Microchip Technology and Adcon Telemetry Enter Technology

							Microchip Technology and Adcon Telemetry Enter
Technology Licensing Agreement
                                                                             FOR IMMEDIATE RELEASE
Editorial Contact
Paul Loughran, (480) 792-7182
paul.loughran@microchip.com
                                                                            Reader/Literature Inquiries:
                                                                               Web:www.microchip.com
Adcon Telemetry AG                                                                 Office(480) 792-7668
Andrea Wölbitsch
Tel.: +43 2243 38280-0
Investor-relations@adcon.at
     Leading embedded control solutions provider to leverage silicon technology for wireless market

CHANDLER, Ariz. – Aug. 19, 2002 – Microchip Technology (Nasdaq: MCHP) and Adcon Telemetry
(NM: TLT), headquartered in Vienna, Austria, announced today they signed a strategic licensing
agreement to accelerate the development of wireless home networks. Under the terms of this
agreement, Microchip has licensed a direct sequence spread spectrum (DSSS) transceiver utilizing
Adcon’s IEEE 802.15.4/ZigBee-compliant transceiver technology.

The agreement enables Microchip to develop products specifically for the low-power wireless,
consumer, appliance and home-automation markets.

Microchip is a leading supplier of field-programmable RISC microcontrollers, which serve 8- and 16-bit
embedded control applications, and a broad spectrum of high performance linear and mixed-signal,
power management and thermal management devices. Adcon's technological core competence is the
transmission of small- to medium-size data volumes over short- to middle-range distances at very low-
energy consumption and attractively low cost.

The ZigBee standard defines “lowest-cost and lowest-power consumption” communications for
household appliances and building automation, and is a cost-effective alternative to Bluetooth for all
applications involving small volumes of data transmitted over longer distances. Both Microchip and
Adcon played key roles in setting the ZigBee standard.

“This exchange signifies the beginning of what we hope will be a wide collaboration between Microchip
and Adcon in advancing wireless solutions and the widespread adoption of the ZigBee standard,” said
Dick Fisher, Director of Microchip’s Radio Frequency Products Group. “We believe that our strong
position in the home-automation market and high-volume manufacturing coupled with Adcon’s expertise
in smart wireless technology ideally positions our two companies to bring unique low-power solutions to
the home-automation arenas.”

“We are extremely pleased to see one of the leading industry names endorsing Adcon as its technology
partner. While path-breaking for the strategic development of our technology, the agreement provides
evidence that IEEE 802.15.4/ZigBee is finding rapid acceptance as low cost data transmission standard
within the community of early technology adopters and an early indicator of mass market potential“,
says Claus Wortmann, COO of Adcon. “As our relationship with Microchip expands, the challenge will
be to further measure up to the standards of excellence imposed by our partner and at the same time
ensure that Adcon‘s R&D will remain at the cutting edge in an emerging business with radically differing
dynamics and growth characteristics.”

Microchip has integrated analog technology, peripherals and features to meet today's demanding
design requirements. Our broad spectrum of analog products addresses thermal management, power
management, mixed-signal, linear and interface solutions. Combined with “Intelligent Analog”
microcontrollers, Microchip offers an extensive analog portfolio for thousands of high-performance
design applications in the automotive, communications (wireless), consumer, computing and industrial
control markets.
Microchip Technology Inc. manufactures the popular PICmicro® field-programmable RISC
microcontrollers, which serve 8- and 16-bit embedded control applications, and a broad spectrum of
high performance linear and mixed-signal, power management and thermal management devices. The
Company also offers complementary microperipheral products including interface devices; microID®
RFID devices; serial EEPROMs; and the patented KEELOQ® security devices. This synergistic product
portfolio targets thousands of applications and a growing demand for high-performance designs in the
automotive, communications, computing, consumer and industrial control markets. The Company's
quality systems are ISO 9001 (1994 version) and QS9000 (1998 version) certified. Microchip is
headquartered in Chandler, Arizona with design facilities in Mountain View, California and Bangalore,
India; semiconductor fabrication facilities in Tempe and Chandler, Arizona and Puyallup, Washington;
and assembly and test operations near Bangkok, Thailand. Microchip employs approximately 3,200
people worldwide and has sales offices throughout Asia, Europe, Japan and the Americas. More
information on the Company can be found at www.microchip.com.

Adcon Telemetry AG is a global player in data transmission technologies based on private digital radio.
As a system house for wireless communication Adcon supports all major communication standards in
the license-free ISM frequency range. Adcon’s products range from radio based data acquisition
systems to standardized radio modems as well as OEM radio boards and ASIC technology for
integration into third party devices. For further information please visit our website at www.adcon.com.

Note: The Microchip name and logo, PIC, PICmicro, microID and KEELOQ are registered trademarks of
Microchip Technology Inc. in the USA and other countries. SPI is a trademark of Motorola. All other
trademarks are the property of their respective owners.

**product photo is available through editorial contact**

MICROCHIP CAUTIONARY STATEMENT

The statements in this release relating to the agreement providing evidence that ZigBee is finding rapide
acceptance as a low cost data transmission standard within the community of early adopters and an
early indicator of mass market potential, and Microchip’s belief that its strong position in the home-
automation market and high-volume manufacturing coupled with Adcon’s expertise in smart wireless
technology ideally positions Microchip and AdCon to bring unique low-power solutions to the home-
automation arena are forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. This statement involves risks and uncertainties that
could cause actual results to differ materially, including, but not limited to: failure of Micrcochip to
develop products under the Agreement; market acceptance of the products developed under the
Agreement; timely introduction of products developed under the Agreement; competitive factors, such
as competing architecturs and manufacturing technologies and acceptanve of newprodcuts in the
markets we generally serve; pricing pressures; demand for Mirochip’s products and those of its
customers; difficulties associated with integrating AdCon’s and Microchip’s technologies; and general
economic, political and industry conditions.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Form 10-K
and 10-Q as filed with the U.S. Securities and Exchange Commission. You can obtain copies of Forms
10-K and 10-Q and any other relevant documents for free at the SEC's Web site (www.sec.gov) or from
commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements,
which speak only as of the date such statements are made. Microchip does not undertake any
obligation to publicly update any forward-looking statements to reflect events, circumstances or new
information after this press release, or to reflect the occurrence of unanticipated events.