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 provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

Contact: Robert Pursel, Director of Investor Relations, 1-408-487-2677

SOURCE Atmel Corporation

http://www.atmel.com

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 provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

Contact: Robert Pursel, Director of Investor Relations, 1-408-487-2677

SOURCE Atmel Corporation

http://www.atmel.com

ATtiny4, ATtiny5, and ATtiny9 are pin- and functional-compatible to the existing ATtiny10. For customers, this means effortless migration between the devices in-between different projects with different requirements. The 6-pin tinyAVR microcontrollers are also pin-compatible with similar devices from competitors. This enables customer to increase the performance and reduce the power consumption in their existing designs.

"The ATtiny10 was launched in April and we were overwhelmed by the rapid market acceptance and strong demand for this device, which is the smallest AVR microcontroller. It is clear that developers needed innovation in this market segment," said Jukka Eskelinen, Product Marketing Director, tinyAVR for Atmel Corporation. "Atmel is now expanding the offering with three new parts with different memory densities and feature sets. With more parts available, engineers can cost optimize their applications without sacrificing the features they need."

All tinyAVR microcontrollers use the standard AVR microcontroller development tools. The AVR Studio(R) integrated development environment is available free on Atmel's website at: http://www.atmel.com/AVRStudio.

Availability, Pricing and Photo

Samples of the ATtiny4, ATtiny5 and ATtiny9 are available now. Volume prices for 5K units start at $0.34.

For a high-resolution photo of an ATtiny device, please click the following links:

http://www.atmel.com/pressroom/photos/attiny10_1.png

http://www.atmel.com/pressroom/photos/attiny10_2.png

About Atmel

Atmel is a worldwide leader in the design and manufacture of capacitive touch solutions, 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.

A(C) 2009 Atmel Corporation. All Rights Reserved. Atmel(R), Atmel logo and combinations thereof, AVR(R), picoPower(R), AVR Studio(R), tinyAVR(R) and others are registered trademarks, or trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

Information:

For information on tinyAVR, visit http://www.atmel.com/tinyAVR.

Press Contact:
Clive Over, Director of Public Relations
Tel: +1-408-436-4305, Email: clive.over@atmel.com

SOURCE Atmel Corporation

http://www.atmel.com

Under the Stipulation, Atmel agreed that if, prior to September 14, 2012, Atmel adopts a new stockholder rights plan that includes a "Derivative Contract" within the definition of "Beneficial Ownership" (a "New Derivative Rights Plan"), Atmel will clarify that (i) the term "Derivatives Contract" excludes interests in broad-based index options, broad-based index futures, and broad-based publicly traded market baskets of stock approved for trading by the appropriate federal governmental authority; and (ii) to qualify as or constitute a "Derivatives Contract," a contractual arrangement must include or reference a number of "Notional Common Shares." On September 14, 2009, Atmel's Board of Directors (the "Board") passed a resolution interpreting Section 1(d)(iv) of the Rights Agreement (which defines the term "Beneficial Ownership") consistent with the foregoing.

In the Stipulation, Atmel also agreed that if, prior to September 14, 2012, Atmel adopts a New Derivative Rights Plan with an expiration date beyond the date of Atmel's 2010 annual meeting of stockholders, then Atmel will include a proposal for a stockholder advisory vote on the provision including Derivative Contracts in the definition of Beneficial Ownership in its proxy statement for the first annual meeting occurring more than 45 days after the date of such action. Under the terms of the Stipulation, the stockholder vote will not be binding on Atmel or the Board, will not be deemed to be a condition to the effectiveness of the New Derivative Rights Plan, and will not be construed as overruling a decision by the Board, nor to create or imply any additional fiduciary duty by the Board. Atmel agreed to the same advisory vote provision if it extended the expiration date of the Rights Agreement beyond the date of the Company's 2010 annual meeting of stockholders, but the Rights Agreement expired on October 15, 2009, making that provision no longer operative.

As part of the settlement, Atmel also has agreed not to oppose plaintiffs' attorneys' application to the Court for an award of fees and expenses up to a limit of $950,000. Pursuant to its pre-existing obligations to indemnify the Board, Atmel shall pay such an award as the Court may approve, up to $950,000.

Atmel and the Board entered into the Stipulation without admitting or conceding any merit to any allegation made in the Shareholder Actions solely to eliminate the burden, risk and expense of further litigation. Except as described above, the Stipulation provides for no constraint on the ability of Atmel and/or the Board to respond to any proposed acquisition or other transaction or to adopt or amend a stockholder rights plan in accordance with applicable Delaware law.

The Court has scheduled a hearing on January 7, 2010, at 2:30 p.m., to be held at the Court of Chancery, 34 The Circle, Georgetown, Delaware 19947, for the purpose of, among other things, (i) determining whether the settlement set forth in the Stipulation should be approved by the Court as fair, reasonable, adequate, and in the best interests of the Settlement Class, and (ii) hearing and determining any objections to the settlement or the application of plaintiffs' attorneys' for an award of attorneys' fees and expenses. Any shareholder desiring further information about the settlement or wishing to be heard at the Court hearing, should consult the Notice of Pendency of Class Action, Proposed Class Action Determination, Proposed Settlement of Class Action, Settlement Hearing, and Right to Appear, which is available on Atmel's website at www.atmel.com.

    Investor Contact:                  Media Contact:
    Robert Pursel                      Barrett Golden / Jaime Wert
    Director of Investor Relations     Joele Frank, Wilkinson Brimmer Katcher
    408-487-2677                       212-355-4449

SOURCE Atmel Corporation

http://www.atmel.com