Atmel has entered into agreements with TSMC and Highbridge Business Park for the sale of its eight-inch wafer fabrication equipment and related property located in North Tyneside, United Kingdom. Atmel had previously announced its intention to sell this facility as part of its strategic restructuring initiatives to reduce costs, accelerate growth and enhance profitability. Atmel will continue to manufacture products at the North Tyneside facility into the first quarter of 2008, during which time production will be redeployed to the Company's manufacturing operations in Colorado Springs, Colorado and Rousset, France as well as to external foundries.

Under the terms of the agreements, TSMC has agreed to purchase Atmel's eight-inch wafer fabrication equipment, and Highbridge Business Park Limited has agreed to purchase the North Tyneside land and buildings for a combined total of $124 million in cash. This sale follows the previously announced sale of Atmel's Irving, Texas wafer fabrication facility for approximately $38 million in cash.