SMART Modular Technologies Introduces Linear and ATA Flash PC Cards with Intel StrataFlash Memory Technology.

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 17, 1997--

-- Breakthrough Doubles Memory Density in Flash PC Cards -- 68-pin Linear Flash Cards Will Deliver up to 64 Mbytes -- 68-pin ATA Flash Cards Promise Densities up to 224 Mbytes

SMART Modular Technologies Inc. (NASDAQ:SMOD) today announced significant incremental memory densities for SMART's dual product lines of both Linear and ATA Flash PC Cards.

This powerful memory density evolution is made possible through application of the advanced Intel StrataFlash(TM) technology development that also is being announced to the marketplace today. By doubling Flash memory density in same-size die, this breakthrough development allows SMART to double immediately the density of its Linear and ATA Flash storage PC Cards.

Intel StrataFlash memory enhances Flash memory by reliably storing multiple bits of information, instead of a single bit, in each transistor cell. Intel StrataFlash memory presently stores two bits in each cell, and the technology provides the potential of storing even more. Multiple bit storage is achieved by varying threshold voltages, and the enhanced higher-density devices can be used in either code or data applications.

Intel initially is introducing Intel StrataFlash memory chips in 32- and 64-Mbit densities. By substituting these devices for earlier 1-bit/transistor chips in its line of 68-pin Linear Flash PC Cards, SMART can extend, with no other change, high-end density from 32 Mbytes to 64 Mbytes.

The new Intel StrataFlash devices also support Common Flash Memory Interface (CFI), an industry specification that enables Linear Flash compatibility across the field of CFI supported vendors.

The same enhancement applies to SMART's line of 68-pin ATA Flash PC Cards, which until now offered a high-density range of 24 Mbytes to 112 Mbytes. The high end is now extended to 224 Mbytes.

Primary applications for SMART's Linear Cards have been PDAs, notebook PCs, networking, and portable medical equipment. SMART's ATA Flash storage PC Card is particularly ideal for small, rugged, low-power application-specific computers used with medical equipment, inventory control, telecommunications, industrial controls, avionics, test & measurement instrumentation, still cameras, notebook computers, PDAs, and tape recorders.

SMART's Multi-Level-Cell(MLC)-based Linear Flash PC Cards are currently priced at $8.50 per MB in OEM quantities. The new ATA Flash PC Cards will be available at $9.00 per MB in OEM quantities.

Bill Johnston, vice president of marketing for SMART, commented, "Intel StrataFlash memory, as implemented in SMART's PC Cards, should accelerate Flash PC Card growth as new applications take advantage of higher-density availability."

Intel StrataFlash memory devices will be available in various packages, including Micro-Ball-Grid Array (MBGA). "MBGA is the wave of the future," said Johnston, "and will be particularly important in the evolution of PC Cards and memory modules designed into handheld and portable equipment."

SMART Modular Technologies Inc. is a leading independent manufacturer of specialty and standard memory modules, Flash memory cards, high performance embedded computer modules, as well as communication card solutions. SMART offers more than 500 products to leading OEMs in the computer, networking, and telecommunications industries.

SMART has manufacturing facilities in California, Puerto Rico, and Scotland, a design center in India and sales organizations worldwide. More information on SMART can be obtained on the Internet at http://www.smartm.com .

CONTACT: SMART Modular Technologies Inc.

Bill Johnston, 510/624-8104

[e-mail]

or

Sterling Communications Inc.

Erica Osman, 408/441-4100

[e-mail]