ROUSSET, France - Netlist Re-Targeting Reduces Design Cost, No Royalties on Atmel IP
Blocks, Low Royalties on Third-Party IPs, Low Mask Costs on Mature Process
Technology

Atmel(R) Corporation (Nasdaq: ATML) announced today a low-cost
re-targeting flow for migrating designs from its low entry-cost AT91CAP
ARM(R)-based customizable microcontrollers to its ASICs that minimize unit
cost in high volume. This flow, based on automated netlist re-targeting that
preserves system functionality, enables customers to benefit from the low
development costs and rapid prototype availability of the CAP(TM) and then,
once the product has been proved in its application, transition it to a
high-volume, unit-cost-optimized ASIC at minimal additional cost and risk.

Atmel provides all its internally-developed IP blocks that are
implemented in the CAP fixed architecture or metal programmable block at no
charge, and is able to offer competitive prices on third-party IPs because
they are supplied to multiple customers. This provides a wide range of
pre-qualified functionality, ranging from standard network/connectivity IPs
for Ethernet, USB, and CAN, to leading-edge wireless communications and data
compression technologies such as UWB and H.264 in the coming months. In
addition, the mature process technology that Atmel uses to manufacture its
ASICs brings the benefit of low mask costs. Taken together, these factors
significantly reduce the cost of development of a high-volume,
microcontroller-based system-on-chip that is optimized for a single
application.

Michel Le Lan, Atmel’s Marketing Director for ASICs, commented, “The
current economic crisis is exerting enormous downward pressure on costs.
Atmel is responding to this situation by providing a low-entry-cost product,
the CAP customizable microcontroller, which enables customers to bring their
innovative products to market in spite of the difficult circumstances. They
can cost-effectively develop and sell their CAP-based products in medium
volumes, and then, as we emerge from the crisis, ramp these products into
volume at minimal additional cost and risk. This gives Atmel and its growing
community of CAP customers a strategy for the present and a roadmap for the
future.”

Availability and Price

Atmel’s CAP-to-ASIC re-targeting flow is available now. Typical NRE cost,
covering netlist re-targeting, Place&Route, mask manufacture, prototype
fabrication, test and packaging in 130nm technology is less than US$300K.

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.

(c) 2009 Atmel Corporation. All Rights Reserved. Atmel(R), Atmel logo and
combinations thereof, and others, are registered trademarks, and CAP(TM) and
others are trademarks of Atmel Corporation or its subsidiaries. ARM(R) is a
registered trademark of ARM Ltd. Other terms and product names may be
trademarks of others.

Information:

Atmel’s AT91CAP product information may be retrieved at:
www.atmel.com/products/at91cap/default.asp

Press Contacts:
Peter Bishop, Communications Manager, Atmel Rousset
Tel: +33-(0)4-42-53-61-50, Email: peter.bishop@atmel.com
Helen Perlegos, Public Relations
Tel: +1-408-487-2963, Email: helen.perlegos@atmel.com

Source: Atmel Corporation

Peter Bishop, Communications Manager of Atmel Rousset, +33-(0)4-42-53-61-50, peter.bishop at atmel.com, or Helen Perlegos, Public Relations of Atmel, +1-408-487-2963, helen.perlegos at atmel.com