SMART Modular Technologies Announces Cost-Effective High Density DRAM Modules; Silicon Cost- Savings over 65% for Workstations/Server Main Memory; 16-Mbit DRAM- Based Modules Provide Huge Cost Savings Over 64-Mbit DRAM Based Designs; Fit Standard 72, 168 and 200-pin Sockets in the Motherboard.

FREMONT, Calif.--(BUSINESS WIRE)--Dec. 2, 1996--SMART Modular Technologies, Inc. (Nasdaq:SMOD) announces the immediate availability of DRAM memory modules with densities as high as 128MB, using cost- effective 16-Mbit chips.

Because of the 10-1 cost difference between 16-Mbit and 64-Mbit DRAMs, these modules provide cost-effective memory solutions to OEMs for workstations, routers, servers, test systems and telecom.

SMART uses a stacked approach with on-board buffers to deliver 64 or 128 MB in DRAM memory modules using 16-Mbit chips at one-third the silicon cost required to build the same density modules using 64-Mbit devices. SMART's High Density 16-Mbit DRAM-based modules are priced at $7-8 per MB in quantities of 100.

SMART's new High Density DRAM modules based on 16-Mbit chips, match standard modules in all functional characteristics. The modules in 72, 128 and 200-pin configurations, fit standard slots on the motherboard.

In addition, SMART uses stacked board technology, which puts together two separate PCBs with a through-hole connector, and uses DRAMs in a TSOP package, making the modular dimensions well within the normal thickness constraints of today's standard modules. SMART Modular Technologies, Inc.

"With servers and workstations moving from 256 MB to 1 GB of main memory, most designers had anticipated the need to use 64-Mbit DRAM chips to achieve these high-density main memories," said Bill Johnston, SMART's Director of Marketing. "SMART's new design approach achieves the same high-density with standard 16-Mbit chips, and as the density increases, savings increase."

"Because the price crossover point for 64-Mbit chips vs. 16-Mbit devices is not expected to take place for another 14-18 months, workstation and server manufacturers can reap substantial cost savings by staying with 16-Mbit DRAM-based designs for main memory rather than migrating to the newer, costlier 64-Mbit device," commented Johnston.

"For example, to build a 64MB module using 64-Mbit chips, a module supplier needs 9 DRAM ICs that cost $125 each, putting $1000 to $1200 worth of silicon in each module. However, if the modules are built with 16-Mbit chips, putting nine on each side of two PCBs, the module can be manufactured using only $300 to $400 worth of silicon, since each of the 36 DRAMS at the 16-Mbit density costs about $10 each."

SMART Modular Technologies, Inc. is a leading independent manufacturer of specialty memory modules, standard memory modules, embedded processor modules and PC cards with memory and communications functionality. SMART offers over 400 products under the SMART and Apex Data brand names to leading OEMs and distribution channels in the computer, networking and telecommunications industries.

The Apex Data Products Division is a supplier of award-winning PC card connectivity and wireless solutions. SMART has manufacturing facilities in California, Puerto Rico and Scotland, an additional design center in India and sales organizations worldwide.

CONTACT: SMART Modular Technologies, Inc.

Bill Johnston, 510/623-1231 ext. 104

or

Morgen-Walke Associates, Inc.

Suzanne Craig, Lisa Laukkanen, 415/296-7383 (investor)

Emily Dupree, 212/850-5600 (investor)

Bud Cole, 415/296-7383 (press)