Matrix Semiconductor Raises $52 Million Round of Financing; Industry Recognizes Potential of 3-D Semiconductor Technology

SANTA CLARA, Calif.--()--March 17, 2003--Matrix Semiconductor, a leading developer of high-density, low-cost three-dimensional semiconductors, today announced the closing of a $52 million round of financing. This financing follows the recent announcement of a $15 million strategic investment by Nintendo.

The new funds will be used to finance the commercialization of the 3-D technology and Matrix's ramp into high volume production. Matrix will begin shipping product this year.

New investors in Matrix participating in this round include: TeleSoft Partners, Benchmark Capital Europe, Integral Capital Partners, and Seagate Technology. The round also includes ongoing investments by Matrix's founders and other prior investors including: Benchmark Capital, Skymoon Ventures, and Western Technology Investment.

"We are extremely excited to join the group of investors working with this promising company," said Arjun Gupta, Founder and Managing Partner of Telesoft Partners, who will be joining Matrix's Board of Directors. "The markets for Matrix's breakthrough 3-D technology are very large, and we are convinced that Matrix has the seasoned management and business plan in place to be a truly successful company."

Matrix Semiconductor's innovations provide unique benefits to both the semiconductor and electronics industries. By layering integrated circuits vertically, Matrix can produce very dense chips at a much lower cost than existing technologies. Equally important, Matrix can achieve these benefits using the standard materials, equipment, and processes already present and very well understood in the world's semiconductor manufacturing foundries. Matrix's first product based on the 3-D technology is Matrix(TM) 3-D Memory, a high-density, low cost non-volatile memory ideally suited for the very large, highly price sensitive electronics markets.

About Matrix Semiconductor

Founded in 1998, Matrix Semiconductor, Inc. (Santa Clara, Calif.) has developed the means to create three-dimensional semiconductors using standard manufacturing techniques and materials. By optimizing use of a semiconductor wafer's area -- building "up" rather than "out" -- Matrix's 3-D technology produces highly dense chips at much lower costs than existing technologies. Matrix's first product, Matrix(TM) 3-D Memory (3DM), is a low cost, high density, non-volatile memory compatible with existing standards and targeted for use in millions of portable electronic devices. More information is available at http://www.matrixsemi.com/.

Contacts

Matrix Semiconductor, Inc.
Melissa Selcher, 408/969-4815
mselcher@matrixsemi.com

Contacts

Matrix Semiconductor, Inc.
Melissa Selcher, 408/969-4815
mselcher@matrixsemi.com