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Integrating strategic logic functions such as the ARM processor into MirrorBit technology will be a core foundation for Spansion's secure Logic-on-Flash solutions including the recently announced MirrorBit HD-SIM, a new class of secure, high-capacity SIM card chips, which enables SIM card manufacturers to deliver new solutions for managing distribution of mobile content, securing delivery of applications and protecting digital rights management (DRM).

"The combination of Spansion's Flash memory management expertise, its logic-friendly and cost-effective MirrorBit technology with our high-performance, low-power ARM processor will result in an advanced design solution for our partners," said Mike Inglis, executive vice president of Marketing, ARM. "By licensing the ARM7(TM) family processor and the SecurCore processor, Spansion can expand its high-value Flash memory solutions at economical price points."

This agreement with ARM reinforces Spansion's commitment to delivering highly differentiated Flash memory solutions through its Logic-on-Flash strategy, which involves joint collaboration and co-development with strategic partners to integrate logic blocks into its MirrorBit(TM) Flash memory solutions. With Spansion's expanded standard cell-design methodology and its established MirrorBit technology, the company has the ability to easily include significant amounts of logic -- over 1,000,000 gates -- into its Flash designs.

"We are strategically partnering with companies that can bring increased value to our secure Flash memory solutions," said Tom Eby, executive vice president and chief marketing and sales officer of Spansion. "ARM is a leading provider of processor IP with extensive software support in the wireless market. By integrating the ARM7 family processor and SC100 processor with our MirrorBit technology, we can satisfy a broad range of needs and enable wireless designers to produce secure and cost-effective solutions."

With its new Logic-on-Flash portfolio, Spansion expects to offer its customers innovative and cost-effective solutions based on the efficient integration of logic into its 90-nanometer (nm) process technology. Logic on Flash offers solid performance, low power and a more efficient overall footprint.

About Spansion

Spansion is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in the wireless, automotive, networking and consumer electronics markets. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to developing, designing, and manufacturing Flash memory products and systems. For more information, visit www.spansion.com.

Cautionary Statement This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks that the company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that demand for the company's Flash memory products will be lower than currently expected, including without limitation the upcoming HD-SIM solution; that OEMs will increasingly choose NAND-based Flash memory products over NOR- and ORNAND-based Flash memory products for their applications; that customer acceptance of MirrorBit technology will not continue to increase; that competitors may introduce new memory technologies that may make the company's Flash memory products uncompetitive or obsolete; that the company may not achieve its current product and technology introduction or implementation schedules; that the company will be unsuccessful in executing its strategy of collaborating with strategic partners to integrate logic blocks into its Flash memory solutions; and that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to meet product demand and maintain market share. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the company's Registration Statement on Form S-1.

NOTE: Spansion, the Spansion logo, MirrorBit, ORNAND, and combinations thereof, are trademarks of Spansion LLC. Other names used are for informational purposes only and may be trademarks of their respective owners.

ARM is a registered trademark of ARM Limited. ARM7, SecurCore and SC100 are registered trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc; its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; ARM Consulting (Shanghai) Co. Ltd.; ARM Belgium N.V.; AXYS Design Automation Inc.; AXYS GmbH; ARM Embedded Technologies Pvt. Ltd.; and ARM Physical IP, Inc.

CONTACT: Courtney Brigham of Spansion Public Relations, +1-408-749-5386,
or Email Contact

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