SMTK SmartKem Inc

Simtek Corporation (NASDAQ:SMTK), the inventor, pioneer, and world�s premier supplier of nonvolatile static random access memory (nvSRAM) integrated circuits, today issued an open letter to shareholders discussing the status of the Company and recent stock performance. Highlights of Issues Discussed Reaffirmed guidance that product revenue for 2007 will be in the range of $32 to $33 million and gross margins near 50% Investment in new high density non-volatile RAM initiative in 2007 will be about $0.08 per share Analysis of Simtek�s share price, trading near historical lows, despite strong operating performance Projected revenue from new designs in the first nine months of 2007 exceeds that of all designs won during 2006 Four new products � 4 and 8 megabit devices with and without Real Time Clock, expected to be launched into production in 2008 Simtek-Cypress relationship providing many important benefits � -- Design engineering resources and disciplines enhanced significantly � -- Process relationship expected to provide access to manufacturing technologies beyond 130 nanometer to sub-100 nanometer process nodes � -- Customer confidence in Simtek nvSRAM strengthened, opening doors to higher volume programs than ever before Attached is the full content of an open letter to shareholders issued by Simtek President and CEO, Harold Blomquist.