Spansion to Integrate Logic IP to Expand Flash Memory Solutions; Spansion Signs Joint Collaboration and Co-Development Agreement With M-Systems.

SUNNYVALE, Calif. -- Spansion LLC, the Flash memory venture of AMD (NYSE:AMD) and Fujitsu Limited (TOKYO:6702), today announced its plans to create highly differentiated Flash memory solutions by jointly collaborating and co-developing with strategic partners to integrate logic blocks into its MirrorBit(TM) Flash memory solutions -- the basis for a new line of products called Logic on Flash. The first such joint collaboration and co-development agreement was announced today with M-Systems Flash Disk Pioneers Ltd. (Nasdaq:FLSH).

Semiconductor makers today integrate a small amount of logic with memory on a single die or integrate a small amount of memory with logic. With Spansion's expanded standard cell design methodology and its established MirrorBit technology, the company has the ability to include significant amounts of logic into its Flash designs.

To utilize its robust designs and technology, Spansion plans to partner and secure rights to a range of third-party IP logic modules, such as memory controllers, power management modules, I/O interfaces including USB 2.0 and MMC, which all can be integrated with its MirrorBit technology.

"By combining Spansion's logic-based design flow and third-party IP, we can offer the industry value-added Flash memory solutions with enhanced performance and integration at economical price points," said Bertrand Cambou, president and CEO of Spansion.

"M-Systems believes in strong, viable partnerships with leading companies such as Spansion for the development of innovative products. The fruit of this joint collaboration will employ our flash memory management expertise and state-of-the-art security, in order to bring real value to our customers. We are excited about our cooperation with Spansion and believe that the jointly developed products will bring unique benefits for our target audiences, and specifically, for mobile network operators," said Dov Moran, president and CEO of M-Systems.

Integration has been the key to cost reductions for many customers for years. Spansion has shipped Multi-chip package (MCP) memory devices and now supports Package-On-Package (POP) technology. With its new Logic on Flash products, Spansion expects to offer its customers another innovative and cost-effective solution based on the efficient integration of logic into its 90-nanometer (nm) process technology. Logic on Flash offers solid performance, low power and a more efficient overall footprint.

About MirrorBit Technology

MirrorBit technology is Spansion's innovative Flash memory technology that features high yields and low-cost structure compared to traditional floating gate technology. MirrorBit is manufactured using a non-conductive storage element and uses 40 percent fewer of the most critical manufacturing steps than floating gate technologies, leading to higher yields and ultimately higher densities and higher performing products produced cost effectively.

About Spansion

Spansion, the Flash memory venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to developing, designing, and manufacturing Flash memory products. In fiscal 2004, Spansion's total net sales were approximately $2.3 billion. The company offers the broadest NOR Flash memory portfolio in the industry, for use in the wireless, automotive, networking, telecommunications and consumer electronics markets. The company's portfolio is supported by a worldwide network of advanced manufacturing facilities, system-level expertise and dedicated design support, and an unwavering commitment to our customers' success. Information about Spansion(TM) Flash memory solutions is available at http://www.spansion.com.

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks that the company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that demand for the company's Flash memory products will be lower than currently expected; that OEMs will increasingly choose NAND-based Flash memory products over NOR- and ORNAND-based Flash memory products for their applications; that customer acceptance of MirrorBit technology will not continue to increase; that there will be a lack of customer acceptance of ORNAND-based Flash memory products; that competitors may introduce new memory technologies that may make the company's Flash memory products uncompetitive or obsolete; that the company may not achieve its current product and technology introduction or implementation schedules; and that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to meet product demand and maintain market share. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the company's Registration Statement on Form S-1 and AMD's Quarterly Report on Form 10-Q for the quarter ended September 25, 2005.

Spansion, the Spansion logo, MirrorBit, and combinations thereof, are trademarks of Spansion LLC. AMD is a trademark of Advanced Micro Devices, Inc. Other names used are for informational purposes only and may be trademarks of their respective owners.