Atmel Sells Network Storage Products to MoSys Inc.

SAN JOSE, Calif. -- July 11, 2007 -- Atmel® Corporation  today announced that it sold its network storage products group to MoSys Inc. on July 2, 2007 for an undisclosed sum, which included cash and the assumption of certain liabilities. The products include SoC (system-on-chip) semiconductor solutions targeted for the network storage and HD DVD marketplaces. As part of the transaction, Atmel will transfer the products and related intellectual property to MoSys, and over 100 current Atmel employees located in various sites worldwide will become employees of MoSys. None of the products has been released to production, thus there is no revenue transferred.

In December of 2006, Atmel announced a set of strategic initiatives including the company's intention to focus its resources on high-growth, high-margin proprietary product lines and re-deploy resources away from non-core product areas. Since that time Atmel has curtailed investment in several product areas and the sale of this product line is part of Atmel's ongoing plans to focus resources on its core products and technologies in order to accelerate Atmel's growth and profitability.

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 provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.