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| Delaware                                                            | 84-0962308                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| 1850      Ramtron Drive, Colorado Springs, CO | 80921           |
|-----------------------------------------------|-----------------|
| (Address      of principal executive offices) | (Zip      Code) |

| Common      Stock, $0.01 par value | Nasdaq      Global Market                       |
|------------------------------------|-------------------------------------------------|
| (Title      of Each Class)         | (Name      of each exchange on whichregistered) |

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TABLE OF CONTENTS

|         | PART I                                                                                                            | Page                            |
|--------------|-------------------------------------------------------------------------------------------------------------------|---------------------------------|
|         |                                                                                                              |                            |
| Item      1  | Business                                                                                                          |          4  |
| Item      1A | Risk Factors                                                                                                      |        14                  |
| Item      1B | Unresolved Staff Comments                                                                                         |        22                  |
| Item      2  | Properties                                                                                                        |        22                  |
| Item      3  | Legal Proceedings                                                                                                 |        22                  |
| Item      4  | Submission of Matters to a Vote of Security      Holders                                                     |        22                  |
|         |                                                                                                              |                            |
|         | PART II                                                                                                           |                            |
|         |                                                                                                              |                            |
| Item      5  | Market for Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities |        23                  |
| Item      6  | Selected Financial Data                                                                                           |        23                  |
| Item      7  | Management's Discussion and Analysis of Financial Condition      and Results of Operation                         |        23                  |
| Item      7A | Quantitative and Qualitative Disclosures about Market      Risk                                                   |        32                  |
| Item      8  | Financial Statements and Supplementary      Data                                                                  |        32                  |
| Item      9  | Changes In and Disagreements with      Accountants on Accounting and Financial Disclosure                         |        33                  |
| Item      9A | Controls and Procedures                                                                                           |        33                  |
| Item      9B | Other Information                                                                                                 |        33                  |
|         |                                                                                                              |                            |
|         | PART III                                                                                                          |                            |
|         |                                                                                                              |                            |
| Item      10 | Directors, Executive Officers and Corporate      Governance                                                       |  34                        |
| Item      11 | Executive Compensation                                                                                            |        34                  |
| Item      12 | Security Ownership of Certain Beneficial Owners      and Management and Related Stockholder Matters               |        34                  |
| Item      13 | Certain Relationships and Related      Transactions and Director Independence                                     |        34                  |
| Item      14 | Principal Accountant Fees and      Services                                                                       |        34                  |
|         |                                                                                                              |                            |
|         | PART IV                                                                                                           |                            |
|         |                                                                                                              |                            |
| Item      15 | Exhibits and Financial Statement      Schedules                                                                   |        34                  |

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PART I

Item 1.   BUSINESS

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| Select Nonvolatile Memory and      Integrated Semiconductor Applications |
|--------------------------------------------------------------------------|
|                                                                     |   |   |
| Meters                                                                   | Computing      and Information Systems |
| Electric,      Gas, Waste                                                | RAID      systems |
| Taxi                                                                     | Printers      and copiers |
| Flow                                                                     | Printer      cartridges |
| Postage                                                                  | Servers |
| Automated      Meter Reading                                             | Network      attached storage |
|                                                                     | Storage      area networks |
|                                                                     |   |   |
| Automotive                                                               | Industrial,      Scientific and Medical |
| Restraint      systems                                                   | Medical      instruments |
| Smart      airbag systems                                                | Test      equipment |
| Auto      Body controls                                                  | Motor      controls |
| Car      radio/DVD/Navigation systems                                    | Home      automation |
| Instrumentation      clusters                                            | RFID      data logging |

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Item 1A.   RISK FACTORS

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| · | actual      or anticipated variations in our operating results;                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | the      low daily trading volume of our stock, which has in recent years traded at      prices below $5 per share;                                                        |
| · | announcements      of technological innovations or new products by us or our      competitors;                                                                             |
| · | competition,      including pricing pressures and the potential impact of competitors'      products on our sales;                                                         |
| · | conditions      or trends in the semiconductor memory productsindustry;                                                                                                    |
| · | unexpected      design or manufacturing difficulties;                                                                                                                      |
| · | any      announcement of potential design or manufacturing defects in our      products;                                                                                   |
| · | changes      in financial estimates or recommendations by stock market analysts      regarding us or our competitors;                                                      |
| · | announcements      by us or our competitors of acquisitions, strategic partnerships or joint      ventures; and additions or departures of our senior management;      and |
| · | one      shareholder owning 6% of our outstanding common stock, the sale of which      could affect the stock price.                                                       |

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Item 1B.  UNRESOLVED STAFFCOMMENTS

Item 2.   PROPERTIES

Item 3.   LEGALPROCEEDINGS

Item 4.   SUBMISSION OF MATTERS TO AVOTE OF SECURITY HOLDERS

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PART II

Item 5.   MARKET FOR REGISTRANT'S COMMON EQUITY,RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITYSECURITIES

| 2009                |   | High  |   | Low   |
|---------------------|--------|-------|--------|-------|
| First      Quarter  |   | $2.24 |   | $0.91 |
| Second      Quarter |   | $1.37 |   | $1.00 |
| Third      Quarter  |   | $2.53 |   | $1.08 |
| Fourth      Quarter |   | $2.55 |   | $1.63 |

| 2008                |   | High  |   | Low   |
|---------------------|--------|-------|--------|-------|
| First      Quarter  |   | $4.81 |   | $3.54 |
| Second      Quarter |   | $4.57 |   | $3.98 |
| Third      Quarter  |   | $4.29 |   | $2.75 |
| Fourth      Quarter |   | $2.60 |   | $1.42 |

Item 6.   SELECTED FINANCIALDATA

Item 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATION

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| • | Total      revenue in 2009 was $47.5 million, a decrease of 25% from $63.6 million in      2008.                                                                                                                                                                                                                                                                                                                                                    |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Total      product revenue in 2009 was $45.2 million, a decrease of 27% from $62.1      million in 2008.                                                                                                                                                                                                                                                                                                                                            |
| • | Integrated      product revenue in 2009 was $12.7 million, a decrease of 29% from $17.9      million in 2008.                                                                                                                                                                                                                                                                                                                                       |
| • | Product      gross margin in 2009 was 48%, compared to 52% in 2008.                                                                                                                                                                                                                                                                                                                                                                                 |
| • | On      September 4, 2009, we entered into a settlement agreement and mutual      release with one of our customers that resolved all matters related to the      previously announced in-field failures of one of our semiconductor memory      products.  As a result of the settlement and related insurance      reimbursement, we recorded a $132,000 credit against cost of sales during      the quarter ended September 30, 2009. |
| • | By      region, sales in 2009 were as follows: Asia Pacific (35% of sales),      Americas (28% of sales), Japan (15% of sales), and Europe (22% of      sales).  These sales are based on the location of the design      program that uses the Company's devices.                                                                                                                                                                        |
| • | The      $846,000 of other revenue on the income statement reflects a reimbursement      to Ramtron in the DRAM Antitrust Litigation. In December of 2009, the fund      paid to Defendants, of which Ramtron was part of the Class, for direct      purchases of DRAM from the Defendants in the litigation during the period      of April 1, 1999 through June 30, 2002.                                                                         |
| • | Due      to a change in economic conditions, the Company performed impairment tests      of its goodwill, intangible assets and long-lived assets associated with      our subsidiary in Canada.  Based upon that testing, the Company      incurred non-cash impairment charges of $5.4 million during the first      quarter of 2009.                                                                                                   |
| • | During      the first quarter of 2009, the Company implemented a restructure plan,      which entailed a 14% reduction in the Company's workforce and the closure      of our Montreal design center.  Restructuring charges for the      year were $844,000.                                                                                                                                                                             |

| • | Total      revenue between $60 and $65 million, representing growth of 25% to 37%      over 2009 respectively.                                                                                                                                             |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | GAAP      net income between 2% and 3% of total revenue.                                                                                                                                                                                                   |
| • | Gross      margin of 49%                                                                                                                                                                                                                                   |
| • | Total      operating expenses of 45% of total revenue. By expense line item, sales      and marketing to be 13% of total revenue, research and development to be      23% of total revenue, and general and administrative to be 9% of total      revenue. |
| • | Stock-based      compensation expense of approximately 2.4% of total revenue and non-cash      tax expense of approximately 1.5% of total  revenue.                                                                                                        |

