Atmel Corporation

Atmel Receives 1.2 Million Pound Government Grant Supporting Future Design of Secure Microcontroller Devices for Growth Market Smart Card Applications

    East Kilbride, Scotland (ots/PRNewswire) -

    - Scottish Government Minister for Enterprise and Atmel Management Agree on Expansion Plans for Atmel's Lanarkshire Facility in Scotland

    Atmel(R) Corporation (Nasdaq: ATML), a global leader in the design and manufacture of advanced semiconductors, focused on microcontrollers, nonvolatile memory, logic, RF components and sensors, announced today that it has received significant support from Scottish leadership to continue plans to grow semi-conductor designs at its Scottish Facility in Lanarkshire. Scotland's Enterprise Minister Jim Wallace has met with senior staff at Atmel's HQ in San Jose, California to discuss the expansion of its semiconductor manufacturing facility at East Kilbride. The main activities carried out at Atmel's East Kilbride facility are product development and production testing of the chips used inside Smart Cards, which continue to support the rapid growth of Atmel's Smart Card chip business.

    During the meeting Andy Bear, Operations Director of Atmel's East Kilbride facility, said, "Since the East Kilbride business was purchased in 1999 we have already doubled employment at the site. The continued expansion of our business is contrary to the industry trend and has been driven by Atmel's rapid customer acceptance in key Smart Card markets and made possible because of an ongoing commitment from Atmel for design and manufacture in Europe and an excellent performance from our staff.

    "The creation of many new high quality jobs in East Kilbride is very good news for the town and for Scotland in general. The electronics industry has gone through a difficult spell in recent years and this makes today's news all the more welcome," said Mr. Wallace. "We have supported Atmel in the past with RSA grant assistance and we have watched the company almost double their staff in East Kilbride. Atmel has ambitious plans to become the leading supplier of silicon for Smart Cards in the next few years. They would also like to see their East Kilbride workforce continue to grow. These are fine ambitions and ones the Executive and Scottish Development International will continue to support. I am delighted to announce that the Executive will provide 1.2 million pounds to support Atmel's expansion plans," concluded Mr. Wallace.

    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) 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(SM).

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

@@start.t1@@        Press Contacts
        Kirstie Crawford, Senior Press & PR Executive, Scottish Enterprise
        Tel:  +0141-228-2876, Mobile:  +0774-7770256
        Andy Bear, Operations Director, Atmel East Kilbride
        Tel:  +01355-803461, Mobile:  +07884-11631, Email:
        Veronique Sablereau, Corporate Communications Manager -- Europe
        Tel:  +33-1-30-60-70-68, E-mail:

    Web site:

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NOTES TO EDITORS: 1. Atmel Corporation, founded in 1984, is a
worldwide leader in the design, manufacturing and marketing of
advanced semiconductors. Atmel's Smart Card chip business revenue
increased from $27m in 1999 and this year's revenue forecast is
$190m. For further information go to 2. In October
2001, "Scotland: A Global Connections Strategy" was launched as part
of the Scottish Executive's guiding principles for the Enterprise
Networks, "A Smart Successful Scotland." It set out a radical new
approach to establish Scotland as a worldclass business partner in
the globally connected economy of the 21st Century, including the
creation of a new body, Scottish Development International, which is
jointly operated by the Scottish Executive and Scottish Enterprise.  
3. Scottish Enterprise is the main economic development agency for
Scotland covering 93% of the population from Grampian to the Borders.
The Scottish Enterprise Network consists of Scottish Enterprise and
12 Local Enterprise Companies.  Working in partnership with the
private and public sectors the Network aims to build more and better
businesses, to develop the skills and knowledge of Scottish people,
and to encourage innovation to make Scottish business internationally
competitive.  Further information on Scottish Enterprise is available
at CONTACT:  Kirstie Crawford, Senior
Press & PR Executive of Scottish Enterprise, +0141-228-2876, or
mobile, +0774-7770256, or, for Atmel
Corporation; or Andy Bear, Operations Director of Atmel East
Kilbride, +01355-803461, or mobile,  +07884-311631, or, or Veronique Sablereau, Corporate Communications
Manager -- Europe, of Atmel Corporation, +33-1-30-60-70-68, or

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