Crocus and Morpho Sign Agreement to Develop Smart Cards Based on Magnetic-Logic-Unit (MLU) Technology

GRENOBLE, France -- Nov. 10, 2011 -- Crocus Technology, a leading developer of magnetically enhanced semiconductors, and Morpho (Safran group), a leading supplier of identification, detection and e-document solutions, today announced an agreement to develop and commercialize the world's first smart card based on Crocus' Magnetic-Logic-Unit (MLU) technology. The agreement enables the companies to collaborate on a new breed of smart cards, which integrate Crocus' disruptive MLU technology with Morpho's industry leading smart card architecture.

Under the terms of the agreement, Crocus will develop an MLU-based secure microcontroller which Morpho will integrate into its smart card products.  The secure microcontroller product will be compliant with the latest quality and security standards.

Crocus' MLU, based on a revolutionary magnetics architecture, is a scalable evolution of its Thermally Assisted Switching™ (TAS) technology. MLU enables practical implementation of advanced logic and memory capabilities, a first for the industry.  It is anticipated that the increased security, speed, reliability and cost efficiency offered by Crocus' MLU technology will provide significant advantages for Morpho's smart cards. Previous generations of smart card designs have been based on Flash memory technology, and this application of MLU is a first in the $20+ billion smart card and microcontroller semiconductor market segments.

"This partnership offers a unique opportunity to combine Morpho's industry leading smart card expertise with our breakthrough MLU innovation," said Dr. Bertrand F. Cambou, executive chairman of Crocus Technology. "We are convinced that together we will be able to offer next generation smart cards that are more robust, tamper-proof and cost effective"

Crocus's MLU technology offers significant advantages over competing memory technologies including low power usage, high speed, unlimited endurance (read and write cycles), inherent non-volatility, and provides a first-of-its-kind logic capability (including Match–In-Place™ for secure authentication.)

About Crocus Technology

Crocus is a leading developer of magnetic semiconductor technology for dense, non-volatile, high-speed, scalable chip solutions used in general and special purpose applications. The company's Magnetic Logic Unit™ (MLU) architecture, featuring a revolutionary self-reference technique, is a scalable evolution of Crocus' patented Thermally Assisted Switching™ (TAS) technology. MLU enables practical implementation of advanced magnetic logic and memory capabilities.  Crocus' first generation of magnetic technology was originally conceived at the Grenoble, France-based Spintec, a world leading magnetic research laboratory affiliated with two leading French labs, CEA and CNRS. It was further developed for production at SVTC in California and is in its final phase of implementation at Tower Jazz semiconductor. In October 2011, Crocus announced a joint development agreement with IBM to further advance the technology, focusing on advanced development of the MLU architecture. Crocus' technology is covered by a comprehensive patent portfolio. In May 2011, Crocus and RUSNANO formed a joint venture, Crocus Nano Electronics (CNE), to build and operate an advanced manufacturing facility for magnetic semiconductors. Find Crocus at: www.crocus-technology.com.

About Morpho

Morpho, a high-technology company in the Safran group, is one of the world's leading suppliers of identification, detection and e-document solutions. Morpho is specialized in personal rights and flow management applications, in particular based on biometrics, a sector in which it is the world leader, as well as secure terminals and smart cards. Morpho's integrated systems and equipment are deployed worldwide and contribute to the safety and security of transportation, data, people and countries.  Through its e-Documents Division,Morpho is a pioneer and a global leader in the smart card industry. It develops and implements cutting-edge technology to turn the vision of unbounded mobile communications and integrated digital security into a reality. The Division's portfolio includes hardware, software, consulting and services, all focused on smart cards for the benefit of consumers and providers in the telecommunications, health, identification and banking areas. For more information: www.morpho.com/e-documents or www.safran-group.com.