SAN JOSE, Calif., Nov. 22 – LAWFUEL – The Law News Network — Atmel Co…

SAN JOSE, Calif., Nov. 22 – LAWFUEL – The Law News Network — Atmel Corporation
(Nasdaq: ATML), a worldwide leader in the development, fabrication and sale of
advanced semiconductors, today announced that it was awarded approximately
$43.1 million in damages after the International Centre for Dispute
Resolution, International Arbitration Tribunal found LM Ericsson Telefon, AB
and its wholly-owned subsidiary, Ericsson Mobile Platform (collectively
“Ericsson”) liable for numerous breaches of contract and misappropriation of
trade secrets relating to Atmel’s proprietary AVR microcontroller technology.
Ericsson is required to make payment within 30 days of November 21, 2005 in
accordance with the award.

The Arbitration Panel also awarded Atmel an immediate injunction against
Ericsson and those “acting in concert or participation with it,” including,
Sony Ericsson and any other AVR ASIC licensees of Ericsson, as well as Texas
Instruments who manufactured and sold AVR chipsets to the Ericsson licensees.
Essentially, the injunction prevents Ericsson from, among other things,
authorizing any entity to sell, use or otherwise dispose of, any ASIC
embedding the AVR or modifications thereof. The injunction further directs
Ericsson to, among other things, inform Sony Ericsson and any other ASIC AVR
licensee of Ericsson that they must cease production of all communications
equipment that is based on or includes an ASIC AVR or modifications thereof.
Atmel did not seek to prohibit Ericsson’s use of Atmel’s standard AVR parts.
“Inasmuch as Ericsson, Sony Ericsson and Texas Instruments are some of
Atmel’s most valued customers, it is difficult to say that we are pleased with
the outcome as we had always hoped to resolve this matter without resorting to
litigation. Notwithstanding the Award, Atmel continues to value its business
relationships with these entities and we hope that this will enable us to
start afresh with them on on-going and future business,” says Julie
Mar-Spinola, Vice President, Global Affairs — Litigation and Intellectual

Atmel was represented by Farella Braun + Martel LLP. Lead trial counsel
was John Cooper, along with Grace Won and Andy Leibnitz and assisted by a
stellar trial team of talented attorneys and staff, including Atmel’s Sr.
Litigation Counsel, Cynthia Bright.

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 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 or trademarks of Atmel Corporation or its
subsidiaries. Other terms and product names may be trademarks of others.

CONTACT: Steven Horwitz, Director, Investor Relations of Atmel,

SOURCE Atmel Corporation
Web Site:

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