Luminary Micro Announces 32-bit Microcontrollers for $1.00 - First to Launch Products Based on the ARM Cortex-M3 Processor

Lead Partner Remained Undisclosed for 18 Months While Stellaris Family in Development; Product Available Now with Full Development Kits

AUSTIN, Texas -- March 27, 2006 -- Luminary Micro (http://www.luminarymicro.com), a fabless semiconductor company that designs, markets, and sells ARM(R) Cortex(TM)-M3 processor-based microcontrollers, announces today the availability of the first members of its Stellaris(TM) family of 32-bit microcontrollers (MCUs), with an entry-level price of $1.00. The Stellaris family is the world's first silicon implementation of the ARM Cortex- M3 processor, and is the first time that ARM, based in the UK, has enabled a start-up company to be a lead licensing partner for one of its microprocessors. The first two members of the Stellaris family -- the LM3S101 and LM3S102 -- are available now.

The Stellaris line of MCUs is targeted at embedded and industrial applications, such as building and home automation; factory automation and control; and industrial control power devices. The combined embedded and industrial markets represent over $1.4 billion in total available market (TAM) opportunities for these products.

"The Luminary Micro team's reputation and track record in innovation and execution made them an obvious choice for the silicon 'debut' of the Cortex-M3 processor," said Mike Inglis, EVP of Marketing, ARM. "Together the Cortex(TM)- M3 processor, the RealView(R) Microcontroller Development Kit and Luminary Micro's implementation provide a pervasive 32-bit MCU solution that will help break down traditional cost barriers between 8/16-bit and 32-bit, enabling embedded developers to consolidate their software platforms and tool chain costs all the way through to entry level designs."

Unprecedented Opportunity to Enter the ARM Architecture for $1.00

For the first time ever, embedded microcontroller system designers can utilize 32-bit performance for the same price as their current 8- and 16-bit microcontroller designs. These designers prefer the ARM architecture because it gives them access to an open architecture of silicon implementations and an expansive third-party vendor network of software tools, operating systems, hardware and support - more than any other processor in the world. ARM has a greater than 80 percent market share in some embedded 32-bit processor markets, with ARM Partners shipping at a rate exceeding 1.5 billion units a year.

MCU applications starting with the Stellaris family have access to a 20x range of instruction set compatible performance, spanning 20MHz Stellaris MCUs to gigahertz Cortex-A8 processor-based solutions from other ARM Partners.

Up and Running in 10 Minutes: From Development Kit to Prototype in One Box

The Stellaris customer buys a fully functional development kit with ready- to-go software and tools designed to get users running in 10 minutes or less. In addition to a Stellaris microcontroller, these kits include Luminary Micro's development kit motherboard and daughterboard; peripheral driver library; documentation, schematics, and example programs; and all cables and jumpers. The motherboard in the development kit supports the entire Stellaris family of microcontrollers, including future members of the family. The boards in the Stellaris development kit have passed the certification and are CE marked, indicating the development kit's conformance to the mandatory European safety requirements.

The development kit also includes full evaluation versions of popular software and hardware development tools from ARM, with the RealView(R) Microcontroller Development Kit, which incorporates the industry-proven Keil(TM) MicronVision development environment, IAR Systems and CodeSourcery (GNU).

According to Luminary Micro's co-founder and CEO Jim Reinhart, it was important to the company that the product be made available only with ready- to-use development kits and silicon in distributor stock.

"We know that many designs are literally abandoned at the concept stage simply because designers are frustrated with incomplete or inadequate development kits," said Reinhart. "That seems like an easy -- and unnecessary -- way to dissatisfy potential customers, and is not going to happen when working with Luminary Micro's products. Luminary Micro's goal is to get customers doing productive work with real silicon and tools as quickly as possible to start the time-to-market clock ticking; giving customers what they need to do that just makes sense."

Software is Key: Save Development Costs, Never Upgrade Again A 2005 industry survey by Embedded Systems Programming indicated that programmers and hardware engineers involved in embedded development overwhelmingly chose a processor for its software and development tools. These developers know that software can account for over 50 percent of product development costs, which can make or break product entry in a competitive industry.

In particular, the industrial and motor control markets are heavily impacted by cost, which is in turn influenced by memory and size. A typical industrial or motor control design customer designs in 10,000 to 100,000 MCUs per year.

Founder and Chief Marketing Officer Jean Anne Booth adds that power- efficient motor control is a key driver for the Stellaris family.

