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Atmel and Tower Semiconductor Announce Joint CMOS Image Sensor Technology and Product Development Agreement

San Jose, California, Migdal Haemek, Israel (ots/PRNewswire)

- Tower's 0.18-Micron Technology Will Be Used in Atmel's
Next-Generation CMOS Image Sensor Products
Atmel(R) Corporation (Nasdaq: ATML), a global leader in the
development and fabrication of advanced semiconductor solutions, and
Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE), a pure-play
independent specialty foundry, announced today that they have agreed
on a CMOS image sensor technology development partnership.
Atmel and Tower will work together to design and develop process
technology predominantly to be used in consumer products. Under the
agreement, both companies have rights to use the jointly developed
technology. Tower revenue from this agreement will be from foundry
wafer sales and is expected to start in 2006.
Tower and Atmel will be developing CMOS image sensor-related
processes, including technology modules specifically designed for
advanced photodiode structures. Process development and fabrication
activities will be carried out at Tower's Fab2 in Migdal Haemek,
Israel. Atmel's engineering team in Grenoble, France, will perform
circuit and pixel design and productization activities.
"We're excited to be teaming with Tower on design and development
efforts to produce cutting-edge CMOS image sensors," said
Jean-Philippe Lamarcq, Imaging Product Line director of Atmel. "As
our customers' technology demands get more sophisticated, we realize
the value of working with a specialized foundry that has a
well-deserved reputation for manufacturing state-of-the-art CMOS
image sensors."
"Partnering with Atmel, which brings years of image sensor
experience in both CCD and CMOS technologies, will benefit both Tower
and its customers by creating innovative technologies to produce a
wide variety of advanced CMOS image sensors," said Cliff Drowley,
vice president of Tower's CMOS Image Sensor Technology Line. "We are
excited to be working with Atmel to create next-generation
solutions."
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(R)
NOTE: Atmel(R), logo and combinations thereof, Everywhere You
Are(R) and others, are registered trademarks and others are the
trademarks of Atmel Corporation or its subsidiaries. Other terms and
product names may be trademarks of others.
About Tower Semiconductor Ltd.
Tower Semiconductor Ltd. is a pure-play independent wafer foundry
established in 1993. The company manufactures integrated circuits
with geometries ranging from 1.0 to 0.13 micron; it also provides
complementary technical services and design support. In addition to
digital CMOS process technology, Tower offers advanced non-volatile
memory solutions, mixed-signal and CMOS image-sensor technologies. To
provide world-class customer service, the company maintains two
manufacturing facilities: Fab 1 has process technologies from 1.0 to
0.35 micron and can produce up to 16,000 150mm wafers per month. Fab
2 features 0.18-micron and below standard and specialized process
technologies, and has the current capacity of up to 15,000 200mm
wafers per month. Tower's Web site is located at
http://www.towersemi.com/ .
Safe Harbor
This press release includes forward-looking statements, which are
subject to risks and uncertainties. Actual results may vary from
those projected or implied by such forward-looking statements.
Potential risks and uncertainties include, without limitation, risks
and uncertainties associated with (i) the successful completion of
the development by Atmel and Tower of the CMOS image-sensor process
technologies to be utilized in Tower's facility, (ii) market
acceptance and competitiveness of the products to be manufactured by
Tower for Atmel using these technologies and (iii) the successful
ramp-up of production of the developed technologies. A complete
discussion of risks and uncertainties that may affect the accuracy of
forward-looking statements included in this press release or which
may otherwise affect our business is included under the heading "Risk
Factors" in our most recent Annual Report on Forms 20-F and 6-K, as
were filed with the Securities and Exchange Commission and the Israel
Securities Authority.
     Information:
     Information on Atmel can be retrieved at:  http://www.atmel.com
     Information on Tower can be retrieved at:  http://www.towersemi.com
     Atmel Press Contacts:
     Sylvie Mattei, Communication Manager, Atmel Grenoble
     Tel:  +33-4-76-58-30-25, Email:   sylvie.mattei@gfo.atmel.com
     Ford Kanzler, Manager of Corporate Press Relations - USA and Asia
     Tel:  +1-408-436-4343, Email:   fkanzler@atmel.com
     Veronique Sablereau, Corporate Communications Manager - Europe
     Tel:  +33-1-30-60-70-68, Fax:  +49-71-31-67-24-23
     Email:   veronique.sablereau@atmel.com
    Tower Press Contact
     Corporate Contact       Agency Contact        Investor Relations Contact
     Michael Axelrod         Mary Curtis           Sheldon Lutch
     Tower Semiconductor USA Pacifico Inc.         Fusion IR & Communications
     +1-408-330-6871         +1-408-293-8600 x302  +1-212-268-1816
      pr@towersemi.com         mcurtis@pacifico.com   sheldon@fusionir.com
Web site: http://www.atmel.com

Contact:

CONTACT: Sylvie Mattei, Communication Manager, Atmel Grenoble,
+33-4-76-58-30-25, or sylvie.mattei@gfo.atmel.com, or Ford Kanzler,
Manager of
Corporate Press Relations - USA and Asia, +1-408-436-4343, or,
fkanzler@atmel.com, or Veronique Sablereau, Corporate Communications
Manager - Europe, +33-1-30-60-70-68, or fax, +49-71-31-67-24-23, or
veronique.sablereau@atmel.com, all of Atmel Corporation; or Michael
Axelrod of
Tower Semiconductor USA, +1-408-330-6871, or pr@towersemi.com, or
Mary Curtis
of Pacifico Inc., +1-408-293-8600, ext. 302, or mcurtis@pacifico.com;
or
investors, Sheldon Lutch of Fusion IR & Communications,
+1-212-268-1816, or
sheldon@fusionir.com, both for Tower Semiconductor Ltd.

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