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Spansion Announces 65nm MirrorBit(R) ORNAND Flash Memory Solutions for Wireless Handsets | Cypress Semiconductor

Spansion Announces 65nm MirrorBit(R) ORNAND Flash Memory Solutions for Wireless Handsets

Last Updated: January 18, 2007

SUNNYVALE, Calif., Jan 18, 2007 -- Spansion Inc. (Nasdaq: SPSN), the world's largest pure-play provider of Flash memory solutions, today announced it is sampling 65 nanometer (nm) MirrorBit(R) ORNAND(TM) solutions, optimized for data storage in high-end, multimedia wireless handsets. Manufactured at Spansion's flagship Fab 25 facility in Austin, Texas, Spansion(R) 65nm MirrorBit technology is the foundation for a compelling high-density Flash memory roadmap for wireless applications. The 65nm MirrorBit family for wireless handsets will be in production in the early portion of the third fiscal quarter of 2007.

Featuring densities of 512Mb, 1Gb and 2Gb, the 65nm MirrorBit ORNAND family enables wireless OEMs to create rich multi-media capabilities in their next-generation handsets, including digital television streaming, multi-shot photography with up to 5-megapixel pictures and CD-quality audio. The Spansion Multi-chip Packages (MCPs) solution combines MirrorBit NOR and MirrorBit ORNAND and enables faster boot time, with improved power savings when in standby mode compared to pure code shadowing solutions.

"The introduction of the 65nm MirrorBit ORNAND family marks an important technology milestone for Spansion, achieving our commitment of one technology node per year," said Bertrand Cambou, president and CEO of Spansion. "Transitioning to 65nm MirrorBit technology will strengthen our high-end offering through greater value solutions with higher densities at lower costs, and will provide wireless customers with more advanced capabilities, giving them the ability to create even more innovative, high-end multi-media handsets."

MirrorBit ORNAND complements Spansion's leading MirrorBit NOR Flash memory, which offers high-read performance and reliability. In wireless multi-media applications, MirrorBit ORNAND solutions deliver the compelling cost structure of traditional NAND solutions. It offers interface, pin-out and software compatibility with Spansion's 90nm MirrorBit ORNAND technology.

Spansion also expects to leverage 65nm MirrorBit technology for MirrorBit NOR and MirrorBit Quad devices in a variety of densities to meet the code and data storage requirements for consumer, industrial and digital-rich content applications. As part of Spansion's strategy to accelerate technology transitions, Spansion has already started 45nm MirrorBit development at 300mm in Spansion's "SDC" R&D center, the Submicron Development Center located in Sunnyvale, California with first wafers expected in the first fiscal quarter of 2007. Spansion is planning 45nm MirrorBit production on 300mm wafers at its new SP1 facility in mid 2008 and intends to manufacture 65nm at Fab 25 and SP1 as early as possible.

About MirrorBit Technology

Spansion's MirrorBit technology delivers value-added code and data storage solutions for customers across the integrated electronics category. When compared with floating-gate NOR technology, MirrorBit technology offers a simpler memory cell, which requires fewer critical manufacturing steps to produce. Compared to traditional floating gate, MirrorBit technology offers higher yields and scales more easily to higher densities. Spansion recently announced its MirrorBit Quad technology, the world's first four-bit-per-cell Flash memory, with plans for a variety of different interfaces and capabilities that will expand Flash memory storage capabilities.

About Spansion

Spansion is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing and selling Flash memory solutions. For more information, visit www.spansion.com.

Cautionary Statement

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the expectation that the 65nm MirrorBit family for wireless handsets will be in production in the early portion of the third fiscal quarter of 2007, the plans to leverage 65nm MirrorBit technology for MirrorBit NOR and MirrorBit Quad devices in a variety of densities to meet the code and data storage requirements for consumer, industrial and digital- rich content applications, the anticipated development of 45nm technology on 300mm wafers in the first fiscal quarter of 2007, and the expected 45nm MirrorBit production on 300mm wafers at the SP1 facility in mid 2008 and 65nm MirrorBit production on 300mm as early as possible. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks that the company considers to be the important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that demand for the company's Flash memory products will be lower than currently expected; that the company will lose rights to key intellectual property arrangements and be subject to intellectual property infringement claims; that customer acceptance of MirrorBit technology will not continue to increase; that OEMs will increasingly choose NAND-based Flash memory products over NOR- and MirrorBit ORNAND-based Flash memory products for their applications; that competitors may introduce new memory or other technologies that may make our Flash memory products uncompetitive or obsolete; that there will be a lack of customer acceptance of MirrorBit ORNAND- or MirrorBit Quad- based Flash memory products; that the company will lose a significant customer; that the company will be adversely affected by its substantial indebtedness; that the company will not be able to raise sufficient capital to enable it to establish leading-edge capacity to meet product demand and maintain market share; that the company may not achieve facilities and capacity implementation schedules; that the company will not be able to reduce expenses; that the company will not successfully develop, introduce and commercialize new products and technologies or to accelerate our product development cycle; that the company will be able to meet customer demand during cyclical industry or economic downturns; that our reliance on third-party manufacturers may harm us; that industry overcapacity may affect our prices and our manufacturing capacity; that average selling prices may decline; and that the company's operations in foreign countries may be subject to economic and geopolitical risks. The company urges investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the company's Quarterly Report on Form 10-Q for the quarter ended October 1, 2006 and the company's Registration Statement on Form S-1/A dated November 3, 2006. The company assumes no obligation to update any forward- looking statements or information included in this press release.

NOTE: Spansion, the Spansion logo, MirrorBit, ORNAND and combinations thereof, are trademarks of Spansion LLC. Other names used are for informational purposes only and may be trademarks of their respective owners.

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