Microchip Technology Completes Acquisition of Silicon Storage Technology Following Approval of Transaction by

Microchip Technology Completes Acquisition of Silicon Storage Technology Following Approval of Transaction by SST Shareholders

April 08, 2010 05:19 PM Eastern Daylight Time

CHANDLER, Ariz. & SUNNYVALE, Calif.–(BUSINESS WIRE)–Microchip Technology Incorporated (NASDAQ: MCHP) (“Microchip”) and Silicon Storage Technology, Inc. (NASDAQ: SSTI) (“SST”) today announced that Microchip has completed its previously announced acquisition of SST following approval of the transaction by SST shareholders at SST’s Special Meeting of Shareholders held today.

Approximately 65.91 percent of SST shares outstanding were voted in favor of the Microchip merger agreement, under which SST shareholders will receive $3.05 per share in cash.

“We are pleased to have completed this transaction,” said Steve Sanghi, Microchip President and Chief Executive Officer. “Through this acquisition, we gain access to SST’s SuperFlash® technology and extensive patent portfolio, which are critical building blocks for advanced microcontrollers. We expect that SST will also enhance our ability to customize technology variants, thereby adding an advantage over competing technologies.”

“We are pleased to conclude a successful process that has allowed us to maximize value for SST shareholders,” said Ronald Chwang, Chairman of the Strategic Committee of SST’s Board of Directors.

“We are confident that SST will flourish as a part of Microchip,” said Bing Yeh, co-Founder and Chief Executive Officer of SST. “As part of a larger, more diversified company, we believe that SST will be better positioned to deliver the superior service and innovative NOR flash and embedded flash solutions that our customers expect.”

As a result of the completion of the transaction, trading in SST common stock on the NASDAQ will cease effective after the close of market today.

Cautionary Statement:

The statements in this release relating to SST enhancing Microchip’s ability to customize technology variants that provides Microchip an advantage over competing technologies, confidence that SST will flourish as part of Microchip and SST being better positioned to deliver the service and solutions that its customers expect are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to: changes in demand or market acceptance of SST’s products and technology and the products and technology needs of its customers, changes in demand or market acceptance of Microchip’s products and the products of its customers; competitive developments including changes in microcontroller or memory technologies; the costs and outcome of any current or future tax audit or any litigation involving Microchip’s or SST’s intellectual property, customers or other issues; disruptions due to natural disasters, terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally. For a detailed discussion of these and other risk factors, please refer to the filings of Microchip and SST on Form 10-K, Form 10-Q and Form 8-K. You can obtain copies of Microchip’s and SST’s SEC filings and other relevant documents for free at the SEC's website (www.sec.gov), or at Microchip’s website (www.microchip.com) for its filings or at SST’s website (www.ssti.com) for its filings or from commercial document retrieval services.

Stockholders are cautioned not to place undue reliance on the forward-looking statements in this news release, which speak only as of the date such statements are made. Neither Microchip nor SST undertakes any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this April 8, 2010 press release, or to reflect the occurrence of unanticipated events.

www.microchip.com