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                                                                    EXHIBIT 99.1


ATMEL CORPORATION REINCORPORATES IN
DELAWARE

SAN JOSE, Calif.-(BUSINESS WIRE)-Oct. 18, 1999-Atmel Corporation (Nasdaq: ATML
- - news) today announced the completion of a change in its state of
incorporation from California to Delaware.

The change was accomplished by means of a merger of Atmel Corporation into its
wholly owned Delaware subsidiary of the same name. The reincorporation effects
only a change in the legal domicile of Atmel Corporation. It will not result in
any change of the name, business, management, fiscal year, assets, or
liabilities, Nasdaq National Market trading symbol (ATML), or location of the
principal facilities of the corporation.

The reincorporation proposal was approved by a majority of Atmel Corporation
shareholders at the company's Annual Meeting of Shareholders.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, California
with manufacturing facilities in Colorado Springs, Colorado, Nantes and
Rousset, France and Heilbronn, Germany. Atmel designs, manufactures and markets
on a worldwide basis advanced logic, mixed-signal, non-volatile memory, and RF
semiconductors. Atmel is also a leading provider of system level integration
semiconductor solutions using advanced CMOS, BiCMOS, BiPolar and SiGe process
technologies.

Atmel product and financial information are available from its Fax-on-Demand
service. In North America call 800/292-8635 or Internationally, call
408/441-0732. Requests may be made via e-mail to literature@atmel.com or by
visiting Atmel's web site at www.atmel.com.

Note to Editors: Atmel, the Atmel logo and combinations thereof and others
contained herein, are trademarks of Atmel Corporation.

Terms and product names in this document may be the trademarks of others.
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Contact:

     Atmel
     Mike Ross, 408/436-4229