BMW Signs SmartShunt Technology Patent License Agreement With Microchip Technology

CHANDLER, Ariz., Jan. 11, 2006 — Microchip Technology Inc., a leading provider of microcontroller and analog semiconductors, today announced the signing of a patent license agreement with the German auto maker BMW AG. The agreement provides BMW access to Microchip-owned patents covering the use of microcontrollers/microprocessors in battery-monitoring sensors, including conventional 12V vehicles. BMW is a leader in the design and implementation of battery and power-monitoring sensors that track energy use and battery condition in automotive applications.

Microchip acquired the licensed technology as part of the PowerSmart^® acquisition in 2002.

Microchip also manufactures key semiconductor components used in power sensors, including voltage regulators, memory chips and advanced microcontrollers needed for data transmission. The integration of digital components with traditional analog current sensors is the subject of the licensed patents.

"The significant growth of electronics in vehicles has created an expanding need for power management in vehicles" said Ganesh Moorthy, vice president of Microchip’s Advanced Microcontroller and Memory Division. "By making the SmartShunt^® technology patents available for license, we hope to enable the expanded use of integrated current sensors in all automotive designs. BMW is a leader in the use of this type of sensor, and we expect to see other automakers follow their lead."

About Microchip Technology

Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller and analog semiconductors, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.