Atmel Expands Scottish Site to Support Increasing Market Share in Smart Card Chips

SAN JOSE, Calif., March 14 /PRNewswire-FirstCall/ -- Atmel(R) Corporation (NASDAQ: ATML), a global leader in the development and fabrication of advanced semiconductor solutions, announced today the opening ceremony for the second phase expansion of their Smart Card integrated circuit design and test center in East Kilbride, Scotland.

The opening ceremony was performed by Deputy First Minister and Minister for Enterprise, Jim Wallace, who said, "When I visited Atmel's San Jose HQ in October 2004, I was delighted to be able to welcome its planned expansion at East Kilbride. I am therefore extremely pleased to now have the opportunity to officially open this new expansion which will see the creation of 80 new jobs and which is supported with the offer of pounds sterling 1.2m Regional Selective Assistance. Atmel has more than doubled its workforce since setting up in Scotland in 1999 and this latest expansion is further evidence of Scotland's ability to provide the quality of workforce which such an important high-tech inward investor requires. Scotland is not simply providing businesses with an environment to function efficiently -- this is a place where firms can thrive."

Andy Bear, Operations Director at the Atmel EK Site said, "We are very grateful for the support and encouragement given by both Scottish Enterprise and the Scottish Executive, which helped to secure the ongoing investment by Atmel in Scotland."

The Atmel East Kilbride site now employs 170 people, which means that over 100 high quality new jobs have been created since the company took over the business five years ago. This has been achieved during a very difficult period for the worldwide semiconductor industry that has seen a significant reduction in the number of people employed in the sector in Scotland.

"The development of the EK site is closely linked to the remarkable success of the Atmel Smart Card chip business," said Lucien Brau, Atmel's Smart Card IC Division Director. "The company is pleased to continue developing the operation in Scotland because of the excellent contribution to the business made by the employees on the site."

The business has achieved revenue growth of over 700% in five years and has moved from the 5th to the 2nd largest worldwide supplier of the chips that are used in mobile phone SIM cards, chip and PIN bankcards, electronic passports and many other electronic security applications.

The new facilities in East Kilbride will enable further growth of the Smart Card IC business by increasing the size of the integrated circuit design center and increasing capacity in the test and wafer thinning operation at the site. The increased capacity in both design and manufacture is required to support the rapidly increasing customer demand for the Atmel Smart Card IC product line.

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. Focused on consumer, industrial, security, communications, computing and automotive markets, Atmel ICs can be found Everywhere You Are(SM).

NOTE: Atmel(R), logo and combinations thereof, are registered trademarks, and Everywhere You Are(SM) are the trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

Information:

For further information on Smart Cards, go to http://www.atmel.com/products/SCR/ .

   Press Contacts:
   Andy Bear, Operations Director - Atmel East Kilbride
   Phone: +44 (0) 1355 803000, Email: andy.bear@ekb.atmel.com

   Clive Over, Director of Press Relations - USA and Asia
   Phone: +1 408 451 2855, Email:  cliveover@atmel.com

   Veronique Sablereau, Corporate Communications Manager - Europe
   Phone: +33 1 30 60 70 68, Fax: + 49 71 31 67 24 23
   Email:  veronique.sablereau@atmel.com

CONTACT: Andy Bear, Operations Director - Atmel East Kilbride,
+44 (0) 1355 803000, or andy.bear@ekb.atmel.com, or Clive Over, Director of
Press Relations - USA and Asia, +1-408-451-2855, or cliveover@atmel.com, or
Veronique Sablereau, Corporate Communications Manager - Europe,
+33 1 30 60 70 68, or fax: +49 71 31 67 24 23, or
veronique.sablereau@atmel.com, all of Atmel Corporation

Web site: http://www.atmel.com/