Atmel to Acquire ADD Semiconductor: A Leading Developer of Power Line Communications Technology

Atmel® Corporation (Nasdaq: ATML) today announced that it has signed a definitive agreement to acquire Advanced Digital Design, S.A. ("ADD Semiconductor"), a privately held company based in Zaragoza, Spain that develops power line communication solutions. The transaction is subject to customary closing conditions and is expected to close in October. Atmel does not expect the acquisition to have a material impact on its overall financial position and results of operations in 2011. ADD Semiconductor, a founding member of the PRIME Alliance, specializes in the design of system-on-chip solutions that allow for narrow-band data communication across existing electric power lines. In addition to successfully supporting a number of advanced meter infrastructure ("AMI") pilots in Europe, ADD Semiconductor products are also targeted towards the lighting, building automation and solar infrastructure markets. With ADD Semiconductor, Atmel will acquire a portfolio of innovative products and a team of technical experts focused on signal processing and power line communications. This acquisition complements Atmel's existing smart energy product portfolio, better positioning the company for continued success in the growing smart meter, energy management, home and building automation markets. www.atmel.com