"There are figures indicating that one-half of all electrical power generated in the U.S. is consumed by motors," said Booth. "Sophisticated digital control algorithms can increase motor efficiency dramatically. The Stellaris family brings 32-bit performance, and the ability to support demanding control algorithms, to revolutionary price points. This technology has important implications not just in the U.S. but worldwide."

Luminary Micro's Stellaris family brings two important firsts to the global MCU market. First, the Cortex-M3 processor was developed specifically with the cost-sensitivities of the MCU market in mind. It delivers lower costs in silicon, system and development, and the Stellaris implementation delivers high value performance - 20 MHz, 32-bit performance in areas and at a cost previously thought to be limited to 8- and 16-bit MCUs. Second, further cost savings are realized by avoiding upgrades: by entering the ARM architecture with the Stellaris product family, designers may never have to upgrade architectures or change tools again.

Market of Microcontrollers

According to analyst firm Gartner Dataquest, the 32-bit microcontroller industry quadrupled in revenues in five years, reaching $2.4 billion in 2003. A doubling in size is predicted over the next five years.

ARM responded with the Cortex-M3 processor, which was designed with the MCU market in mind. The Cortex-M3 processor provides the benefits of increased performance and reduced code size.

With the addition of Cortex-M3 processor-based Stellaris MCUs, a 20x breadth of instruction-set compatible performance and cost exists only in the ARM architectural community.

General Product and Technology Description

Stellaris family MCUs are based on the ARM Cortex-M3 processor, the microcontroller member of the ARM Cortex processor family. The Cortex-M3 processor is architected to bring 32-bit to the 8/16-bit MCU space.

Additional enhancements include:

-- Utilizing the ARM Thumb(R)-2 instruction set, combining 16- and 32-bit instructions to improve code density and performance, optimized over earlier 16-bit Thumb instructions

-- Extends ARM7(TM) family processor capabilities in critical MCU applications with a 5x improvement in MIPS/watt, providing real-time interrupt response capability, and predictable deterministic behavior

-- Greater than 50 MIPS with a demonstrable 20x performance roadmap in the Cortex processor family, allowing for a "no-worry" migration path

-- Best-in-industry development environment and debug tools

Both the LM3S101/LM3S102 feature:

-- 32-bit RISC Performance

* 20-MHz operation

-- On-Chip Memory

-- General-Purpose Timers, with one available as Real-Time Clock (RTC) capability

-- Watchdog Timer

* 32-bit down counter and separate watchdog clock with an enable

-- Synchronous Serial Interface (SSI)

* Motorola SPI-compatible, TI synchronous serial-compatible, and National Semiconductor MICROWIRE(TM)-compatible modes

-- UART

* Fully programmable 16C550-type UART

-- Analog Comparators

-- GPIOs

-- Power

-- Flexible Reset Sources

* Brown-out (BOR) detector alerts to system power drops

-- Additional features include a 28-pin SOIC package, available lead-free only (RoHS compliant)

* Commercial and industrial operating temperatures

The LMS3102 also features an I2C bus with transmission speed up to 100 Kbps in Standard mode and 400 Kbps in Fast mode and interrupt generation, making it ideal for stepper motors. Both devices are also ideal for factory automation and control; industrial control power devices; and building and home automation applications.

Availability - Now!

Alpha customers are currently designing in Luminary Micro products. Full development kits, including applications software and evaluation versions of popular software tools, are available now. Small-quantity orders of LM3S101 and LM3S102 silicon are also available now with volume production in Q306. Orders may be placed at http://www.luminarymicro.com or through Mouser at http://www.mouser.com. Contact Luminary Micro at 1-512-279-8800 or email sales@luminarymicro.com for more information.

Additional Stellaris family products will be announced later this year.

About Luminary Micro and Stellaris

Founded in 2004, Luminary Micro, Inc. designs, markets and sells ARM Cortex-M3-based microcontrollers (MCUs). Austin, Texas-based Luminary Micro is the lead partner for the Cortex-M3 processor, delivering the world's first silicon implementation of the Cortex-M3 processor. Luminary Micro's introduction of the Stellaris(TM) family of products provides 32-bit performance for the same price as current 8- and 16-bit microcontroller designs. With entry-level pricing at $1.00 for an ARM technology-based MCU, Luminary Micro's Stellaris product line allows for standardization that eliminates future architectural upgrades or software tools changes. Contact the company at 1-512-279-8800 or email press@luminarymicro.com for more information. Complete press kits including photos are available for download at http://www.LuminaryMicro.com/Press/27Mar06Launch.