Atmel Produces Fourth-generation ARM-based System-on-Chip for M-Systems' Smart DiskOnKey Platform in Record Time

Latest step in long-standing partnership, next-generation SoC already in design

Rousset, France and Fremont, USA - September 15, 2003 . . . Atmel® Corporation (Nasdaq: ATML) announced today the volume production of Atmel's fourth-generation ARM®- based System-on-Chip (SoC). The exclusive fourth-generation controller, called the DOK T4 which includes M-Systems technology, supports the total functionality and security of the M-Systems industry-leading Smart DiskOnKey® Platform. In a record period of less than one year, the start of design to the initial shipping of units has been achieved.

The first-generation DiskOnKey was supported by an Atmel ARM-based microcontroller standard product complemented by a gate array and discrete components; the following three generations have been powered by Atmel ASICs of increasing complexity. The additional features provided by each successive generation, coupled with a reduction in unit price, have helped M-Systems to gain and hold its market-leading position in the fast-growing and highly competitive market for portable data storage systems. The latest generation DiskOnKey T4 Platform features the highest USB 2.0 drive speeds currently available and industry-leading data protection including DES/Triple DES, SHA-1 and RSA PKI encryption.

The rapid ramp-up of the fourth-generation product validates all the key elements of Atmel's SiliconCITY™ SoC development strategy:

Close engagement with the customer, in order to align Atmel's offer with M-Systems' requirements.
Secure and efficient joint Atmel/M-Systems design flow.
The use of ARM-based architecture and emulation platforms to reduce the design cycle time and ensure right-first-time silicon.
Use and re-use of qualified blocks, some developed by M-Systems and some developed by Atmel.
Fast ramp-up to volume production thanks to close co-operation between the design teams and Atmel's Product Engineering team.

A fifth-generation System-on-Chip is currently in development that will include an even higher level of data security and numerous application-specific features.

Commented Didier Sroussi, Atmel's ASIC Marketing Manager, "We are very proud to collaborate with M-Systems on such an innovative and revolutionary product line as DiskOnKey. Working together on five successive generations of this product demonstrates Atmel's success in meeting M-Systems' aggressive targets of performance, time-to-market and cost. This is a concrete result of the SiliconCITY System-on-Chip strategy that we have been developing and refining over a number of years. As we move to the next generation with M-Systems we shall be looking to leverage this business model to include other similar partnerships."

"By incorporating Atmel's technology into our Smart DiskOnKey platform we have been able to create a device that exceeds market expectations," said Blaine Phelps, Director of Worldwide Marketing for the DiskOnKey Business Unit. "Our award-winning DiskOnKey family of products has achieved market leadership through the aid of Atmel's technology, giving us the flexibility to create advanced applications using our DOK T4 ASIC that provides our customers with security, personalization and unmatched performance."

About Atmel

About Atmel Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, bipolar SiGe, and high-voltage BCDMOS process technologies.

About M-Systems

M-Systems (Nasdaq: FLSH) is a leader and innovator of flash-based data storage products known as flash disks. M-Systems' flash disks provide the functionality of a mechanical hard drive in a silicon chip. M-Systems' products are based on its patented TrueFFS® technology and target applications in a vast array of markets, including connected devices, mobile and telecom. M-Systems' products include the DiskOnChip®, DiskOnKey® and Fast Flash Disk (FFD™) product families.

© Atmel Corporation 2003. All rights reserved. Atmel, the Atmel logo and combinations thereof are registered trademarks and others contained herein, are trademarks of Atmel Corporation or its subsidiaries. SiliconCITY is a trademark of Atmel Corporation. M-Systems, TrueFFS, Fast Flash Disk (FFD), DiskOnChip and DiskOnKey are registered trademarks and trademarks of M-Systems Flash Disk Pioneers, Ltd. ARM is a registered trademarks of ARM Limited. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; and ARM Consulting (Shanghai) Co. Ltd. Other terms and product names in this document may be the trademarks of others.

Information

Atmel's SiliconCITY System-on-Chip product information may be retrieved at: http://www.atmel.com/products/ASIC/

For more information about M-Systems, please visit the M-Systems Web site at: www.m-sys.com