Atmel Announces Intention to Sell Nantes, France Semiconductor Fab

SAN JOSE, Calif., May 17 /PRNewswire-FirstCall/ -- Atmel(R) Corporation (NASDAQ: ATML), a global leader in the development and fabrication of advanced semiconductor solutions, announced today it's intentions to sell its semiconductor manufacturing facility in Nantes, France.

The Atmel facility, owned since 1998, is a 6-inch wafer fab with a current production capacity of 2500 wafers per week. It manufactures semiconductors in BiCMOS, CMOS and non-volatile technologies in line widths down to 0.5 microns and is 0.35 micron-capable.

"As we look to focus on more advanced technologies and to reduce our overall cost structure, we have decided to sell our Nantes facility," stated George Perlegos, Atmel's President and Chief Executive Officer. "The intended sale of this facility represents an early step in our efforts to return Atmel to profitability. Additionally, we are diligently working to determine several more actions that we could take in order to help us operate more efficiently, reduce our labor force and bring down our costs."

Interested parties should contact Gaetan Beaulieu, Managing Director of Foundry and Operations at +33 2 40181997 for more information.

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 Are(R).

NOTE: Atmel(R), logo and combinations thereof are registered trademarks, and Everywhere You Are(R) and are the trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

     Steven Horwitz, Director, Investor Relations
     Phone:  +1-408-487-2677, Email:  
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CONTACT: Steven Horwitz, Director, Investor Relations of Atmel
Corporation, +1-408-487-2677, or Email Contact

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