Date: 22/11/2008

ON Semiconductor decides not to acquire Atmel

ON Semiconductor is withdrawing from its joint proposal with Microchip Technology to acquire Atmel Corporation.

Keith Jackson, President and Chief Executive Officer of ON Semiconductor said, "While we believe that Atmel's nonvolatile memory and RF and automotive businesses would be an attractive strategic acquisition, we have decided to withdraw from the proposal due to the unforeseen deterioration in the semiconductor market since we announced our proposal as well as the unprecedented weakness in the financial markets."

Steve Sanghi, President, Chief Executive Officer and Chairman of Microchip said, "We are disappointed that difficult semiconductor industry and financial market conditions have resulted in ON Semiconductor withdrawing from our joint proposal to acquire Atmel. As a result of ON Semiconductor's withdrawal, Microchip must also withdraw its $5 per share offer for Atmel. However, Microchip intends to evaluate its potential alternatives for pursuing a transaction without ON Semiconductor."

Atmel not showing any interest in this acquisition bid might also have driven, On Semi to back off.