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| • | Execute      our cost-reduction initiative, which is already driving increased market      share.                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Begin      selling the first production devices in our family of MaxArias wireless      memory products. We believe MaxArias devices are poised to revolutionize      the RFID industry by enabling previously unachievable applications with      their symmetric read and write performance over longer distances and with      less power. |
| • | Introduce      groundbreaking ultra low-power devices that will use a fraction of the      active energy used by products of our competitors.                                                                                                                                                                                                 |
| • | New      product initiatives intended to accelerate new product development and      enlarge the market opportunities that leverage our manufacturing process      know-how and product designexpertise.                                                                                                                                      |

| Revenue                                           |    |   |    |
|---------------------------------------------------|---------|--------|---------|
| (in      thousands, except average selling price) | 2009    |   | 2008    |
|                                              |    |   |    |
| Product      sales                                | $45,182 |   | $62,101 |
| %      change compared to prior period            | (27%)   |
| Units      shipped                                | 56,667  |   | 87,927  |
| %      change compared to prior period            | (35%)   |
| Average      selling price                        | $0.80   |   | $0.71   |
| %      change compared to prior period            | 13%     |
| Other      revenue                                | $2,335  |   | $1,453  |
| %      change compared to prior period            | 61%     |
| Total      revenue                                | $47,517 |   | $63,554 |
| %      change compared to prior period            | (25%)   |

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| Cost of Product Sales        |                   |   |                   |
|------------------------------|------------------------|--------|------------------------|
| (in      thousands)          | December      31, 2009 |   | December      31, 2008 |
|                         |                   |   |                   |
| Cost      of product sales   | $23,277                |   | $29,583                |
| Gross      margin percentage | 48%                    |   | 52%                    |

| Research and Development      Expense                                                              |                   |   |                   |
|----------------------------------------------------------------------------------------------------|------------------------|--------|------------------------|
| (in      thousands)                                                                                | December      31, 2009 |   | December      31, 2008 |
|                                                                                               |                   |   |                   |
| Research      and development expense (including customer-sponsored research and      development) | $11,320                |   | $11,959                |
| Percent      of total revenue                                                                      | 24%                    |   | 19%                    |

| Sales and Marketing Expense      |                   |   |                   |
|----------------------------------|------------------------|--------|------------------------|
| (in      thousands)              | December      31, 2009 |   | December      31, 2008 |
|                             |                   |   |                   |
| Sales      and marketing expense | $7,458                 |   | $8,804                 |
| Percent      of total revenue    | 16%                    |   | 14%                    |

| General and Administrative      Expense |                   |   |                   |
|-----------------------------------------|------------------------|--------|------------------------|
| (in      thousands)                     | December      31, 2009 |   | December      31, 2008 |
|                                    |                   |   |                   |
| General      and administrative expense | $5,518                 |   | $6,578                 |
| Percent      of total revenue           | 12%                    |   | 10%                    |

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| Restructuring andImpairment |                   |   |                   |
|-----------------------------|------------------------|--------|------------------------|
| (in      thousands)         | December      31, 2009 |   | December      31, 2008 |
|                        |                   |   |                   |
| Restructuring      expense  | $844                   |   | --                     |
| Impairment      charge      | $5,372                 |   | --                     |

| Other Non-Operating Income      (Expenses) |                   |   |                   |
|--------------------------------------------|------------------------|--------|------------------------|
| (in      thousands)                        | December      31, 2009 |   | December      31, 2008 |
|                                       |                   |   |                   |
| Interest      expense                      | $(384)                 |   | $(368)                 |
| Other      income (expense)                | $208                   |   | $(358)                 |
| Income      tax benefit (provision)        | $621                   |   | $(2,244)               |

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| (in      thousands)                                       |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                      |   |   |   |   |   |   |
| Cash      provided by (used for):                         |   |   |   |   |   |   |
| Operating      activities                                 |   | $      | 5,476  |   |   | $      | 4,188 |   |
| Investing      activities                                 |   |   | (7,019 | )      |   |   | (2,637 | ) |
| Financing      activities                                 |   |   | (717   | )      |   |   | 1,555 |   |
| Effect      of exchange rate changes on cash              |   |   | (99    | )      |   |   | (34 | ) |
| Net      (decrease) increase in cash and cash equivalents |   | $      | (2,359 | )      |   | $      | 3,072 |   |

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Item 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURESABOUT MARKET RISK

Item 8.   FINANCIAL STATEMENTS ANDSUPPLEMENTARY DATA

| Index      to Financial Statements                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            | Page |
|                                                                                                                            |   |
| Report of Independent Registered Public Accounting      Firm                                                                    |        F-1 |
| Consolidated Balance Sheets as of December 31, 2009      and 2008                                                               |        F-2 |
| Consolidated Statements of Operations and Comprehensive      Income (Loss) for the years ended December 31, 2009, and      2008 |        F-3 |
| Consolidated Statements of Stockholders'      Equity for the years ended December 31, 2009 and 2008                             |        F-4 |
| Consolidated Statements of Cash Flows for the years      ended December 31, 2009 and 2008                                       |        F-5 |
| Notes to Consolidated Financial    Statements                                                                                   |        F-6 |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

