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SST Unveils Industry's Thinnest and Smallest SPI Serial Flash Memory in a Z-Scale Package

This is the final version of the news release sent out this morning, which was found to have a grammatical error at the beginning of the second paragraph.
Please excuse any inconvenience this causes.

Silicon Storage Technology
Richard Sawers
Tel: +44-1932-23 81 33
rsawers ( a ) sst.com

Bettina Lerchenmüller
Tel.: +49-8106-24 72 33
prismapr ( a ) compuserve.com

Press Release 01/2006

SST Unveils Industry's Thinnest and Smallest SPI Serial Flash Memory in a Z-Scale Package

New Z-Scale Package is Ideal for Space-Constrained, Small Form Factor Portable Applications

Sunnyvale, CA, August 2006 * * * SST (Silicon Storage Technology, Inc., NASDAQ: SSTI), a leader in flash memory technology, today announced an advanced Z-Scale Package (XFBGA) solution that enables customers to develop a wide range of revolutionary products based on the industry's smallest and thinnest form factor serial flash. The new ultra-thin Z-Scale Package is available for the SST25VF family of serial flash devices in densities ranging from 512 Kbit to 4 Mbit. With a maximum total height of only 0.4 mm and an area as small as 3mm2 (dependent on memory density), SST's Z-Scale Package is ideal for use in space- and height-constrained portable electronics, such as MP3 players, cell phones, camera modules and Bluetooth devices.

The new Z-Scale Package is a true wafer-level package, utilizing multi-layer metal interconnect and routing techniques. This level of interconnection redistributes the bonding pads of each chip evenly to external bumps that can be connected directly to the circuit board. This Z-Scale Package is ideal for SST's "low pin count" SPI Serial products for minimizing required board real estate and maximizing overhead clearance in aggressive physical designs. The Z-Scale Package is compatible with existing SMT (surface mount technology) infrastructures, requiring minimal investment on the part of manufacturers. In addition, by using the same footprint for serial flash devices ranging from 512 Kbit through 4 Mbit densities, the Z-Scale Package provides an easy migration path for customers as their memory requirements change.

"Today's most popular consumer electronic devices, such as MP3 players, cell phones and digital cameras are moving towards smaller, thinner and lighter products," said Douglas Lee, vice president of SST's Application Specific Memory Products group. "The Z-Scale Package strategy for our 25 Series serial flash devices is perfectly in tune with the direction of the portable electronics market. Leveraging our new package solution, customers can achieve ultra-portable designs that are impossible with standard sized serial flash packages. In addition, the pin count reduction and significant board space savings enabled by the Z-Scale Package provide designers more room to increase functionality in their products, which is especially critical in the fast-paced consumer electronics market."

SST offers this lead-free (non-Pb) Z-Scale Package for its SST25VF family of serial flash devices in densities ranging from 512 Kbit to 4 Mbit. Samples of SST25VF512 (512 Kbit) and SST25VF020A (2 Mbit) serial flash devices in this advanced Z-Scale Package are available now.

About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The Company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST's non-memory products include NAND controller-based products, smart card ICs, flash microcontroller and radio frequency ICs and modules. Information on SST can be found on the company's Web site at http://www.sst.com and further information about the company's comprehensive list of product offerings can be requested via email to literature ( a ) sst.com.

Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking statements regarding flash memory and non-memory market conditions, SST's future financial performance, the performance of new products and SST'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 SST's customers, as well as other risks detailed from time to time in the SST's SEC reports, including the Annual Report on Form 10-K for the year ended December 31, 2005 and on Form 10-Q for the quarters ended March 31 and June 30, 2006.

* * *
The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. Z-Scale Package is a trademark 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.