Exhibit No.

Description

99.1

Press Release issued on September 24, 2003.

MICRON TECHNOLOGY, INC.

Date:

September 24, 2003

By:

/s/ W. G. Stover, Jr.

Name:

W. G. Stover, Jr.

Title:

Vice President of Finance and
Chief Financial Officer

Exhibit

Description

99.1

Press Release issued on September 24, 2003.

4th Qtr.

3rd Qtr.

4th Qtr.

Year Ended

Aug. 28,

May 29,

Aug. 29,

Aug. 28,

Aug. 29,

2003

2003

2002

2003

2002

Net sales

$

888.5

$

732.7

$

748.0

$

3,091.3

$

2,589.0

Cost of goods sold (1)

719.0

661.7

957.2

3,112.0

2,699.6

Gross margin

169.5

71.0

(209.2

)

(20.7

)

(110.6

)

Selling, general and administrative

82.2

87.2

95.9

358.2

332.3

Research and development

166.1

161.7

136.5

656.4

561.3

Restructure charge (2)

6.7

(5.4

)

—

109.2

—

Other operating expense (3)

20.1

11.2

26.0

42.0

21.1

Operating loss

(105.6

)

(183.7

)

(467.6

)

(1,186.5

)

(1,025.3

)

Interest income (expense), net

(8.5

)

(8.3

)

4.1

(18.4

)

34.5

Other non-operating income (expense)

1.0

1.0

(0.9

)

4.7

(7.7

)

Income tax (provision) benefit (4)

(10.1

)

(23.9

)

(122.1

)

(73.0

)

91.5

Net loss

$

(123.2

)

$

(214.9

)

$

(586.5

)

$

(1,273.2

)

$

(907.0

)

Loss per share: (5)

Basic

$

(0.20

)

$

(0.36

)

$

(0.97

)

$

(2.11

)

$

(1.51

)

Diluted

(0.20

)

(0.36

)

(0.97

)

(2.11

)

(1.51

)

Number of shares used in per share calculations:

Basic

609.5

608.3

604.0

607.5

601.5

Diluted

609.5

608.3

604.0

607.5

601.5

4th Qtr.

3rd Qtr.

4th Qtr.

Year Ended

Aug. 28,

May 29,

Aug. 29,

Aug. 28,

Aug. 29,

2003

2003

2002

2003

2002

Operating loss:

As reported

$

(105.6

)

$

(183.7

)

$

(467.6

)

$

(1,186.5

)

$

(1,025.3

)

Period-end inventory write-down

4.2

14.6

173.6

4.2

173.6

Estimated net effect of previous write-downs

(76.3

)

(168.1

)

(43.0

)

(179.1

)

(497.8

)

Restructure and related charges

6.7

(6.1

)

—

116.3

—

As adjusted

$

(171.0

)

$

(343.3

)

$

(337.0

)

$

(1,245.1

)

$

(1,349.5

)

As of

Aug. 28,

May 29,

Aug. 29,

2003

2003

2002

Cash and short-term investments

$

921.8

$

1,003.8

$

985.7

Receivables

642.5

495.5

537.9

Inventories (1)

417.4

431.1

545.4

Total current assets

2,037.0

1,962.1

2,118.8

Property, plant and equipment, net

4,510.5

4,576.2

4,699.5

Restricted cash (6)

125.2

101.7

51.6

Total assets

7,158.2

7,142.6

7,555.4

Accounts payable and accrued expenses

714.7

631.3

554.1

Current portion of long-term debt

88.9

93.7

93.1

Total current liabilities

993.0

895.3

752.7

Long-term debt (7)

997.1

1,002.8

360.8

Redeemable common stock (5)

66.5

64.9

60.2

Shareholders’ equity (8)

4,971.0

5,087.2

6,306.4

Year Ended

Aug. 28,

Aug. 29,

2003

2002

Net cash provided by operating activities

$

284.2

$

578.1

Net cash used for investing activities

(518.1

)

(513.9

)

Net cash provided by (used for) financing activities

406.0

(135.1

)

Depreciation and amortization

1,209.9

1,177.4

Expenditures for property, plant and equipment

(821.5

)

(759.9

)

Payments on equipment purchase contracts

(143.2

)

(122.3

)

Noncash equipment acquisitions on contracts payable and capital leases

292.1

138.7

(1)

Charges to write down the Company’s work in process and finished goods inventories to their estimated market values were $4 million, $15 million and $174 million for the fourth quarter and third quarter of fiscal year 2003 and the fourth quarter of fiscal 2002, respectively, and were $307 million and $376 million for fiscal years 2003 and 2002, respectively.  The write-down in the fourth quarter of fiscal 2003 related primarily to Flash products.  Cost of goods sold in fiscal 2003 also includes a $7 million write-down of raw materials and work in process inventories associated with products discontinued in connection with the Company’s restructure activities.  See Note (2).