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CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                            |   | 2009   |     |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                                                                                                            |   |   |     |   |   |   |
| ASSETS                                                                                                                                                                                          |   |   |     |   |   |   |
| Current      assets:                                                                                                                                                                            |   |   |     |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                  |   | $      | 7,541    |   |   | $      | 9,900 |   |
| Accounts      receivable, less allowances of $1,069 and $811,    respectively                                                                                                                   |   |   | 7,979    |   |   |   | 11,274 |   |
| Inventories                                                                                                                                                                                     |   |   | 6,838    |   |   |   | 9,992 |   |
| Deferred      income taxes, net                                                                                                                                                                 |   |   | 294      |   |   |   | 266 |   |
| Other      current assets                                                                                                                                                                       |   |   | 1,360    |   |   |   | 1,110 |   |
| Total      current assets                                                                                                                                                                       |   |   | 24,012   |   |   |   | 32,542 |   |
|                                                                                                                                                                                            |   |   |     |   |   |   |   |   |
| Property,      plant and equipment, net                                                                                                                                                         |   |   | 15,341   |   |   |   | 5,635 |   |
| Goodwill,      net                                                                                                                                                                              |   |   | --       |   |   |   | 1,971 |   |
| Intangible      assets, net                                                                                                                                                                     |   |   | 2,800    |   |   |   | 6,470 |   |
| Deferred      income taxes, net                                                                                                                                                                 |   |   | 5,499    |   |   |   | 5,174 |   |
| Other      assets                                                                                                                                                                               |   |   | 263      |   |   |   | 212 |   |
| Total      assets                                                                                                                                                                               |   | $      | 47,915   |   |   | $      | 52,004 |   |
|                                                                                                                                                                                            |   |   |     |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                                       |   |   |     |   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                       |   |   |     |   |   |   |   |   |
| Accounts      payable                                                                                                                                                                           |   | $      | 5,275    |   |   | $      | 4,930 |   |
| Accrued      liabilities                                                                                                                                                                        |   |   | 1,759    |   |   |   | 3,131 |   |
| Deferred      revenue                                                                                                                                                                           |   |   | 645      |   |   |   | 645 |   |
| Current      portion of long-term debt                                                                                                                                                          |   |   | 1,341    |   |   |   | 382 |   |
| Total      current liabilities                                                                                                                                                                  |   |   | 9,020    |   |   |   | 9,088 |   |
| Deferred      revenue                                                                                                                                                                           |   |   | 564      |   |   |   | 1,209 |   |
| Long-term      debt, less current portion                                                                                                                                                       |   |   | 5,873    |   |   |   | 4,577 |   |
| Total      liabilities                                                                                                                                                                          |   |   | 15,457   |   |   |   | 14,874 |   |
|                                                                                                                                                                                            |   |   |     |   |   |   |   |   |
| Commitments      and contingencies (Notes 10 and 15)                                                                                                                                            |   |   |     |   |   |   |   |   |
|                                                                                                                                                                                            |   |   |     |   |   |   |   |   |
| Stockholders'      equity:                                                                                                                                                                      |   |   |     |   |   |   |   |   |
| Preferred      stock, $.01 par value, 10,000,000 shares authorized: 0 shares issued and      outstanding                                                                                        |   |   | --       |   |   |   | -- |   |
| Common      stock, $.01 par value, 50,000,000 shares authorized: 27,190,152 and      27,687,927 shares issued, respectively and 27,169,587 and 27,687,927      shares outstanding, respectively |   |   | 272      |   |   |   | 275 |   |
| Additional      paid-in capital                                                                                                                                                                 |   |   | 251,287  |   |   |   | 249,875 |   |
| Accumulated      other comprehensive loss                                                                                                                                                       |   |   | (304     | )      |   |   | (50 | ) |
| Accumulated      deficit                                                                                                                                                                        |   |   | (218,797 | )      |   |   | (212,970 | ) |
| Total      stockholders' equity                                                                                                                                                                 |   |   | 32,458   |   |   |   | 37,130 |   |
| Total      liabilities and stockholders' equity                                                                                                                                                 |   | $      | 47,915   |   |   | $      | 52,004 |   |

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(LOSS)

|                                                     |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revenue:                                                 |   |   |   |   |   |   |
| Product      sales                                       |   | $      | 45,182 |   |   | $      | 62,101 |   |
| License      and development fees                        |   |   | 717    |   |   |   | 717 |   |
| Royalties                                                |   |   | 672    |   |   |   | 646 |   |
| Customer-sponsored      research and development         |   |   | 100    |   |   |   | 90 |   |
| Other      revenue                                       |   |   | 846    |   |   |   | -- |   |
|                                                     |   |   | 47,517 |   |   |   | 63,554 |   |
| Costs      and expenses:                                 |   |   |   |   |   |   |   |   |
| Cost      of product sales                               |   |   | 23,409 |   |   |   | 28,768 |   |
| Provision      for loss contingency                      |   |   | (132   | )      |   |   | 815 |   |
| Research      and development                            |   |   | 11,207 |   |   |   | 11,912 |   |
| Customer-sponsored      research and development         |   |   | 113    |   |   |   | 47 |   |
| General      and administrative                          |   |   | 5,518  |   |   |   | 6,578 |   |
| Sales      and marketing                                 |   |   | 7,458  |   |   |   | 8,804 |   |
| Restructuring      charge                                |   |   | 844    |   |   |   | -- |   |
| Impairment      charge                                   |   |   | 5,372  |   |   |   | -- |   |
|                                                     |   |   | 53,789 |   |   |   | 56,924 |   |
| Operating      income (loss)                             |   |   | (6,272 | )      |   |   | 6,630 |   |
| Interest      expense                                    |   |   | (384   | )      |   |   | (368 | ) |
| Other      income (expense), net                         |   |   | 208    |   |   |   | (358 | ) |
| Income      (loss) before income tax (provision) benefit |   |   | (6,448 | )      |   |   | 5,904 |   |
| Income      tax (provision) benefit                      |   |   | 621    |   |   |   | (2,244 | ) |
| Net      income (loss)                                   |   | $      | (5,827 | )      |   | $      | 3,660 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Other      comprehensive loss, net of tax:               |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustments            |   |   | (254   | )      |   |   | (1,351 | ) |
| Comprehensive      income (loss)                         |   | $      | (6,081 | )      |   | $      | 2,309 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Net      income (loss) per common share:                 |   |   |   |   |   |   |   |   |
| Basic                                                    |   | $      | (0.22  | )      |   | $      | 0.14 |   |
| Diluted                                                  |   | $      | (0.22  | )      |   | $      | 0.13 |   |
| Weighted      average common shares outstanding:         |   |   |   |   |   |   |   |   |
| Basic                                                    |   |   | 26,845 |   |   |   | 26,353 |   |
| Diluted                                                  |   |   | 26,845 |   |   |   | 27,551 |   |

