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Cypress and Simtek sign expanded agreement.

TELECOMWORLDWIRE-31 March 2006-Cypress and Simtek sign expanded agreement(C)1994-2006 M2 COMMUNICATIONS LTD

Simtek Corporation (OTC Bulletin Board: SRAM), a supplier of monolithic non-volatile static random access memory (nvSRAM) integrated circuits, announced on Thursday (30 March) the signing of a licence and development agreement with Cypress Semiconductor Corp (NYSE: CY).

This new agreementexpands the agreement the two companies signed in May 2005.

Under the terms of the agreement Cypress will retain the right to include nvSRAM functionality on future programmable system-on-chip (PSoC) and customised integrated circuits originally granted in the May 2005 agreement. The new agreement includes clearly defined royalty payments to Simtek for the use of its SONOS-based nvSRAM intellectual property.

In addition Simtek is granted the right to use certain intellectual property of Cypress in developing future generation nvSRAM products, including the jointly developed 0.13u SONOS-based CMOS process, advanced SRAM IP, design-related IP, design-for-manufacturability know-how; and other IP related to Cypress' advanced CMOS manufacturing processes and procedures.

The companies have also agreed to broad manufacturing support terms that will provide Simtek with a range of industry-leading manufacturing skills and know-how to enable cost-effective manufacturing of leading-edge SONOS nvSRAMs, Simtek said.

Upon signing the agreement Simtek received USD2m from Cypress and will receive additional payments of USD1m on 30 June 2006 and 31 December 2006.

The agreement also calls for Simtek to issue warrants to Cypress to purchase 20m shares of its common stock at an exercise price of USD0.75 per share.

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Article Type:Brief article
Geographic Code:1USA
Date:Mar 31, 2006
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