Microchip and ON Semiconductor have sent a proposal to the Board of Directors of Atmel to acquire Atmel for $5.00 per share in cash. The offer provides a premium of 52.4% to Atmel’s closing price of $3.28 on October 1, 2008, and values Atmel at $2.3 billion. The acquisition would be led by Microchip and financed in part by the sale of Atmel’s nonvolatile memory and RF and automotive businesses to ON Semiconductor. Microchip intends to dispose of Atmel’s ASIC business upon completing the acquisition or shortly thereafter. Microchip and has engaged recently in discussions with a third party who has expressed interest in acquiring it.