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS'EQUITY

|                                                                             |   | Common      Stock     |   |   |   |   |   |                            |   |   |                                        |   |   |                     |   |
|----------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------|--------|--------|---------------------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------|--------|
|                                                                             |   | ($.01      Par Value) |   |   |   |   |   |                            |   |   |                                        |   |   |                     |   |
|                                                                             |   | Shares                |   |   | Amount |   |   | Additional      Paid-in Capital |   |   | Accumulated      Other Comprehensive Income |   |   | Accumulated      Deficit |   |   | Stockholders'      Equity |   |
|                                                                             |   |                  |   |   |   |   |   |                            |   |   |                                        |   |   |                     |   |   |   |   |
| Balances,      December 31, 2007                                                 |   |                  | 26,125 |   |   | $      | 262    |                            |   | $      | 246,272                                     |   |   | $                        | 1,301  |   |   | $ | (216,630 | ) |   | $ | 31,205 |   |
| Exercise      of options                                                         |   |                  | 143    |   |   |   | 1      |                            |   |   | 306                                         |   |   |                     | --     |   |   |   | -- |   |   |   | 307 |   |
| Exercise      of warrants                                                        |   |                  | 1,153  |   |   |   | 10     |                            |   |   | 2,304                                       |   |   |                     | --     |   |   |   | -- |   |   |   | 2,314 |   |
| Repurchase      of common stock                                                  |   |                  | (15    | )      |   |   | --     |                            |   |   | (55                                         | )      |   |                     | --     |   |   |   | -- |   |   |   | (55 | ) |
| Common      stock issued from treasury                                           |   |                  | --     |   |   |   | --     |                            |   |   | 29                                          |   |   |                     | --     |   |   |   | -- |   |   |   | 29 |   |
| Stock-based      compensation expense                                            |   |                  | --     |   |   |   | --     |                            |   |   | 1,021                                       |   |   |                     | --     |   |   |   | -- |   |   |   | 1,021 |   |
| Issuance      of restricted stock                                                |   |                  | 282    |   |   |   | 2      |                            |   |   | (2                                          | )      |   |                     | --     |   |   |   | -- |   |   |   | -- |   |
| Cumulative      foreign currency translation adjustments                         |   |                  | --     |   |   |   | --     |                            |   |   | --                                          |   |   |                     | (1,351 | ) |   |   | -- |   |   |   | (1,351 | ) |
| Net      income                                                                  |   |                  | --     |   |   |   | --     |                            |   |   | --                                          |   |   |                     | --     |   |   |   | 3,660 |   |   |   | 3,660 |   |
| Balances,      December 31, 2008                                                 |   |                  | 27,688 |   |   |   | 275    |                            |   |   | 249,875                                     |   |   |                     | (50    | ) |   |   | (212,970 | ) |   |   | 37,130 |   |
| Exercise      of options                                                         |   |                  | 4      |   |   |   | --     |                            |   |   | 7                                           |   |   |                     | --     |   |   |   | -- |   |   |   | 7 |   |
| Repurchase      of common stock                                                  |   |                  | (20    | )      |   |   | --     |                            |   |   | (35                                         | )      |   |                     | --     |   |   |   | -- |   |   |   | (35 | ) |
| Stock-based      compensation expense                                            |   |                  | --     |   |   |   | --     |                            |   |   | 1,451                                       |   |   |                     | --     |   |   |   | -- |   |   |   | 1,451 |   |
| Cancellation      of restricted stock                                            |   |                  | (575   | )      |   |   | (5     | )                               |   |   | 5                                           |   |   |                     | --     |   |   |   | -- |   |   |   | -- |   |
| Shares      and cash issued for restricted stock and restricted stock      units |   |                  | 73     |   |   |   | 2      |                            |   |   | (16                                         | )      |   |                     | --     |   |   |   | -- |   |   |   | (14 | ) |
| Cumulative      foreign currency translation adjustments                         |   |                  | --     |   |   |   | --     |                            |   |   | --                                          |   |   |                     | (254   | ) |   |   | -- |   |   |   | (254 | ) |
| Net      loss                                                                    |   |                  | --     |   |   |   | --     |                            |   |   | --                                          |   |   |                     | --     |   |   |   | (5,827 | ) |   |   | (5,827 | ) |
| Balances,      December 31, 2009                                                 |   |                  | 27,170 |   |   | $      | 272    |                            |   | $      | 251,287                                     |   |   | $                        | (304   | ) |   | $ | (218,797 | ) |   | $ | 32,458 |   |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                    |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                    |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                              |   |   |   |   |   |   |
| Net      income (loss)                                                                                  |   | $      | (5,827 | )      |   | $      | 3,660 |   |
| Adjustments      used to reconcile net income (loss) to net cash provided by operating      activities: |   |   |   |   |   |   |   |   |
| Depreciation                                                                                            |   |   | 1,851  |   |   |   | 1,864 |   |
| Amortization                                                                                            |   |   | 294    |   |   |   | 598 |   |
| Gain      from asset disposition                                                                        |   |   | (69    | )      |   |   | -- |   |
| Provision      for bad debts                                                                            |   |   | 96     |   |   |   | 17 |   |
| Stock-based      compensation                                                                           |   |   | 1,451  |   |   |   | 1,021 |   |
| Deferred      income taxes                                                                              |   |   | (353   | )      |   |   | 2,146 |   |
| Impairment      charge                                                                                  |   |   | 5,372  |   |   |   | -- |   |
| Imputed      interest on note payable                                                                   |   |   | 54     |   |   |   | 65 |   |
| Provision      for inventory write-off, warranty charge, and scrap                                      |   |   | 536    |   |   |   | 442 |   |
| Loss      on abandonment of intangible assets                                                           |   |   | --     |   |   |   | 43 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Changes      in assets and liabilities:                                                                 |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                |   |   | 3,199  |   |   |   | (1,801 | ) |
| Inventories                                                                                             |   |   | 2,618  |   |   |   | (4,092 | ) |
| Accounts      payable and accrued liabilities                                                           |   |   | (2,800 | )      |   |   | 1,477 |   |
| Deferred      revenue                                                                                   |   |   | (645   | )      |   |   | (949 | ) |
| Other                                                                                                   |   |   | (301   | )      |   |   | (303 | ) |
| Net      cash provided by operating activities                                                          |   |   | 5,476  |   |   |   | 4,188 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                              |   |   |   |   |   |   |   |   |
| Purchase      of property, plant and equipment                                                          |   |   | (7,051 | )      |   |   | (2,608 | ) |
| Proceeds      from insurance and sale of assets                                                         |   |   | 87     |   |   |   | -- |   |
| Purchase      of intellectual property                                                                  |   |   | (55    | )      |   |   | (29 | ) |
| Net      cash used in investing activities                                                              |   |   | (7,019 | )      |   |   | (2,637 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                              |   |   |   |   |   |   |   |   |
| Net      purchase of treasury stock                                                                     |   |   | (48    | )      |   |   | (55 | ) |
| Principal      payments on debt                                                                         |   |   | (675   | )      |   |   | (1,040 | ) |
| Issuance      of common stock                                                                           |   |   | 6      |   |   |   | 2,650 |   |
| Net      cash (used) provided by financing activities                                                   |   |   | (717   | )      |   |   | 1,555 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Effect      of foreign currency                                                                         |   |   | (99    | )      |   |   | (34 | ) |
| Net      increase (decrease) in cash and cash equivalents                                               |   |   | (2,359 | )      |   |   | 3,072 |   |
| Cash      and cash equivalents, beginning of period                                                     |   |   | 9,900  |   |   |   | 6,828 |   |
| Cash      and cash equivalents, end of period                                                           |   | $      | 7,541  |   |   | $      | 9,900 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Supplemental      information:                                                                          |   |   |   |   |   |   |   |   |
| Property,      plant and equipment financed by capital leases                                           |   | $      | 2,876  |   |   | $      | -- |   |
| Amounts      included in capital expenditures but not yet paid                                          |   | $      | 2,163  |   |   | $      | 390 |   |

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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| (in      thousands)             |   | December      31, 2009 |   |   | December      31, 2008 |   |
|---------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                            |   |                   |   |   |                   |   |
| Restructuring      liability    |   | $                      | 242    |   |                   | $      | -- |   |
| Accrued      property taxes     |   |                   | 196    |   |                   |   | 176 |   |
| Compensation      related       |   |                   | 555    |   |                   |   | 1,853 |   |
| Product      liability warranty |   |                   | 144    |   |                   |   | 815 |   |
| Other                           |   |                   | 622    |   |                   |   | 287 |   |
| Total                           |   | $                      | 1,759  |   |                   | $      | 3,131 |   |

