1123 Cadillac Court,…

                                                  1123 Cadillac Court, Milpitas CA 95035


PRESS RELEASE

For Immediate Release

GRANDIS AWARDED NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY (NIST) GRANT FOR NEXT-GENERATION MEMORY
DEVELOPMENT

MILPITAS, Calif., Oct. 09, 2007 -- Grandis, Inc., today announced that it
has received an Advanced Technology Program (ATP) grant of US$2 million
from the U.S. Commerce Department's National Institute of Science and
Technology (NIST) for use in the development of its spin-transfer torque
random access memory (STT-RAM) technology. STT-RAM is a next-
generation, non-volatile memory (NVM) solution designed to enable high
scalability and unlimited endurance, while consuming less power than
existing mainstream memories.

Yiming Huai, Ph.D., co-founder and chief technology officer of Grandis
stated, "It is an honor that our STT-RAM technology has been recognized by
the NIST. This generous support will significantly strengthen U.S. leadership
in this critical technology and play an important role in helping us to
accelerate the commercialization of STT-RAM for both the embedded and
stand-alone memory markets."

As semiconductor technology scales to smaller feature sizes to support
consumer demand for electronic devices with greater mobility and
functionality, current mainstream semiconductor memories subsequently
encounter significant performance and reliability limitations. At the same
time, the integration of numerous types of volatile and non-volatile memory
to support the increased functionality of these consumer products also
creates numerous IC design and cost challenges. STT-RAM is a universal
memory technology that addresses these challenges by enabling fast
read/write capability, significantly lower power consumption and excellent
scalability to future technology nodes.

Under the leadership of principal investigator, Dr. Eugene Chen, and
business manager, Dr. Alexander Driskill-Smith, Grandis will leverage the
NIST funding to explore several development areas--including innovations in
materials, devices and circuitry. The goal of this effort is to enhance the
performance of STT-RAM and enable memory devices with greater density at
a lower cost per die.
                                                   1123 Cadillac Court, Milpitas CA 95035


The goal of the ATP program is to accelerate the development and broad
dissemination of emerging or enabling technologies that can lead to
revolutionary new products and services. ATP grant recipients are selected
based on a rigorous, competitive peer review process, where they must
meet stringent scientific and technical merit requirements, and demonstrate
strong potential for broad-based economic benefits for the nation.

About Grandis, Inc.

Grandis is the pioneer in the development of spin-transfer torque RAM (STT-
RAM), a universal and scalable memory solution. Grandis licenses its
technology to companies that are developing a variety of products
incorporating stand-alone and embedded STT-RAM memory. It offers its
licensees a complete range of support services from process installation
through qualification. By combining non-volatility and high performance
with low-power consumption and low cost, STT-RAM can revolutionize the
performance of electronic products in many areas. Grandis was established
in 2002, and is headquartered in Silicon Valley, California. Investors include
Applied Ventures LLC, Sevin Rosen Funds, Matrix Partners, Incubic and
Concept Ventures. Additional information about the company is available on
the Internet at www.grandisinc.com


Contact for Grandis, Inc.

Grandis, Inc.
Corporate Headquarters
1123 Cadillac Court
Milpitas, CA 95035
Tel +1 (408) 945-2160
Fax +1 (408) 945-2161
info@grandisinc.com


Press and Analyst Contact
Lisa Gillette-Martin
MCA, Inc.
Tel +1 (650) 968-8900 x115
lgmartin@mcapr.com