Micron Technology, Inc., Purchases Fabrication Facility from ZiLOG, Inc., to Support Image Sensor Production; Industry's No. 1 Supplier of CMOS Image Sensors Adds Capacity to Meet Customer Demand

Micron purchased the 8-inch wafer fabrication facility andsurrounding land from ZiLOG and its affiliate, ZiLOG Mod III, Inc.,for a total consideration of $5 million. ZiLOG Mod III received about$3.9 million for the facility and 19 acres of the surrounding land,and ZiLOG received $1 million for its vacant 19 acres at the site. Thetransaction costs will be apportioned on a prorated basis to theparties. Micron plans to invest in facility improvements and expectsto bring the facility online by the end of the year. Micron alsoexpects to hire operators, technicians and support staff at thefacility.

"Micron is the world's leading supplier of advanced image sensorsolutions in applications ranging from mobile camera phones and PCcameras to healthcare, security and automotive markets," said SteveAppleton, Micron chairman, CEO and president. "This acquisition allowsus to move the final stages of image sensor silicon processing andother critical manufacturing steps from our Boise manufacturingoperations to this new facility, which at the same time will free upspace in our existing facilities and allow us to continue to meetexpanding demand for our products."

"We are very pleased to close this transaction with a company likeMicron Technology whose leadership is well known around the world,"said ZiLOG, Inc, Chief Financial Officer Perry Grace. "The transactionis a very positive development for ZiLOG and ZiLOG Mod III, Inc.shareholders, Micron and most importantly for the Nampa community."

The sale of the MOD III facility to Micron includes all land andbuildings owned by ZiLOG Mod III, Inc. and certain vacant propertyowned by ZiLOG, Inc. ZiLOG Mod III, Inc. was a special subsidiaryestablished by ZiLOG, Inc. in 2002 to hold the Mod III assets pendingtheir sale.

The cost of the transaction to ZiLOG is estimated to be $300,000and the costs to liquidate ZiLOG Mod III, Inc. are estimated to be$200,000 which will be netted from the proceeds. Of the $5 millionproceeds from the sales, it is anticipated that approximately $2.5million will be distributed to holders of ZiLOG Mod III, Inc. Series APreferred Stock and $2 million will be retained by ZiLOG, Inc. Thistransaction represents the sale of the remaining assets in Mod IIIand, as such, ZiLOG Mod III, Inc. expects to seek a shareholder voteto liquidate and distribute net proceeds to its preferred shareholdersat the conclusion of that process. The estimated distribution to theZiLOG Mod III, Inc. shareholders reflects a reimbursement to ZiLOG ofcosts it has incurred totaling approximately $800,000. These costsinclude sustaining costs incurred by ZiLOG on behalf of ZiLOG Mod III,Inc. since the last sale of assets in 2004.

About Micron Technology, Inc.

Micron Technology, Inc., is one of the world's leading providersof advanced semiconductor solutions. Through its worldwide operations,Micron manufactures and markets DRAMs, NAND flash memory, CMOS imagesensors, other semiconductor components, and memory modules for use inleading-edge computing, consumer, networking, and mobile products.Micron's common stock is traded on the New York Stock Exchange (NYSE)under the MU symbol. To learn more about Micron Technology, Inc.,visit www.micron.com.

About ZiLOG, Inc.

ZiLOG, Inc. (NASDAQ:ZILG) Founded in 1974, ZiLOG won internationalacclaim for designing one of the first architectures in themicroprocessors and microcontrollers industry. Today, ZiLOG is aleading global supplier of microcontrollers and universal remotecontrol solutions. It designs, manufactures and markets a broadportfolio of devices for embedded control and communicationapplications used in consumer electronics, home appliances, securitysystems, point of sales terminals, personal computer peripherals, aswell as industrial and automotive applications. ZiLOG is headquarteredin San Jose, California, and employs approximately 500 peopleworldwide with sales offices throughout Asia, Europe and NorthAmerica. For more information about ZiLOG and its products, visit theCompany's website at: www.ZiLOG.com.

Micron and the Micron orbit logo are trademarks of MicronTechnology, Inc. All other trademarks are the property of theirrespective owners. ZiLOG is a trademark or registered trademark ofZiLOG, Inc. in the United States and in other countries. Other productand or service names mentioned herein may be trademarks of thecompanies with which they are associated.

This release contains forward-looking statements, includingstatements regarding the amount of proceeds available for distributionto shareholders of ZiLOG Mod III, Inc. These relate to expectations,plans or prospects for ZiLOG, Inc. and ZiLOG Mod III, Inc. that arebased upon the current expectations and beliefs of ZiLOG's and ZiLOGMod III, Inc.'s management and are subject to certain risks anduncertainties that could cause actual results to differ materiallyfrom those described in the forward-looking statements. For example,the amount of proceeds which are ultimately available for distributionto ZiLOG Mod III's shareholders could vary based on the actual costsof the sale and the liquidation and the value of contingentliabilities of ZiLOG Mod III, Inc. Notwithstanding changes that mayoccur with respect to matters relating to the forward-lookingstatements, ZiLOG does not expect to, and disclaims any obligation to,update such statements. ZiLOG, however, reserves the right to updatesuch statements or any portion thereof at any time for any reason.

This press release contains forward-looking statements regardingMicron's plans and expectations for the Nampa facility. Actual eventsor results may differ materially from those contained in theforward-looking statements. Please refer to the documents Micron fileson a consolidated basis from time to time with the Securities andExchange Commission, specifically Micron's most recent Form 10-K andForm 10-Q. These documents contain and identify important factors thatcould cause the actual results for Micron on a consolidated basis todiffer materially from those contained in our forward-lookingstatements (see Certain Factors or Risk Factors). Although we believethat the expectations reflected in the forward-looking statements arereasonable, we cannot guarantee future results, levels of activity,performance or achievements. We are under no duty to update any of theforward-looking statements after the date of this press release toconform to actual results.