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| (in      thousands, except per share amounts)                                                                   |   | December      31, 2009 |   |   | December      31, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                                                                            |   |                   |   |   |                   |   |
| Net      income (loss) applicable to common shares                                                              |   | $                      | (5,827 | )      |                   | $      | 3,660 |   |
|                                                                                                            |   |                   |   |   |                   |   |   |   |
| Common      and common equivalent shares outstanding:                                                           |   |                   |   |   |                   |   |   |   |
|                                                                                                            |   |                   |   |   |                   |   |   |   |
| Historical      common shares outstanding at beginning of year (not including unreleased      restricted stock) |   |                   | 26,840 |   |                   |   | 25,469 |   |
| Weighted      average common equivalent shares issued during year                                               |   |                   | 5      |   |                   |   | 884 |   |
| Weighted      average common shares-basic                                                                       |   |                   | 26,845 |   |                   |   | 26,353 |   |
| Weighted      average common equivalent shares outstanding during year                                          |   |                   | --     |   |                   |   | 1,198 |   |
| Weighted      average common shares-diluted                                                                     |   |                   | 26,845 |   |                   |   | 27,551 |   |
|                                                                                                            |   |                   |   |   |                   |   |   |   |
| Net      income (loss) per basic share                                                                          |   | $                      | (0.22  | )      |                   | $      | 0.14 |   |
| Net      income (loss) per diluted share                                                                        |   | $                      | (0.22  | )      |                   | $      | 0.13 |   |

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| (in      thousands)   | December      31, 2009 |   | December      31, 2008 |
|-----------------------|------------------------|--------|------------------------|
|                  |                   |   |                   |
| Options               | 5,864                  |   | 3,077                  |
| Restricted      stock | 465                    |   | 575                    |

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| (in      thousands)                     |   | Year      Ended December 31, 2008 |   |
|-----------------------------------------|--------|-----------------------------------|--------|
|                                    |   |                              |   |
| General      and administrative expense |   | $                                 | (512   | ) |
| Sales      and marketing                |   |                              | (211   | ) |
| Research      and development           |   |                              | (169   | ) |
| Total                                   |   | $                                 | (892   | ) |

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| (in      thousands)                                                    |   | Termination      Benefits |   |   | Contract      Termination Costs |   |   | Other      Costs |   |   | Total  |   |
|------------------------------------------------------------------------|--------|---------------------------|--------|--------|---------------------------------|--------|--------|------------------|--------|--------|--------|--------|
|                                                                   |   |                      |   |   |                            |   |   |             |   |   |   |   |
| Balance      at December 31, 2008                                      |   | $                         | --     |   |                            | $      | --     |             |   | $      | --     |   |   | $ | -- |   |
| Provision/(Adjustments)      recorded for year ended December 31, 2009 |   |                      | 517    |   |                            |   | 215    |             |   |   | 112    |   |   |   | 844 |   |
| Cash      payments                                                     |   |                      | (462   | )      |                            |   | (28    | )                |   |   | (112   | )      |   |   | (602 | ) |
| Balance      at December 31, 2009                                      |   | $                         | 55     |   |                            | $      | 187    |             |   | $      | --     |   |   | $ | 242 |   |

| (in      thousands)  |   | December      31, 2009 |   |   | December      31, 2008 |   |
|----------------------|--------|------------------------|--------|--------|------------------------|--------|
|                 |   |                   |   |   |                   |   |
| Finished      goods  |   | $                      | 2,147  |   |                   | $      | 3,409 |   |
| Work      in process |   |                   | 4,691  |   |                   |   | 6,583 |   |
|                 |   | $                      | 6,838  |   |                   | $      | 9,992 |   |

| (in      thousands)                                                                                       |   | Estimated      Useful Lives (In Years) |   |   | December      31, |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|-------------------|--------|
|                                                                                                      |   |                                   |   |   | 2009              |   |   | 2008 |   |
|                                                                                                      |   |                                   |   |   |              |   |   |   |   |
| Land                                                                                                      |   |                                   | --     |   |              | $      | 668 |   |   | $ | 668 |   |
| Buildings      and improvements                                                                           |   | 18      and 7                          |   |   |              | 9,212  |   |   |   | 8,924 |   |
| Equipment                                                                                                 |   | 3      and 5                           |   |   |              | 14,397 |   |   |   | 14,003 |   |
| Office      furniture and equipment                                                                       |   | 5      and 7                           |   |   |              | 739    |   |   |   | 789 |   |
| Construction      in progress (1)                                                                         |   |                                   | --     |   |              |   | 10,807 |   |   |   | 610 |   |
|                                                                                                      |   |                                   |   |   |              |   | 35,823 |   |   |   | 24,994 |   |
| Less      accumulated depreciation                                                                        |   |                                   |   |   |              |   | (20,482 | ) |   |   | (19,359 | ) |
|                                                                                                      |   |                                   |   |   |              | $      | 15,341 |   |   | $ | 5,635 |   |
|                                                                                                      |   |
| (1) Property      under capital leases of $2.9 million is included in construction in      progress. |   |

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| (in      thousands)              |   | December      31, 2009 |   |   | December      31, 2008 |   |
|----------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                             |   |                   |   |   |                   |   |
| Goodwill                         |   |                   | --     |   |                   | $      | 5,914 |   |
| Accumulated      amortization    |   |                   | --     |   |                   |   | (3,943 | ) |
| Goodwill,      net               |   |                   | --     |   |                   | $      | 1,971 |   |
|                             |   |                   |   |   |                   |   |   |   |
| Patents      and core technology |   | $                      | 6,185  |   |                   | $      | 10,603 |   |
| Accumulated      amortization    |   |                   | (3,385 | )      |                   |   | (4,133 | ) |
| Intangible      assets, net      |   | $                      | 2,800  |   |                   | $      | 6,470 |   |

|                               |   | (in      thousands) |   |
|------------------------------------|--------|---------------------|--------|
|                               |   |                |   |
| Intangible      assets             |   | $                   | 3,317  |   |
| Property,      plant and equipment |   |                | 130    |   |
| Total                              |   | $                   | 3,447  |   |

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| (in      thousands)                                       |   |                                                                                 |   |   |                                                                       |   |   |                                                   |   |   |                                               |   |   |                                                           |   |
|-----------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
| Description                                               |   | Carrying      Value as of March 1, 2009 (date our impairment testing      performed) |   |   | Level      1: Quoted Prices in Active Markets for Identical    Assets |   |   | Level      2: Significant Other Observable Inputs |   |   | Level      3: Significant Unobservable Inputs |   |   | Total      Impairment Charges for Year Ended December 31, 20X2 |   |
|                                                      |   |                                                                                 |   |   |                                                                       |   |   |                                                   |   |   |                                               |   |   |                                                           |   |
| Intangible      assets                                    |   | $                                                                                    | 3,317  |   |                                                                       |   |   |                                                   |   |   |                                               |   | x      |                                                           |   | $ | 3,317 |   |
| Net      Property, Plant and Equipment                    |   |                                                                                 | 130    |   |                                                                       |   |   |                                                   |   | x      |                                               |   |   | x                                                              |   |   |   | 130 |   |
| Goodwill                                                  |   |                                                                                 | 1,925  |   |                                                                       |   | x      |                                                   |   |   | x                                                  |   |   |                                                           | x      |   |   |   | 1,925 |   |
| Total                                                     |   |                                                                                 |   |   |                                                                       |   |   |                                                   |   |   |                                               |   |   |                                                           |   |   |   | $ | 5,372 |   |
| ______________                                            |   |                                                                                 |   |   |                                                                       |   |   |                                                   |   |   |                                               |   |   |                                                           |   |   |   |   |   |   |
| x =      Inputs used in the Company's fair value analysis |   |                                                                                 |   |   |                                                                       |   |   |                                                   |   |   |                                               |   |   |

|                     | Percentage      of Company Total |
|--------------------------|----------------------------------|
|                     | 2009                             |   | 2008 |
|                     |                             |   |   |
| Sales                    | 11%                              |   | 15% |
| Accounts      receivable | 28%                              |   | 34% |
| Inventory                | 19%                              |   | 9% |

