ITU Ventures Announces Sale of Coatue Corporation to AMD; Acquisition Demonstrates ITU Ventures' Success in Delivering Value to its Corporate Partners

LOS ANGELES--()--Aug. 6, 2003--ITU Ventures, the leading seed-stage venture capital firm that invests in and develops companies that commercialize technologies affiliated with research universities, today announced the sale of portfolio company Coatue Corporation, of Woburn, Mass., to Advanced Micro Devices, Inc. (NYSE:AMD), of Sunnyvale, Calif., for an undisclosed amount.

Coatue has been developing a new generation of memory chips based on a proprietary electronic-polymer technology that promises to offer both greater performance and lower cost than current memory devices. Coatue's technology combines DRAM speed, Flash non-volatility, and low power consumption into a single universal memory chip. Storage density and cost per bit for Coatue's products are intended to be superior to conventional silicon memory products. Furthermore, Coatue's polymer memory materials have been designed to be fully compatible with standard silicon manufacturing. The improvements in cost and functionality that could arise from Coatue's technology would enable new applications previously unachievable with conventional memory chips, such as instant boot computers, integrated PCs on a single chip, solid state video storage, and more. Subsequent to the sale, AMD contributed Coatue, along with other assets of its Flash Memory Group, to FASL LLC, a joint venture with Fujitsu, announced July 14, 2003.

"We are pleased with the sale of Coatue to an industry leader such as AMD. FASL LLC's leadership in non-volatile memory technologies coupled with Coatue's new class of polymer-based technologies creates a powerful combination," said Andrew Murray, Principal, ITU Ventures. "The acquisition of Coatue, less than three years after its formation, illustrates the value that early-stage technologies can have when combined with first-class entrepreneurs and strategic seed capital. Today's announcement validates and reinforces ITU's strategy in the area of polymer-based electronics, where ITU has been an active investor."

The transaction also represents ITU's ability to provide value- added technology access and exposure to its corporate partners. AMD is an investor in one of ITU's early-stage venture capital funds and both parties have benefited from this partnership.

"ITU was an early investor in Coatue and they have supported Coatue's efforts in a number of key strategic areas," said Andrew Perlman, founder of Coatue Corporation and Director, Business Development, for FASL LLC. "As a founder of two venture-backed startups, I have been pleased with ITU's skills and expertise. Most importantly in Coatue's case, we were provided access to strategic partners such as AMD."

About ITU Ventures

ITU Ventures (www.itu.com) is the premier venture capital firm serving the unique needs of technology businesses emerging from the nation's leading research universities. With a capital base of over $80 million from strategic institutional investors, ITU Ventures invests in early-stage companies that are commercializing next-generation communication and semiconductor-related technologies. ITU Ventures was founded in 2000 and is based in Los Angeles. ITU Ventures currently works with more than 25 of the leading research universities in the United States.

Contacts

For ITU Ventures:
The Rose Group
Elana Weiss/Jeff Rose, 310-280-3710
Elana@therosegrp.com
Jeff@therosegrp.com

Contacts

For ITU Ventures:
The Rose Group
Elana Weiss/Jeff Rose, 310-280-3710
Elana@therosegrp.com
Jeff@therosegrp.com