Spansion Licenses ARM Processor to Expand Its Logic-on-Flash Solutions

Enables Development of Secure, High-Performance Wireless Applications

SUNNYVALE, Calif. -- March 28, 2006 -- Spansion Inc. (Nasdaq: SPSN), one of the world's largest providers of Flash memory solutions, today announced that it has licensed the ARM7TDMI-S(TM) processor and the SecurCore(TM) SC100(TM) processor, enabling Spansion to integrate the ARM(R) processor with its MirrorBit(TM) Flash memory on a single die. With this licensing agreement, Spansion can design, manufacture and distribute solutions based on the integration of the ARM processors and MirrorBit technology, which can be easily combined with other third-party IP, to increase the performance and differentiation of end products in wireless markets.

Integrating strategic logic functions such as the ARM processor into MirrorBit technology will be a core foundation for Spansion's secure Logic-on-Flash solutions including the recently announced MirrorBit HD-SIM, a new class of secure, high-capacity SIM card chips, which enables SIM card manufacturers to deliver new solutions for managing distribution of mobile content, securing delivery of applications and protecting digital rights management (DRM).

"The combination of Spansion's Flash memory management expertise, its logic-friendly and cost-effective MirrorBit technology with our high-performance, low-power ARM processor will result in an advanced design solution for our partners," said Mike Inglis, executive vice president of Marketing, ARM. "By licensing the ARM7(TM) family processor and the SecurCore processor, Spansion can expand its high-value Flash memory solutions at economical price points."

This agreement with ARM reinforces Spansion's commitment to delivering highly differentiated Flash memory solutions through its Logic-on-Flash strategy, which involves joint collaboration and co-development with strategic partners to integrate logic blocks into its MirrorBit(TM) Flash memory solutions. With Spansion's expanded standard cell-design methodology and its established MirrorBit technology, the company has the ability to easily include significant amounts of logic -- over 1,000,000 gates -- into its Flash designs.

"We are strategically partnering with companies that can bring increased value to our secure Flash memory solutions," said Tom Eby, executive vice president and chief marketing and sales officer of Spansion. "ARM is a leading provider of processor IP with extensive software support in the wireless market. By integrating the ARM7 family processor and SC100 processor with our MirrorBit technology, we can satisfy a broad range of needs and enable wireless designers to produce secure and cost-effective solutions."

With its new Logic-on-Flash portfolio, Spansion expects to offer its customers innovative and cost-effective solutions 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 Spansion

Spansion is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in the wireless, automotive, networking and consumer electronics markets. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to developing, designing, and manufacturing Flash memory products and systems. For more information, visit www.spansion.com.

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