Santa Clara, Calif., January 7, 1999 - NexFlash Technologies, Inc., today announced that it has signed an agreement to license its patented 0.35 and 0.25-micron NexFlash™ process and design technologies to UMC Group. The agreement involves the transfer of flash memory manufacturing processes to UMC Group company, UTEK Semiconductor Corp. (UTEK). In addition, the agreement offers certain high density, high speed, and ultra low power flash memory designs for UMC Group customers to embed in their ASIC or logic products.

"This agreement is a significant step in the execution of our intellectual property licensing strategy, which targets fast growing embedded flash memory markets such as highly integrated microcontrollers and DSPs." said Mo Bandali, NexFlash's Chief Operating Officer. "As our strategic partner, UMC Group can help us reach a broad customer base. Its excellent wafer production facilities also complement our embedded flash designs."

Jim Kupec, president of UMC Group (USA) said, "Embedded memories are a critical part of UMC Group's foundry strategy. With the era of system-on-chip (SOC) designs upon us, we have made an extensive catalog of mega-cell block resources available to our customers through our Gold IPTM program. Embedded non-volatile memories are a key piece to our SOC solution, and NexFlash's excellent technology will enable UMC Group customers to quickly and cost-efficiently produce designs for a wide-range of applications."

NexFlash has established the goal of becoming the vendor of choice for embedded flash designs. Central to its core intellectual properties are several fundamental flash memory patents covering the memory cell architecture and operations in the Fowler-Nordheim tunneling mode. This technology has the benefit of very low power, low voltage, small memory sectors, and fast access/ programming/erase time. Additionally, the technology integrates well with manufacturing processes for ASIC or other logic products.

"We are very excited about this relationship with UMC Group, and we look forward to working with them for our mutual success." Mr. Bandali said.

NexFlash Technologies, Inc. is focused on designing and marketing high density, low power flash memory devices, as well as licensing flash memory designs for customers' embedded memory products. NexFlash products are used in telecommunications, data communications, networking systems, personal computers, instrumentation and consumer products.