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Micron Technology Amends Inotera Memories Joint Venture With Nanya Technology Corporation

Stocks in this article: MU

BOISE, Idaho, Jan. 17, 2013 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq:MU) today announced that it has entered into agreements with Nanya Technology Corporation to amend their joint venture relationship involving Inotera Memories, Inc., a leading Taiwanese DRAM memory manufacturer, and to amend their joint development arrangement. The new agreements are effective immediately.

The amendments include a new supply agreement between Micron and Inotera pursuant to which Micron is transitioning to purchase all of Inotera's manufacturing output, with Micron purchasing substantially all of such output beginning in early 2013. Under the prior agreements, Nanya and Micron were each generally obligated to purchase half of Inotera's output. Commercial terms of the new supply agreement between Micron and Inotera have also changed. Under the new arrangement, Micron's purchase price for Inotera output is market based as opposed to the former margin sharing arrangement.

Additionally, Nanya will no longer participate in the DRAM technology joint development program with Micron, which was initiated when Micron and Nanya entered into the Inotera joint venture in 2008. Micron will also provide Nanya with a royalty-bearing technology license.

"Micron and Nanya have enjoyed a strong and productive technology and manufacturing alliance," said Micron CEO Mark Durcan. "Moving forward, we are enthusiastic about continuing to build on that success as we expand our cooperation with Inotera."

Micron and Nanya collectively will continue to hold a majority of Inotera's shares, with Nanya or its affiliated companies likely acquiring greater equity ownership over the next year. Micron and Nanya and their affiliates currently own approximately 40 percent and 29 percent, respectively, of Inotera's outstanding shares.

The agreements announced today do not change Micron's previously announced fiscal second quarter 2013 estimates for DRAM production bit growth, research and development, estimated quarter to date average selling price (including forecasted product mix for the quarter) and cost per bit.

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