Saifun Signs Memory Technology Licensing Agreement with Sony

NETANYA, Israel, December 16, 2004 - Saifun Semiconductors Ltd., a leader in flash memory technology, today announced that the company has entered a technology licensing agreement with Sony Corporation to provide Saifun NROM™ technology in embedded NVM (non-volatile memory) applications.

Saifun NROM technology enables its licensees to gain a significant competitive edge in a wide range of applications such as computers and peripherals, consumer appliances, communications devices and infrastructure, and industrial applications.

“This agreement with Sony is another confirmation of our strong position as a supplier of advanced high density flash and embedded flash technology,” said Kobi Rozengarten, President of Saifun Semiconductors. “Saifun provides a clear, long-term roadmap for current and future device development by this technology license.”

The list of leading semiconductor and NVM companies using Saifun NROM technology as their future embedded Flash platform has been growing, including Infineon, AMD, Fujitsu, Spansion, Macronix, Tower Semiconductor and more.

Saifun NROM technology offers various advantages over the existing technology for NVM products, among them:

• Smaller die size (scaling down to 50 nm and below) and form factor for smaller, less expensive applications with room for more features
• Fewer manufacturing process steps leading to significant cost advantages
• Low power consumption for longer battery life
• Greater reliability with more than 100,000 cycles endurance and 20 years data retention

Saifun’s NROM technology is a leading-edge NVM technology that stores two or four bits within one memory cell. NROM can be used for all major non-volatile memory applications such as code flash, data flash, EEPROM and embedded-flash.

About Saifun

Founded in 1997, Saifun Semiconductors develops, designs, licenses, manufactures and markets a diversified range of leading-edge non-volatile memory (NVM) solutions, allowing superior performance, reliability and cost optimization. Saifun’s patented

NROM technology is used by leading flash manufacturers which have adopted the innovative NROM technology for a wide variety of applications. NROM technology is utilized by Saifun and its partners – including leading companies such as Infineon Technologies AG (FSE, NYSE: IFX), AMD (NYSE: AMD), Fujitsu Limited (TSE:6702) Macronix (NASDAQ: MXICY) and Tower (NASDAQ:TSEM) under different trademarks such as “TwinFlash”, “MirrorBit,” “N-bit”, “MicroFlash” and more.

For more information, visit www.saifun.com.

Saifun NROM is a registered trademark of Saifun Semiconductors Ltd.