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Court Enhances Atmel Award to $36.5 Million for Willful Patent Infringement by Silicon Storage Technology

SAN JOSE, Calif.--(BUSINESS WIRE)--May 10, 2002--Atmel® Corporation (Nasdaq:ATML - News) announced today that on Tuesday, May 7, 2002, in the matter captioned Atmel Corporation v. Silicon Storage Technology, Inc. ("SST"), in the United States District Court for the Northern District of California, Judge Samuel Conti, after reviewing an earlier jury award to Atmel of $20 million, has enhanced the award to 36.5 million. On April 26, a jury found that Atmel's U.S. Patent Nos. 4,511,811 and 4,673,829 (covering charge pumps for raising the voltage on a conductive line) were valid and willfully infringed by SST. The award enhancement was for willful infringement, and pre-judgment interest, bringing the total award to $36.5M.

Atmel's Chief Litigation and Intellectual Property Counsel, Julie Mar-Spinola, stated, "This enhancement reinforces the position we took years ago, that these patents should have been licensed by SST, as we originally proposed." Atmel's President and CEO, George Perlegos, stated, "We are gratified by the court's findings and the judgment. Atmel will remain diligent in defending its intellectual property rights against those who choose to infringe them."

Ms. Mar-Spinola added, "There remains one additional Atmel patent, U.S. Patent No. 4,451,903 ("Silicon Signature") to be tried against SST. Originally, all three patents were to be tried to the same jury; however, due to time constraints, the one remaining patent will be tried separately in the near future. The court has already determined that SST infringed that patent, and the trial to come will involve only the validity of that patent and damages. The '903 patent was the subject of an earlier exclusion order issued by the International Trade Commission. We hope that the trial on the '903 patent will happen soon so that this long litigation can be concluded and so that Atmel can be compensated monetarily for SST's infringement."

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, SiGe, and high-voltage BCDMOS process technologies.

Note to Editors: Atmel, the Atmel logo and combinations thereof are registered trademarks and others contained herein, are trademarks of Atmel Corporation. Terms and product names in this document may be the trademarks of others.


Contact:
     Atmel Corporation, San Jose
     Julie Mar-Spinola, 408/487-2906
     Fax: 408/487-2615
     jmarspinola@atmel.com

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