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| (in      thousands)                         |   | December      31, 2009 |   |   | December      31, 2008 |   |
|---------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                        |   |                   |   |   |                   |   |
| Long-term      debt:                        |   |                   |   |   |                   |   |
| Capitalized      lease                      |   | $                      | 2,582  |   |                   | $      | -- |   |
| National      Semiconductor promissory note |   |                   | 904    |   |                   |   | 1,100 |   |
| Mortgage      note                          |   |                   | 3,728  |   |                   |   | 3,859 |   |
|                                        |   |                   | 7,214  |   |                   |   | 4,959 |   |
|                                        |   |                   |   |   |                   |   |   |   |
| Long-term      debt current maturities      |   |                   | (1,341 | )      |                   |   | (382 | ) |
| Total                                       |   | $                      | 5,873  |   |                   | $      | 4,577 |   |

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| (in      thousands)                                          |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | Thereafter |   |   | Total  |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |
| Promissory      notes                                        |   | $      | 390    |   |   | $      | 325    |   |   | $      | 390    |   |   | $      | 414    |   |       | $      | 179    |   |   | $ | 2,934 |   |   | $ | 4,632 |   |
| Capital      leases                                          |   |   | 1,167  |   |   |   | 988    |   |   |   | 792    |   |   |   | --     |   |       |   | --     |   |   |   | -- |   |   |   | 2,947 |   |
| Less      amount representing interest on the capital leases |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   | (365 | ) |
| Total      debt                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   | $ | 7,214 |   |

|                                        |   | December      31, 2009 |   |   | December      31, 2008    |   |
|---------------------------------------------|--------|------------------------|--------|--------|---------------------------|--------|
| (in      thousands)                         |   | Carrying      Amount   |   |   | Estimated      Fair Value |   |   | Carrying      Amount |   |   | Estimated      Fair Value |   |
|                                        |   |                   |   |   |                      |   |   |   |   |   |   |   |
| Capital      leases                         |   | $                      | 2,582  |   |                      | $      | 2,582 |   |   | $ | -- |   |   | $ | -- |   |
| National      semiconductor promissory note |   |                   | 904    |   |                      |   | 879 |   |   |   | 1,100 |   |   |   | 1,094 |   |
| Mortgage      note                          |   |                   | 3,728  |   |                      |   | 3,571 |   |   |   | 3,859 |   |   |   | 3,921 |   |
|                                        |   | $                      | 7,214  |   |                      | $      | 7,032 |   |   | $ | 4,959 |   |   | $ | 5,015 |   |

|   |   | (in      thousands) |   |
|--------|--------|---------------------|--------|
|   |   |                |   |
| 2010   |   | $                   | 1,778  |   |
| 2011   |   |                | 1,631  |   |
| 2012   |   |                | 705    |   |
| 2013   |   |                | 17     |   |
| Total  |   | $                   | 4,131  |   |

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| Income      Statement Classifications  |   |                   |   |   |                   |   |
|----------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
| (in      thousands)                    |   | December      31, 2009 |   |   | December      31, 2008 |   |
|                                   |   |                   |   |   |                   |   |
| Income      Statement Classifications: |   |                   |   |   |                   |   |
| Cost      of product sales             |   | $                      | 73     |   |                   | $      | 161 |   |
| Research      and development          |   |                   | 308    |   |                   |   | 235 |   |
| Sales      and marketing               |   |                   | 213    |   |                   |   | 91 |   |
| General      and administrative        |   |                   | 857    |   |                   |   | 534 |   |
| Total                                  |   | $                      | 1,451  |   |                   | $      | 1,021 |   |

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|                          | December      31, 2009 |   | December      31, 2008 |
|-------------------------------|------------------------|--------|------------------------|
|                          |                   |   |                   |
| Risk      free interest rate  | 2.8%                   |   | 3.03%                  |
| Expected      dividend yield  | 0%                     |   | 0%                     |
| Expected      term (in years) | 6      yrs             |   | 6.25      yrs          |
| Expected      volatility      | 68%                    |   | 67%                    |

|                                  |   | Number      of Stock Options |   |   | Weighted      Average Exercise Price Per Share |   |
|---------------------------------------|--------|------------------------------|--------|--------|------------------------------------------------|--------|
|                                  |   | (in      thousands)          |   |   |                                           |   |
|                                  |   |                         |   |   |                                           |   |
| Outstanding      at December 31, 2008 |   |                         | 6,201  |   |                                           |   |   |
| Granted                               |   |                         | 142    |   |                                           | $      | 1.65 |   |
| Forfeited                             |   |                         | (48    | )      |                                           | $      | 3.21 |   |
| Exercised                             |   |                         | (4     | )      |                                           | $      | 1.88 |   |
| Expired                               |   |                         | (427   | )      |                                           | $      | 2.89 |   |
| Outstanding      at December 31, 2009 |   |                         | 5,864  |   |                                           |   |   |   |

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|                                    |   |                               |                | Weighted      Average           |                           |
|-----------------------------------------|--------|------------------------------------|---------------------|---------------------------------|--------------------------------|
| Exercise      Price Range               |   | Number      of Options Outstanding | Exercise      Price | Remaining      Contractual Life | Aggregate      Intrinsic Value |
|                                    |   |                               | (in      thousands) |                            |                           | (in      thousands) |
|                                    |   |                               |                |                            |                           |   |
| $1.02                                   | $2.22  |                               | 1,052               | $1.71                           | 6.47                           |   |
| $2.29                                   | $2.29  |                               | 1,274               | $2.29                           | 5.91                           |   |
| $2.32                                   | $3.71  |                               | 1,244               | $3.09                           | 4.68                           |   |
| $3.72                                   | $4.07  |                               | 1,694               | $3.88                           | 6.39                           |   |
| $4.15                                   | $17.81 |                               | 600                 | $6.31                           | 1.26                           |   |
| Ending      outstanding                 |   | 5,864                              | $3.23               | 5.41                            | $136                           |
| Ending      vested and expected to vest |   | 5,832                              | $3.23               | 5.39                            | $131                           |
| Ending      exercisable                 |   | 4,810                              | $3.31               | 4.79                            | $30                            |

| Exercise      Price Range | Number      of Options Exercisable | Weighted      Average Exercise Price |
|---------------------------|------------------------------------|--------------------------------------|
|                      |                               | (in      thousands)                  |   |
|                      |                               |                                 |   |
| $1.02                     | $2.22                              | 579                                  | $1.82 |
| $2.29                     | $2.29                              | 1,273                                | $2.29 |
| $2.32                     | $3.71                              | 1,184                                | $3.08 |
| $3.72                     | $4.07                              | 1,203                                | $3.85 |
| $4.15                     | $17.81                             | 571                                  | $6.41 |
|                      | 4,810                              | $3.31                                |

|                                  |   | Number      of Restricted Shares |   |   | Weighted      Average Grant Date Fair Value Per Share |   |
|---------------------------------------|--------|----------------------------------|--------|--------|-------------------------------------------------------|--------|
|                                  |   | (in      thousands)              |   |   |                                                  |   |
|                                  |   |                             |   |   |                                                  |   |
| Outstanding      at December 31, 2008 |   |                             | 848    |   |                                                  | $      | 2.36 |   |
| Granted                               |   |                             | 50     |   |                                                  | $      | 1.85 |   |
| Forfeited                             |   |                             | (575   | )      |                                                  | $      | 2.81 |   |
| Vested/Released                       |   |                             | (91    | )      |                                                  | $      | 1.42 |   |
| Outstanding      at December 31, 2009 |   |                             | 232    |   |                                                  | $      | 1.51 |   |

