, Inc. expects to seek a shareholder vote to liquidate and distribute net proceeds to its preferred shareholders at the conclusion of that process. The estimated distribution to the ZiLOG Mod III, Inc. shareholders reflects a reimbursement to ZiLOG of costs it has incurred totaling approximately $800,000. These costs include sustaining costs incurred by ZiLOG on behalf of ZiLOG Mod III, Inc. since the last sale of assets in 2004.

About Micron Technology, Inc.

Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking, and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit www.micron.com.

About ZiLOG, Inc.

ZiLOG, Inc. (NASDAQ:ZILG) Founded in 1974, ZiLOG won international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, ZiLOG is a leading global supplier of microcontrollers and universal remote control solutions. It designs, manufactures and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. ZiLOG is headquartered in San Jose, California, and employs approximately 500 people worldwide with sales offices throughout Asia, Europe and North America. For more information about ZiLOG and its products, visit the Company's website at: www.ZiLOG.com.

Micron and the Micron orbit logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners. ZiLOG is a trademark or registered trademark of ZiLOG, Inc. in the United States and in other countries. Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.

This release contains forward-looking statements, including statements regarding the amount of proceeds available for distribution to shareholders of ZiLOG Mod III, Inc. These relate to expectations, plans or prospects for ZiLOG, Inc. and ZiLOG Mod III, Inc. that are based upon the current expectations and beliefs of ZiLOG's and ZiLOG Mod III, Inc.'s management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, the amount of proceeds which are ultimately available for distribution to ZiLOG Mod III's shareholders could vary based on the actual costs of the sale and the liquidation and the value of contingent liabilities of ZiLOG Mod III, Inc. Notwithstanding changes that may occur with respect to matters relating to the forward-looking statements, ZiLOG does not expect to, and disclaims any obligation to, update such statements. ZiLOG, however, reserves the right to update such statements or any portion thereof at any time for any reason.

This press release contains forward-looking statements regarding Micron's plans and expectations for the Nampa facility. Actual events or results may differ materially from those contained in the forward-looking statements. Please refer to the documents Micron files on a consolidated basis from time to time with the Securities and Exchange Commission, specifically Micron's most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results for Micron on a consolidated basis to differ materially from those contained in our forward-looking statements (see Certain Factors or Risk Factors). Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this press release to conform to actual results.