(2)

In the second quarter of fiscal 2003, the Company initiated a series of cost-reduction measures.  In connection with its restructure plan, the Company’s results of operations in fiscal 2003 include a restructure charge of $109 million and other restructure-related charges of $7 million, which are included in cost of goods sold to write down the carrying value of raw materials and work in process inventories associated with discontinued products.  The restructure charge includes the write-down of equipment of $51 million, severance and other termination benefits of $26 million, the write-off of certain intangible assets of $19 million, and other costs totaling $13 million.  The Company’s restructure charge in the fourth quarter of fiscal 2003 primarily reflects changes in estimated losses associated with assets held for sale.

(3)

Other operating expense in the fourth quarter of fiscal 2003 includes losses net of gains on write-downs and disposals of semiconductor equipment of $22 million and gains of $2 million from changes in currency exchange rates.  Other operating expense in the fourth quarter of fiscal 2002 includes losses net of gains on write-downs and disposals of semiconductor equipment of $17 million and losses of $11 million from changes in currency exchange rates.

Other operating expense in fiscal 2003 includes losses net of gains on write-downs and disposals of semiconductor equipment of $42 million and losses of $11 million from changes in currency exchange rates.  Other operating expense in fiscal 2003 is net of $14 million in receipts from the U.S. government in connection with anti-dumping tariffs.  Other operating expense in 2002 includes losses net of gains on write-downs and disposals of semiconductor equipment of $27 million.

(4)

Income taxes for fiscal 2003 primarily reflect taxes on the Company’s non-U.S. operations.  Beginning with the fourth quarter of fiscal 2002, the Company recognized no tax benefit from its domestic net operating losses in accordance with Statement of Financial Accounting Standards No. 109.

(5)

On April 22, 2002, the Company acquired substantially all of the assets of Toshiba Corporation’s (“Toshiba”) DRAM business as conducted by Dominion Semiconductor, L.L.C. located in Virginia.  The total purchase price of $328 million included cash and 1.5 million shares of the Company’s common stock, which was valued at $58 million on the date of the acquisition.  The Company granted Toshiba an option to require the Company to repurchase on October 21, 2003, all of these shares for approximately $68 million in cash.  The option expires if the closing price of the Company’s common stock is at or above $45.05 per share for 20 consecutive trading days.  Accretion of the redeemable common stock toward its redemption amount was $6.3 million for fiscal 2003 and $2.1 million for fiscal 2002.

(6)

On March 13, 2003, TECH Semiconductor Singapore Pte. Ltd. (“TECH”), a memory manufacturing joint venture in which the Company is a shareholder, refinanced its then existing credit facility by entering into a new $250 million credit facility.  In connection therewith, $50 million previously pledged by the Company as cash collateral with respect to TECH’s credit facility was re-pledged and supplemented with an additional $50 million.  In the event the cash collateral is used to discharge obligations of TECH that are unpaid and due under the TECH credit facility, certain shareholders of

TECH have agreed to indemnify the Company for approximately one-half of the amount of the cash collateral used to satisfy such obligations.

(7)

During the second quarter of fiscal 2003, the Company incurred debt totaling $706 million, including $633 million for 2.5% Convertible Subordinated Notes due February 1, 2010 (the “Notes”).  The Notes are convertible through February 1, 2010, into approximately 53.7 million shares of the Company’s common stock at a conversion price of $11.79 per share.  The Company may redeem the Notes after February 6, 2006 at declining premiums to par.  See Note (8).

During the fourth quarter of fiscal 2003, the Company entered into an interest rate swap agreement, beginning August 29, 2003, to effectively swap the fixed interest rate on the Notes to a variable interest rate based on the 3-month LIBOR less 65 basis points (0.49% as of August 29, 2003).  The swap terminates after February 6, 2006 if the closing price of the Company’s common stock is at or exceeds $14.15.

(8)

Concurrent with issuance of the Notes, the Company purchased call spread options (the “Call Spread Options”), covering 53.7 million shares of the Company’s common stock, which is the number of shares issuable upon conversion of the Notes in full.  The Call Spread Options are designed to mitigate dilution from the conversion of the Notes and have a lower strike price of $11.79 and a higher strike price of $18.19.  The Call Spread Options may be settled at the Company’s option either in cash or net shares and expire on January 29, 2008.  The Call Spread Option transactions, including fees and costs of $109 million, are accounted for as capital transactions.