Atmel Receives French Worker Approval for Sale of Rousset Fab

March 1, 2010

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Atmel Receives French Worker Approval for Sale of Rousset Fab

SAN JOSE, Calif., March 1 -- Atmel(R) Corporation (NASDAQ: ATML), a leader in microcontroller and touch solutions, today announced that the proposed sale of Atmel's wafer fabrication operation in Rousset, France, to LFoundry GmbH has been approved by employees at the facility and the Rousset Works Council. Subsequent to receiving Works Council approval, Atmel sought and obtained approval from its Board of Directors to enter into a stock purchase agreement with LFoundry for the sale, which is expected to close in the second quarter. Over 700 workers are currently employed at the Rousset fab, which manufactures Atmel's high-performance ASIC, Memory and Microcontroller devices.

"We are pleased that the employees in Rousset have voted in favor of the fab sale to LFoundry and support the continuation of employment and business in France," said Steven Laub, Atmel's President and CEO. "This is an excellent outcome for all parties, including our employees, the local community, our customers, Atmel and its shareholders."

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, non-volatile 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.

About LFoundry

LFoundry, headquartered near Munich in Erding, Germany, is a leading analog/mixed-signal silicon foundry with a 200mm production line providing access to manufacturing services down to advanced analog 0.15 micron CMOS technologies with innovative extensions. Based in the heart of Europe, LFoundry is in an excellent position to support a wide portfolio of applications, especially when it comes down to high flexibility and the customization of technologies.

Safe Harbor for Forward-Looking Statements

Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about the proposed sale of Atmel's wafer fabrication business in Rousset, France to LFoundry, as well as the effects of such a transaction; Atmel's transformation plans, and exploration of strategic alternatives for its ASIC business and related manufacturing assets. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, and could change, and the company assumes no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include the general economic conditions, risk relating to the negotiation, signing and closing of a transaction with LFoundry, including the risk that the parties may not sign definitive agreements relating to the transaction; that required approvals may not be obtained in a timely manner or at all, or that certain conditions to closing may not be satisfied in a timely manner or at all; the inability to realize the anticipated benefits of a potential transaction with LFoundry, if consummated, or of other recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K for the year ended December 31, 2009, filed on March 1, 2010.

  Investor Contact:                Media Contacts:
  Deborah Stapleton                Barrett Golden and Jamie Wert
  IR counsel                       Joele Frank, Wilkinson Brimmer Katcher
  +1.650.470.4200                  +1.212.355.4449

Source: Atmel Corporation

CONTACT:  Investors, Deborah Stapleton, IR counsel, +1-650-470-4200,; or Media, Barrett Golden and Jamie Wert of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449, all for Atmel Corporation


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