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| (in      thousands)                   |   | Number      of Restricted Units |   |   | Weighted      Average Remaining Contractual Term |   |   | Aggregate      Intrinsic Value |   |
|---------------------------------------|--------|---------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------|--------|
|                                  |   |                            |   |   |                                             |   |   |                           |   |
| Outstanding      at December 31, 2008 |   |                            | 118    |   |                                             |   |   |                           |   |   |
| Grants                                |   |                            | 166    |   |                                             |   |   |                           |   |   |
| Forfeited                             |   |                            | (17    | )      |                                             |   |   |                           |   |   |
| Vested/Released                       |   |                            | (34    | )      |                                             |   |   |                           |   |   |
| Outstanding      at December 31, 2009 |   |                            | 233    |   |                                             |   | 1.82   |                           |   | $ | 412 |   |
| Vested      and expected to vest      |   |                            | 220    |   |                                             |   | 1.81   |                           |   | $ | 389 |   |

|                                                  |   | Number      of Shares |   |   | Exercise      Price Per Share |   |
|-------------------------------------------------------|--------|-----------------------|--------|--------|-------------------------------|--------|
|                                                  |   | (in      thousands)   |   |   |                          |   |
|                                                  |   |                  |   |   |                          |   |
| Outstanding      and exercisable at December 31, 2008 |   |                  | 100    |   |                          | $      | 1.42 |   |
| Cancelled                                             |   |                  | (100   | )      |                          |   |   |   |
| Outstanding      balance at December 31, 2009         |   |                  | --     |   |                          |   |   |   |

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| (in      thousands)             | 2009   |   | 2008   |
|---------------------------------|--------|--------|--------|
|                            |   |   |   |
| Cash      paid for interest     | $372   |   | $368   |
| Cash      paid for income taxes | $70    |   | $230   |

| (in      thousands)                    |   | 2009   |   |   | 2008   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |
| United      States                     |   | $      | (1,952 | )      |   | $      | 5,642 |   |
| Foreign                                |   |   | (4,496 | )      |   |   | 262 |   |
| Income      (loss) before income taxes |   | $      | (6,448 | )      |   | $      | 5,904 |   |

| (in      thousands)               |   | 2009   |   |   | 2008   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
| Current:                          |   |   |   |   |   |   |
|                              |   |   |   |   |   |   |
| Federal                           |   | $      | (289   | )      |   | $      | 28 |   |
| State                             |   |   | (5     | )      |   |   | 24 |   |
| Foreign                           |   |   | 29     |   |   |   | 46 |   |
|                              |   |   | (265   | )      |   |   | 98 |   |
| Deferred:                         |   |   |   |   |   |   |   |   |
|                              |   |   |   |   |   |   |   |   |
| Federal                           |   |   | (336   | )      |   |   | 1,764 |   |
| State                             |   |   | (20    | )      |   |   | 382 |   |
| Foreign                           |   |   | --     |   |   |   | -- |   |
|                              |   |   | (356   | )      |   |   | 2,146 |   |
| Income      Tax expense (benefit) |   | $      | (621   | )      |   | $      | 2,244 |   |

| (in      thousands)                                                              |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                             |   |   |   |   |   |   |
| Computed      expected tax expense (benefit)                                     |   | $      | (2,257 | )      |   | $      | 2,060 |   |
| Increase      (reduction) in income taxes resulting from:                        |   |   |   |   |   |   |   |   |
| State      income taxes, net of federal impact                                   |   |   | (129   | )      |   |   | 118 |   |
| Non-deductible      differences                                                  |   |   | 45     |   |   |   | 51 |   |
| Foreign      operations                                                          |   |   | (7     | )      |   |   | (13 | ) |
| Refundable      credits                                                          |   |   | (78    | )      |   |   | (102 | ) |
| Non-deductable      impairment charges                                           |   |   | 2,016  |   |   |   | -- |   |
| Alternative      minimum tax                                                     |   |   | (211   | )      |   |   | 130 |   |
| Impact      of change in income tax rates on deferred taxes                      |   |   | --     |   |   |   | 1,756 |   |
| Impact      of change in income tax rates on  valuation      allowance |   |   | --     |   |   |   | (1,756 | ) |
| Income      tax expense (benefit)                                                |   | $      | (621   | )      |   | $      | 2,244 |   |

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| (in      thousands)                                                |   | 2009   |    |   | 2008   |   |
|--------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                               |   |   |    |   |   |   |
| Current:                                                           |   |   |    |   |   |   |
| Deferred      revenue                                              |   | $      | 239     |   |   | $      | 239 |   |
| Accrued      liabilities, not deducted until paid for tax purposes |   |   | 690     |   |   |   | 734 |   |
| U.S.      net operating loss carryovers                            |   |   | 512     |   |   |   | 895 |   |
|                                                               |   |   | 1,441   |   |   |   | 1,868 |   |
| Less      valuation allowance                                      |   |   | (1,147  | )      |   |   | (1,602 | ) |
|                                                               |   |   | 294     |   |   |   | 266 |   |
| Non-current:                                                       |   |   |    |   |   |   |   |   |
| U.S.      net operating loss carryovers                            |   |   | 22,394  |   |   |   | 30,344 |   |
| Foreign      net operating loss carryovers                         |   |   | 1,442   |   |   |   | 1,617 |   |
| Deferred      revenue                                              |   |   | 209     |   |   |   | 447 |   |
| Fixed      assets                                                  |   |   | 1,141   |   |   |   | 1,117 |   |
| Share-based      payments                                          |   |   | 1,618   |   |   |   | 1,140 |   |
| Alternative      minimum tax credit                                |   |   | 119     |   |   |   | 323 |   |
| Other                                                              |   |   | 59      |   |   |   | 113 |   |
|                                                               |   |   | 26,982  |   |   |   | 35,101 |   |
| Less      valuation allowance                                      |   |   | (21,483 | )      |   |   | (29,927 | ) |
|                                                               |   |   | 5,499   |   |   |   | 5,174 |   |
| Net      deferred tax assets                                       |   | $      | 5,793   |   |   | $      | 5,440 |   |

| Expiration      Date   |   | Regular      Tax Net Operating Losses |   |
|------------------------|--------|---------------------------------------|--------|
|                   |   |                                  |   |
| 2011                   |   | $                                     | 3,749  |   |
| 2012                   |   |                                  | 9,287  |   |
| 2013                   |   |                                  | 12,264 |   |
| 2014      through 2029 |   |                                  | 36,606 |   |
|                   |   | $                                     | 61,906 |   |

