Elpida and Spansion Develop 4-Gigabit NAND Flash Memory

Elpida Memory, Inc. (TOKYO: 6665) and Spansion Inc. (NYSE: CODE) today announced they have created the industry's first charge-trapping 1.8 V, 4-gigabit SLC (Single Level Cell) NAND Flash memory. This NAND memory, based on Spansion's MirrorBit® charge-trapping technology, is being produced at Elpida's Hiroshima factory. The advanced technical expertise and strong cooperation of the two companies has made it possible to develop and manufacture the world's first charge-trapping NAND Flash memory.

Compared to floating-gate NAND Flash memory, charge-trapping NAND Flash memory is more scalable and has a simpler cell structure. It offers superior performance, faster read and faster programming speeds.

Yukio Sakamoto, president and chief executive officer of Elpida, said the following:

"Elpida has obtained good chips from its first trial lot of charge trap NAND flash memory. This result demonstrates the high level of technical expertise of both companies. Our preparations to manufacture our NAND flash memory as soon as possible are well underway, which should enable us to deliver it to customers looking forward to it soon."

"This is an important milestone in our recently announced alliance with Elpida," said John Kispert, president and CEO of Spansion. "The teams have made significant progress in this development and we believe it will benefit both Elpida's and Spansion's customers with new NAND products targeted at the specific market segments we each serve."

Elpida plans to combine NAND flash memory with Mobile RAM™ to sell mobile consumer products, thereby providing memory solutions to the mobile market that offer high added value. In addition, Spansion is developing NAND solutions for the embedded and select wireless markets and continues to produce and sell its NOR flash memory products to its customers in the automotive, consumer, communications, industrial and select wireless market segments.

Elpida plans to start shipping samples of the 1.8 V 4-gigabit NAND flash memory during the fourth quarter of 2010, will begin mass production during the first quarter of 2011, and is developing 2-gigabit and 1-gigabit density products in addition to its 4-gigabit products. Spansion will ship samples in the first quarter of 2011 and will begin production in the second quarter of 2011. Both companies are also developing 3.0 V products and plan to develop 1-gigabit, 2-gigabit, and 4-gigabit products. To satisfy customer demands, we are developing a full lineup of our NAND flash memory.

Cautionary Statement

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements. The risks and uncertainties include Spansion's ability to: jointly, with Elpida, develop technology that results in new NAND products; independently develop NAND solutions for the embedded and select wireless markets; ship samples of product that are referenced in this release in the first quarter of 2011 or begin production of such products in the second quarter of 2011 or at any time. Additional risks related to Spansion's recent emergence from bankruptcy include: any negative impacts on the company's business, results of operations, financial position or cash management arrangements; the negative impact on relationships with employees, customers, suppliers and contract manufacturers and other stakeholders; and the failure of Spansion to successfully implement its plan of reorganization. In addition, the instability of the global economy and tight credit markets could continue to adversely impact Spansion's business in several respects, including adversely impacting credit quality and insolvency risk of Spansion and its customers and business partners, including suppliers and distributors; bookings; and reductions and deferrals of demand for Spansion products. Spansion urges investors to review in detail the risks and uncertainties discussed in Spansion's Securities and Exchange Commission filings, including but not limited to Spansion's most recent Annual Report on Form 10-K for fiscal 2009 and Quarterly Reports on Form 10-Q. Unless otherwise required by applicable laws, the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Elpida

Elpida Memory, Inc. (TOKYO:6665) is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technological expertise. Its 300mm manufacturing facilities, consisting of its Hiroshima Plant and a Taiwan-based joint venture, Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phones and digital consumer electronics. More information can be found at http://www.elpida.com.

About Spansion

Spansion's (NYSE:CODE) technology is at the heart of electronics systems, powering everything from the Internet of today to the smart grid of tomorrow, positively impacting people's daily lives at work and play. Spansion's broad Flash memory product portfolio, smart innovation and industry leading service and support are enabling customers to achieve greater efficiency and success in their target markets. For more information, visit http://www.spansion.com/.

Spansion®, the Spansion logo, MirrorBit®, and combinations thereof, are trademarks and registered trademarks of Spansion LLC in the United States and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.

Mobile RAM is a trademark of Elpida Memory, Inc.

Information in this news release is current as of the timing of the release, but may be revised later without notice.