$45 Million for Start-Up Crocus

Crocus Technology
secures €34 million ($45 million) in series D funding.

A new private investor, Industrial Investors from Russia,
joined the round led by French Idinvest Partners.

Major investors Sofinnova Ventures, Innovation
Capital, Nanodimension, and Ventech participated, underscoring seven years’
support. Rusnano also took part.

The new funding enables Crocus to:

• Ramp up manufacturing at TowerJazz Semiconductors
• Qualify its jointly owned fab, Crocus Nano Electronics and release the first
  engineering wafers during the summer
• Together with its partner IBM, accelerate the development of generation 3
  technology for secure microcontrollers. They will target primarily high-end
  smart cards, a market that reached 7.9 billion units in 2012 (ABI Research, May
  2013). Crocus is positioning to capture 30% of this market by bringing smart
  card makers new enhanced-performance features at lower cost.
• Launch a magnetic sensor product line, which leverages the same Magnetic Logic
  Unit (MLU) manufacturing platform technology, in a market expected to reach the
  $2 billion per year mark in the near term.

"Crocus is now fully funded to deliver on the
last key milestone in the industrial processing of its now mature Magnetic
Logic Unit technology," said Bertrand Cambou, CEO and executive chairman, Crocus.
"The commitment from our impressive group of investors along with the
validation of our technology by strategic customers put us in a good position
to prepare for product revenue around the end of this year. Combined with our
steadily growing licensing and services business, we anticipate reaching cash
flow break-even point by the end of next year."

Crocus has pioneered the development of MLU, a
CMOS-based rugged technology. It brings new advantages in speed, performance
and security at lower cost to a range of next-generation electronics. It brings
high sensitivity, low-noise, high temperature performance to magnetic sensors.

Pinot de Villechenon & Associés acted as legal advisors
to Crocus for the funding.

Founded in 2004, Crocus is
led by a management team with high-level industry experience forged in
Motorola, AMD, Intel, Texas Instruments and Gemalto. It has US operations in
Santa Clara, CA, and offices in Grenoble and Gardanne, France. It jointly owns
Crocus Nano Electronics, a Russian-based advanced magnetic semiconductor
manufacturing facility, with investment firm Rusnano.