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SST AND TOSHIBA SIGN LICENSING AGREEMENT FOR EMBEDDED FLASH MICROCONTROLLERS

29 September, 2003


Toshiba to Utilize SST's SuperFlash Technology for Microcontroller Products

Silicon Storage Technology, Inc.
Toshiba Corporation

SUNNYVALE, Calif., September 29, 2003 -- SST (Silicon Storage Technology, Inc., NASDAQ: SSTI), a leader in flash memory technology, and Toshiba Corporation, a world leader in semiconductors, today announced the companies have signed an agreement to license SST's SuperFlash technology to Toshiba. The agreement underscores the success of SST's high-reliability, high-performance SuperFlash technology as the technology-of-choice for embedded applications. The agreement allows Toshiba to develop microcontrollers embedding SST's ESF1-500 (0.5 micron) SuperFlash technology and to reinforce its line-up of flash-embedded microcontrollers targeting a wide range of applications, including consumer and industrial products. In return, SST will receive licensing fees and royalties from Toshiba on sales of microcontrollers that incorporate the SuperFlash technology.

"We evaluated a number of NOR flash-embedded architectures for our microcontrollers before selecting SST's SuperFlash technology," said Yutaka Murao, general manager, Microprocessor Department, System LSI Division, Toshiba Corporation Semiconductor Company. "We were impressed with this CMOS-compatible, low-power SuperFlash technology because it is simple, flexible and highly reliable. The recent shift to small-lot, diversified production of electronic products has fueled demand for flash memory-embedded microcontrollers that can support flexible multi-time reprogramming. We believe the low cost structure of the SuperFlash technology will enable us to offer a wider variety of 8-bit and 16-bit microcontrollers."

Bing Yeh, president and CEO of SST, said, "We are honored and very pleased that Toshiba chose to license our SuperFlash technology for embedded flash products. Today's agreement with Toshiba, one of the world's largest semiconductor companies, underscores SST's SuperFlash technology as the best embedded flash technology available today for the consumer market. We are committed to Toshiba's success and will work closely with them to integrate our flash memory process technology into their products."

While Toshiba will initially license SST's 0.5 micron technology, the companies expect to expand this relationship to include more advanced generations of SuperFlash. Toshiba will use the SuperFlash technology to develop microcontrollers serving the Chinese market among others.

The agreement represents an expansion of SST's licensing business, which includes agreements with wafer foundries such as TSMC and 1st Silicon; fabless companies such as Emosyn, the semiconductor division of ATMI and integrated device manufacturers such as IBM, Motorola, National Semiconductor, NEC, Oki Semiconductor, Samsung, Sanyo, Seiko Epson, and Winbond Electronics.

About Toshiba

Toshiba Corporation is a leader in the development and manufacture of electronic devices and components, information and communication systems, consumer products and power systems. The company's ability to integrate wide-ranging capabilities, from hardware to software and innovative services, assure its position as an innovator in diverse fields and many businesses. In semiconductors, Toshiba continues to promote its leadership in the fast growing system-on-chip market and to build on its world-class position in NAND flash memories, analog devices and discrete devices. Toshiba has approximately 166,000 employees worldwide and annual sales of over US$47 billion. Visit Toshiba's website at www.toshiba.co.jp/index.htm.

About SuperFlash Technology

SST's SuperFlash technology is a NOR type, split-gate cell architecture which uses a reliable thick-oxide process with fewer manufacturing steps resulting in a low-cost, nonvolatile memory solution with excellent data retention and higher reliability. The split-gate NOR SuperFlash architecture facilitates a simple and flexible design suitable for high performance, high reliability, small or medium sector size, in- or off-system programming and a variety of densities, all in a single CMOS-compatible technology.

About Silicon Storage Technology, Inc.

Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of nonvolatile memory solutions, based on proprietary, patented SuperFlash technology, for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. SST's product families include various densities of high functionality flash memory components, flash mass storage products and flash microcontrollers. SST also offers its SuperFlash technology for embedded applications through its world-class manufacturing partners and technology licensees including 1st Silicon (Malaysia) Sdn. Bhd., Grace Semiconductor Manufacturing Corporation (GSMC), IBM, Motorola, National Semiconductor, NEC Corporation, Oki Electric Industry Co. Ltd., Samsung Electronics Co. Ltd., SANYO Electric Co., Ltd., Seiko Epson Corp., Shanghai Hua Hong NEC Electronics Co., Ltd., Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), Vanguard International Semiconductor Corporation, and Winbond Electronics Corp. TSMC offers embedded SuperFlash under its trademark Emb-FLASH. Further information on SST can be found on the company's Web site at http://www.sst.com.

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements regarding flash memory market conditions, the company's future financial performance, the performance of new products and the company's ability to bring new products to market that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms and conditions associated with licensees' royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect the company's customers, as well as other risks detailed from time to time in the company's SEC reports, including the Annual Report on Form 10-K for the year ended December 31, 2002 and on Form 10-Q for the quarters ended March 31, and June 30, 2003.

For more information about SST and the company's comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to safanasieff@sst.com or through SST's Web site at http://www.sst.com. SST's head office is located at 1171 Sonora Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036.


  • The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc.
  • Emb-FLASH is a trademark of TSMC.
  • All other trademarks or registered trademarks are the property of their respective holders.


Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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