Spansion Accelerates Flash Memory Conversion To 110nm With Ramp Of Two More Wireless Families

-New products will boost price-performance for today’s phone designs as technology success story continues-

SUNNYVALE, CA -- May 18, 2004 --Spansion, the world’s leading producer of NOR Flash memory, today announced it has started volume production of two additional Flash memory families based on 110-nanometer floating-gate technology. The new products are being introduced to satisfy AMD (NYSE: AMD) and Fujitsu (TSE: 6702) customer demand for immediate price-performance improvement in existing wireless designs

The new S29WS-J and S29NS-J Flash memory families are full-featured, high-performance 1.8-volt solutions that allow rapid migration of today’s designs from 130nm floating-gate technology. To support the broadest possible range of customer products, the new families offer 128- and 64-megabit densities, high-frequency burst mode interfaces and simultaneous read-write operation in single-die and multi-chip package (MCP) configurations.

Our customers are under immense pressure to pack more features and performance into phones destined for emerging as well as established markets,” said Amir Mashkoori, group vice president and general manager of Spansion’s Wireless Business Unit. “Rapid improvements in memory price-performance are critical to their success. To match our customers’ urgency, we qualified the 110nm floating-gate technology and ramped three distinct product families – our complete wireless-optimized portfolio – in less than six months. As a result, Spansion offers what no other manufacturer can: a portfolio of full-featured, sub-130nm products to cover the spectrum of wireless customer needs, today.”

Spansion is the only manufacturer to offer a portfolio of 1.8-and 3-volt wireless NOR Flash memory beyond the 130nm node. Spansion™ 110nm floating-gate technology, which now accounts for more than 50 percent of Spansion’s Fab 25 (Austin, Texas) production, increases device manufacturing capacity and improves cost structure by shrinking existing 130nm floating-gate memory. The technology also powers Spansion’s previously announced 3-volt, page-mode S29PL-J family.

The S29WS-J family features the robust Advanced Sector Protection security feature set and supports industry-standard wireless baseband chipsets with separate address and data I/O signals. The S29NS-J family features a reduced pin count to simplify circuit board routing and a multiplexed I/O bus that combines address and data signals for use with compatible baseband chipsets.

Spansion designed its wireless product portfolio to help designers take full advantage of future technologies and associated cost reductions. Both new families are based on floating-gate technology and feature clear, pin-compatible migration paths to future products based on 110-nanometer, second-generation MirrorBit™ technology

The Spansion S29NS-J and S29WS-J product families are currently sampling to customers and ramping into volume production. The 128- and 64-megabit products are priced at $12 and $7 each, respectively, in quantities of 10,000.

About Spansion™ Flash Memory Products
Spansion™ Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. Spansion Flash memory customers represent leaders in the wireless, cellular, automotive, networking, telecommunications and consumer electronics markets. There are a variety of Spansion Flash memory products, such as devices based on the innovative MirrorBit™ technology; the award-winning simultaneous read-write (SRW) product family; super low-voltage 1.8-volt Flash memory devices; and burst- and page-mode devices. Information about Spansion Flash memory solutions is available at http://www.spansion.com/overview.

Spansion was formed by the integration of AMD's and Fujitsu's Flash memory operations in 2003. It is the largest NOR Flash memory company in the world. Spansion Flash memory solutions are available worldwide from AMD (NYSE:AMD) and Fujitsu (TSE:6702).

Cautionary Statement
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include the possibility that demand for the company’s Flash memory products will be lower than currently expected, particularly in the wireless market; the company will not continue to successfully ramp production of its Flash memory devices on 110-nanometer technology on the current schedule; and the company will not achieve its current Flash memory product introduction schedules. We urge investors to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended March 28, 2004.

Spansion, the Spansion logo, FASL, MirrorBit, and combinations thereof, are trademarks of FASL LLC. AMD is a trademark of Advanced Micro Devices, Inc. Other company and product names used in this publication are for identification purposes only and may be trademarks of their respective companies.