Intel increases its equity investment in Thin Film Electronics ASA, and expands license field of use for TFE Technology

Oslo, Norway 26 June 2001 – Opticom ASA and its research and development subsidiary company developing polymer memory technology, Thin Film Electronics ASA (TFE), announce that TFE today has agreed on a second investment of NOK 70.7 million (US$ 7.85 million) from Intel Capital. The investment will be made by Intel Capital exercising all of its previously granted subscription rights, thereby increasing its shareholding to 13%. The subscription rights were granted as part of Intel Capital’s first investment in November 1999. Under certain circumstances, Intel Capital will have the right to convert its shareholding in TFE into ordinary shares of Opticom.

TFE also disclosed that it has entered into a second license agreement with Intel. The new license agreement is in the form of an Addendum Agreement to the original Development and Licensing Agreement, which was signed in November 1999. Under the new agreement, Intel has the right to take up a non-exclusive royalty bearing license under commercially confidential terms in additional fields of use. The expanded field of use is consistent with Intel’s right to license TFE’s polymer memory technology under the original Development and Licensing Agreement. Since the close of the first investment in November of 1999, Intel and TFE have been collaborating on the development of data storage module prototypes utilizing TFE’s thin polymer film technology.

Thomas Fussell, Chairman of Opticom said: ”We are pleased that Intel Capital has exercised all of its previously granted subscription rights and that Intel has expanded its license.”

”We are pleased with the results achieved in our joint technology development and prototyping work,” said Sanjay Panditji, Intel Vice President, New Business Group and Assistant Director, Intel Architecture Labs.

The terms of the Development and Licensing Agreement provide a framework for TFE and Intel to enter into a possible Productization Phase. Any Productization Agreement would be subject to approval by both parties. Further announcements regarding whether a Productization Agreement has or has not been signed will be made in due course. In the meantime joint development work continues under the terms of the original agreement.