Staktek and SMART Modular Technologies Sign Licensing Agreement for ArctiCore™ and Stacking Technologies

Business Wire, Sept 22, 2005

AUSTIN, Texas -- Staktek Holdings, Inc. (Nasdaq:STAK), a world-leading provider of intellectual property and services for next-generation, chip-stacking and module technologies used in high-speed, high-capacity systems, and SMART Modular Technologies, Inc. (SMART), a leading provider of memory products, announced that the two companies have signed a license agreement that provides SMART with access to Staktek's new ArctiCore(TM) module technology, as well as Staktek's Value Stakpak(R), Performance Stakpak(R) and High Performance Stakpak(R) package stacking technologies.

Under the terms of the agreement, SMART will be able to use Staktek's new ArctiCore technology for module product offerings in SMART's existing and emerging markets. In addition, SMART will be licensed to offer leaded, package stacking technology and BGA stacking technology for packaged devices, such as DRAM, SRAM and Flash memory.

"We are very pleased to strengthen our existing relationship with Staktek by now licensing Staktek intellectual property. We expect that SMART and our customers will benefit by leveraging the various advantages offered by ArctiCore," said Iain MacKenzie, President and CEO of SMART Modular Technologies. "The thermal, electrical and mechanical properties of the ArctiCore technology position us well to offer our customers additional high-capacity options over standard memory modules. With ongoing support from Staktek, SMART is fully enabled through this licensing agreement to continue delivering the latest high-technology memory modules in the industry. SMART products containing the ArctiCore technology will be held to the same levels of reliability and performance that SMART customers have grown to count on," stated Mr. MacKenzie.

"SMART's products are recognized around the world for their high-quality, diverse offerings," stated Wayne Lieberman, President of Staktek. "This new agreement extends our relationship to include licensing for Staktek's entire set of solutions, giving SMART the added IP support from Staktek's portfolio to enhance its market leadership in next-generation, high-capacity solutions across multiple memory formats," concluded Mr. Lieberman.

ArctiCore is the latest groundbreaking innovation from Staktek. It's a patent-pending technology that enables enterprise and consumer OEMs to cost-effectively increase available memory capacity to meet expanding application performance requirements. Utilizing a double-sided, multi-layer flexible circuit with embedded interconnect technology folded around a rigid thermal core, ArctiCore dramatically increases the available area for mounting devices while enhancing thermal management, reliability and thinness compared to conventional module technologies.

About SMART Modular Technologies:

SMART Modular Technologies is a leading provider of memory products and liquid-crystal display (LCD) solutions, offering more than 500 standard and custom products to top-tier OEMs working in computer, industrial, networking, gaming, telecommunications and embedded applications. Taking innovations from the design stage through manufacturing and delivery, SMART has developed a comprehensive memory product line that includes DRAM, SRAM and Flash in various form factors. The Display Products Group operates from two locations, the U.S. and Asia (through its affiliate, Estecom), allowing it to quickly and cost-effectively deliver worldwide thin film transistors (TFT) LCD solutions to customers developing casino gaming systems as well as embedded applications such as kiosk, ATM, point-of-service and industrial control systems. Manufacturing facilities, design centers and sales offices in the U.S., Europe, Asia and Latin America enable SMART to provide its customers with proven expertise in international logistics, asset management and supply chain management.

About Staktek Holdings:

Staktek is a world-leading provider of intellectual property and services for next-generation, chip-stacking and module technologies used in high-speed, high-capacity systems. Staktek's Performance, Value and High Performance Stakpak(R) memory solutions increase operational performance by doubling, tripling or quadrupling the amount of memory in the same physical footprint as required by standard packaging technology. With an IP portfolio of more than 150 patents and patent applications pending, the company offers flexibility for customers, including outsourced manufacturing, technology licensing and custom engineering. Headquartered in Austin, Texas, Staktek operates two world-class manufacturing locations in Austin and Reynosa, Mexico. For more information, visit http://www.staktek.com.

SMART Modular Technologies and Staktek are trademarks of SMART Modular Technologies, Inc. and Staktek Group L.P., respectively. All other products names noted herein may be trademarks of their respective holders.

Staktek Cautionary Language:

This press release contains forward-looking statements. These statements are generally accompanied by words such as "expect," "believe" and similar expressions. Our forward-looking statements are based on our current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Risks and uncertainties that may cause future results to differ include, but are not limited to, the risk that we are unable to protect our intellectual property rights associated with ArctiCore; the risks associated with intellectual property litigation or other litigation; the risk that ArctiCore is not tested or accepted in a timely fashion; risks related to qualifying ArctiCore in our current and targeted customers' future products; the risk of expanding into new markets with ArctiCore without past experience in those markets; the risk that a competitor or significant customer develops or adopts an alternative solution or competing product to ArctiCore; the risk that demand for ArctiCore is lower than expected; the risk that we incur problems in our manufacturing processes or facilities manufacturing ArctiCore; risks related to product liability claims in connection with ArctiCore or in the event ArctiCore is used in defective products; and risks relating to increasing our royalty-based revenue through licensing ArctiCore.