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Matrix Semiconductor Announces Second Generation 3-D Integrated Circuit Memory Technology

Focuses On Mobile Devices -- Targets Portable Video and Audio, Portable Games, Advanced Toys, and the Growing Installed Base of Multimedia Mobile Phones and Handheld Computers

SANTA CLARA, Calif.—(BUSINESS WIRE)—Nov. 8, 2004— Matrix Semiconductor, Inc. today announced that it has advanced its unique technology for manufacturing three-dimensional integrated circuits, an innovation that produces low-cost, high-density, semiconductor memory products by building multiple layers of memory inside each chip, making the most efficient use of a silicon wafer. Matrix(R) 3-D Memory (3DM) is a programmable, non-volatile memory and the first product line based on Matrix Semiconductor's technology.

The second generation of Matrix 3DM skips forward on the semiconductor industry's process roadmap, moving from the original 0.25-micron design rules to 0.15-micron. By using proven manufacturing techniques with the third dimension, Matrix derives lower cost and more components per wafer than any other comparable memory product on today's market.

By offering the ease of one-time programmability, Matrix 3DM is able to cut production lead times for its customers from months to days relative to Mask ROM. This allows consumer electronics manufacturers and mobile content publishers to manage their supply chains more efficiently and properly align their businesses with market demand. In October 2004, Mattel was the first to disclose that Matrix 3DM was the publishing technology chosen for the Juice Box(TM), a portable media player targeted at the "tween" demographic.

Matrix Semiconductor has observed that conventional technologies for publishing digital content for advanced toys and portable digital devices do not meet many industries' requirements of low cost, high density, and fast turn-around time. These conventional technologies include Mask ROM and Flash Memory. The former is inflexible, requiring long lead times for customers, while the latter can be programmed close to market demand but remains expensive. Matrix 3DM offers the right combination of low-cost storage and fast time-to-market.

"By targeting Matrix 3DM at content publishing for mobile devices, we aim to do for portable devices what the PC CD-ROM did for multimedia content distribution in the early 1990's -- offering a convenient, cost-effective, standards-compatible, way to deliver and share content for portable audio-video players, portable games, advanced toys, mobile phones, and handheld computers," said Dennis Segers, president and chief executive officer of Matrix Semiconductor. "We have closely analyzed the cost and supply-chain considerations related to publishing content and we are confident that Matrix 3-D Memory is the only technology that properly addresses the publishing needs of our target customers."

In August 2004, Matrix Semiconductor became the first programmable read-only memory (ROM) technology deemed completely compliant with the MultiMediaCard (MMC) standard by the MultiMediaCard Association, demonstrating that Matrix 3DM is ready for use in the emerging portable computing infrastructure. According to industry estimates, shipments of mobile handsets and handheld computers that feature memory card slots will double to 200 million by 2006. Matrix 3DM can be incorporated into any memory card format.

About Matrix Semiconductor

Matrix Semiconductor, Inc. is the creator and developer of the world's first three-dimensional integrated circuits. Matrix's first product, Matrix(R) 3-D Memory (3DM), is a low cost, high density line of permanent, programmable, non-volatile memory that is compatible with existing standards. Matrix 3-D Memory accelerates time-to-market for publishers of digital content and is targeted for use in portable consumer electronic devices.

Privately held, Matrix is headquartered in Santa Clara, California. Additional information may be found at: http://www.matrixsemi.com

MATTEL, JUICE BOX and associated trademarks are owned by Mattel, Inc. (C) 2004 Mattel, Inc. All Rights Reserved.



Contact:
Matrix Semiconductor
Nivita Banthia, 408-869-8943
nbanthia@matrixsemi.com
or
Dryden Marketing Group (For Matrix)
Phil Gomes, 510-769-9456
phil@drydenmg.com

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