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Spansion Unveils First Family of MirrorBit® Quad Solutions for Content Delivery | Cypress Semiconductor

Spansion Unveils First Family of MirrorBit® Quad Solutions for Content Delivery

Last Updated: January 22, 2007

Industry’s First Four-Bit-Per-Cell Flash Memory Lowers the Cost and Expands Distribution and Storage Options for Electronic Books, Games, Movies and Music

SUNNYVALE, Calif. – Jan. 22, 2007 – Spansion Inc. (NASDAQ, SPSN), the world's largest pure-play provider of Flash memory solutions, today announced the first family of MirrorBit® Quad solutions, designed to enable the rapid and cost-effective proliferation of Flash-based content delivery for books, games, movies, music, photos and other digital-rich content. Leading companies in the gaming and electronic content industry segments are designing the industry’s first four-bit-per-cell MirrorBit Flash memory solution into products planned for production this quarter.

MirrorBit Quad technology stores four bits per cell—twice the bits per cell of any Flash memory technology—and offers a lower cost structure¹ and smaller die size than comparable memory solutions available today. The first MirrorBit Quad products feature densities from 256Mb (megabit) to 2Gb. Due to the cost structure and density range, Spansion can enable a new generation of content distribution and replace CDs, DVDs or Read Only Memories (ROM) for the distribution of multimedia content. With MirrorBit Quad solutions, Spansion is addressing an untapped market opportunity by advancing technology nodes and providing the lower densities and cost structure required for digital content that currently are not provided by NAND Flash memory providers.

“Spansion is addressing consumers’ increasing requirements for digitally rich content delivered in convenient and cost-effective system solutions,” said Hans Wildenberg, executive vice president of Spansion’s Media Storage Division. “With the first MirrorBit Quad solutions, Spansion is continuing its commitment to bring our customers the added-value solutions they need to create new and differentiated products and get them to market quickly.”

The initial MirrorBit Quad products are being produced at 90nm in Spansion’s Fab 25 manufacturing facility in Austin and are designed to be drop-in compatible with other industry-standard NAND products, allowing manufacturers to transition seamlessly—simplifying the design-in process, lowering costs and saving time. The small die size of Spansion’s MirrorBit Quad 2Gb single-die solution can fit in all major card form-factors, including the popular microSD format.

Spansion plans to announce 65nm MirrorBit Quad products later this year targeted for removable applications such as digital film, MP3, game cartridges and USB Flash drives. The company also plans to leverage the MirrorBit Quad technology for integrated applications such as e-books and GPS navigation systems.

“Innovation and differentiation in the market place are keys to a manufacturer’s ability to maintain and expand its customer base,” said Geoff MacGillivray, lead memory analyst for Semiconductor Insights. “With Spansion’s proven nitride-based MirrorBit technology as the foundation, the four-bit-per-cell MirrorBit Quad product provides an avenue for lowering costs and bringing Spansion’s Flash memory to new applications.”

How MirrorBit Quad Technology Works

MirrorBit Quad technology, as with Spansion's two-bit-per-cell MirrorBit technology, stores charges in two distinct locations on a non-conducting nitride storage medium to deliver fundamental cost, quality and manufacturing advantages over floating-gate technology. MirrorBit technology has two storage locations per cell and MirrorBit Quad stores two bits per storage location. Due to the increased storage capacity per cell, MirrorBit Quad technology is capable of delivering up to 30 percent smaller effective cell size per bit than floating-gate MLC NAND Flash memory technology at the same process technology node.

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

¹Offering a lower cost structure is based on a number of factors including the manufacturing efficiency benefits of MirrorBit technology and MirrorBit Quad technology’s smaller effective cell size as noted above.

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 plans to announce 65nm products later this year targeted for removable applications and the plans to leverage the MirrorBit Quad technology for integrated applications. 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.

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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