Atmel Licenses Industry-Leading Gigabit Ethernet Physical Layer Core From National Semiconductor To Power Its Next-Generation Of High Performance System-on-Chip

Powering up the Next Generation of High Performance and Highly Integrated System-on-Chip

SAN JOSE, CA, December 20, 2004 . . . Atmel® Corporation (Nasdaq: ATML), a global leader in the development and fabrication of advanced semiconductor solutions, announced today the completion of a licensing agreement with National Semiconductor Corporation for a Gigabit Ethernet Physical Layer Core. National's Gigabit Ethernet Physical Layer Core will be used by Atmel to design next generation server connectivity products and highly integrated System-on-Chip products, enabling Atmel's customers to be the first to market the next generation of network connectivity products.

As a leader in the design and manufacture of storage and broadband communication solutions, Atmel is committed to deliver to its customers a higher performance solution at a lower cost for the next generation of switches for network connectivity. This agreement will leverage National's years of experience in analog design for the communication market and its field proven architecture that delivers gigabit per second performance, and Atmel's existing superior High Performance Low Cost (HPLC) architecture switch technology. Atmel's Network Storage Products Business Unit will introduce a new generation product family that enables customers an easy migration to highly integrated System-on-Chip solutions.

The licensing agreement will enable Atmel to embed the high performance analog functionality of National's Single Port Gigabit Ethernet PHY Core with its Ethernet MACs, network processors and transmission control protocol/Internet protocol (TCP/IP) offload engines for a new line of products. "The relationship between Atmel and National Semiconductor is a strategic milestone toward revolutionizing the networking industry. National Semiconductor is a technology leader in the development of analog physical layer devices, and Atmel is a leader in storage and broadband communications solutions. Atmel's upcoming server connectivity products will integrate National's Gigabit Ethernet PHY to deliver the highest level of performance availability and reliability with the lowest power consumption," said Mehdi Bathaee, General Manager and Managing Director of Atmel's Network-Storage Business Unit.

"National Semiconductor's experience with analog building blocks and Ethernet will enable Atmel to produce a high-performance and highly integrated solution that reduces power consumption and system costs for their customers,” said Mike Noonen, Vice President of National Semiconductor's Communications and Computing Group. "Atmel's customers will benefit with robust solutions that will provide a smooth and easy path to upgrading their high-speed Ethernet applications,” he added.

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 AreSM.

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