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| (in      thousands)                                           |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |
| Balance      at January 1, 2009                               |   | $      | 1,260  |   |   | $      | -- |   |
| Additions      based on tax positions related to current year |   |   | --     |   |   |   |   |   |
| Additions      for tax positions of prior years               |   |   | --     |   |   |   | 1,260 |   |
| Reductions      for tax positions of prior years              |   |   | (238   | )      |   |   |   |   |
| Settlements                                                   |   |   | --     |   |   |   |   |   |
| Balance      at December 31, 2008                             |   | $      | 1,022  |   |   | $      | 1,260 |   |

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Item 9.   CHANGES IN ANDDISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIALDISCLOSURE

Item9A.   CONTROLS AND PROCEDURES

Item 9B.   OTHERINFORMATION

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PART III

Item 10.   DIRECTORS, EXECUTIVEOFFICERS AND CORPORATE GOVERNANCE

Item 11.   EXECUTIVE COMPENSATION

Item 12.   SECURITY OWNERSHIP OF CERTAINBENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERMATTERS

Item13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTORINDEPENDENCE

Item 14.   PRINCIPAL ACCOUNTANT FEESAND SERVICES

PART IV

Item 15.   EXHIBITS AND FINANCIAL STATEMENTSCHEDULES

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| INDEX      TO EXHIBITS |
|------------------------|
| ExhibitNumber          |   |
| 3.1                    | Certificate      of Incorporation of Registrant, as amended.(4) |
| 3.2                    | Bylaws      of Registrant, as amended.(15) |
|                   |   |
| 4.2                    | Amended      and Restated Warrant to purchase 100,000 shares of common stock issued by      the Registrant to the National Electrical Fund dated August 6,      1999.(3) |
| 4.5                    | Form      of Rights Agreement, dated April 19, 2001, between Ramtron International      Corporation and Citibank, N.A.(6) |
|                   |   |
| 10.3                   | 1995      Stock Option Plan and forms of Incentive Stock Option Agreement and      Non-statutory Stock Option Agreement.(2) |
| 10.6                   | Amendment      No. 1 to Registrant's 1995 Stock Option Plan dated October 24,      1996.(1) |
| 10.7*                  | Second      Amendment to F-RAM Technology License Agreement between Fujitsu Limited      and the Registrant dated September 20, 1999.(4) |
| 10.8                   | Amendment      No. 2 to Registrant's 1995 Stock Option Plan dated December 22,      1999.(4) |
| 10.9                   | Registrant's      1999 Stock Option Plan.(4) |
| 10.17                  | Amendment      No. 3 to Registrant's 1995 Stock Option Plan, as amended, dated July 25,      2000.(5) |
| 10.18                  | Amendment      No. 1 to Registrant's 1999 Stock Option Plan, as amended, dated July 25,      2000.(5) |
| 10.19*                 | Technology      and Service Agreement between Infineon Technologies AG and the Registrant,      dated December 14, 2000.(5) |
| 10.21*                 | Joint      Development and License Agreement between the Registrant and Texas      Instruments, dated August 14, 2001.(7) |
| 10.22*                 | F-RAM      Technology License Agreement between the Registrant and NEC Corporation,      dated November 15, 2001.(8) |
| 10.31*                 | Settlement      Agreement between National Semiconductor Corporation and the Registrant      dated April 6, 2004. (9) |
| 10.32                  | Patent      Purchase Agreement between Purple Mountain Server LLC and the Registrant      dated April 13, 2004.(9) |
| 10.36                  | Promissory      note between Ramtron LLC and American National Insurance Company dated      December 8, 2005.(11) |
| 10.37                  | Deed      of Trust, Security Agreement and Financing Statement between Ramtron LLC      and American National Insurance Company dated December 8,      2005.(11) |
| 10.39                  | Loan      Modification Agreement between Ramtron International Corporation and      Silicon Valley Bank dated December 30, 2005.(12) |
| 10.48                  | Amended      and Restated Loan and Security Agreement between Ramtron International      Corporation and Silicon Valley Bank, dated September 15,      2005.(10) |
| 10.49                  | Intellectual      Property Security Agreement between Ramtron International Corporation and      Silicon Valley Bank, dated September 15, 2005.(10) |
| 10.50                  | Third      Amendment to Amended and Restated Loan and Security Agreement between      Ramtron International Corporation and Silicon Valley Bank, dated December      29, 2006.(13) |
| 10.51                  | Fourth      Amendment to Amended and Restated Loan and Security Agreement between      Ramtron International Corporation and Silicon Valley    Bank.(14) |
| 10.53*                 | Manufacturing      Agreement between the registrant and Texas Instruments dated March 6,      2007.(16) |
| 10.54                  | Amendment      No. 2 to Registrant's 1999 Stock Option Plan.  (17) |

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| 10.55  | Amended      and Restated 2005 Incentive Award Plan.(17)                                                                                                                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.56  | Form      of Amended and Restated Change in Control Agreement Between Registrant and      its executive officers dated December 23, 2008.(17)                                         |
| 10.57  | Fifth      Amendment to Amended and Restated Loan and Security Agreement between      Ramtron International Corporation and Silicon Valley Bank dated March 13,      2009.(18)        |
| 10.58* | Custom      Sales Agreement between Registrant and International Business Machines      Corporation dated February 9, 2009. (19)                                                      |
| 10.59  | Sixth      Amendment to Amended and Restated Loan and Security Agreement between      Ramtron International Corporation and Silicon Valley Bank dated June 24,      2009. (20)        |
| 10.60  | Amended      and Restated Loan and Security Agreement between the Registrant and      Silicon Valley Bank dated August 18, 2009.(21)                                                  |
| 10.61  | Amended      and Restated Intellectual Property Security Agreement between the      Registrant and Silicon Valley Bank dated August 18,    2009.(21)                                  |
| 10.62  | Loan      and Security Agreement (EX-IM Loan Facility) between the Registrant and      Silicon Valley Bank dated August 18, 2009.(21)                                                 |
| 10.63  | Export-Import      Bank of the United States Working Capital Guarantee Program Borrower      Agreement between the Registrant and Silicon Valley Bank dated August 18,      2009.(21) |
| 10.64* | Semiconductor      Services Attachment No. 4 to Custom Sales Agreement between Registrant and      International Business Machines Corporation dated December 31,      2009.          |
|   |                                                                                                                                                                                  |
| 21.1   | Subsidiaries      of Registrant.                                                                                                                                                      |
|   |                                                                                                                                                                                  |
| 23.1   | Consent      of Independent Registered Public Accounting Firm                                                                                                                         |
|   |                                                                                                                                                                                  |
| 31.1   | Certification      of Principal Executive Officer pursuant to 18 U.S.C. SECTION 1350, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                 |
| 31.2   | Certification      of Principal Financial Officer pursuant to 18 U.S.C. SECTION 1350, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                 |
|   |                                                                                                                                                                                  |
| 32.1   | Certification      of Principal Executive Officer pursuant to 18 U.S.C. SECTION 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                 |
| 32.2   | Certification      of Principal Financial Officer pursuant to 18 U.S.C. SECTION 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                 |

| (1) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 1996 filed with the Securities      and Exchange Commission on March 26, 1997.                                             |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Incorporated      by reference to our Form S-1 Registration Statement (Registration No.      33-99898) filed with the Securities and Exchange Commission on December 1,      1995.                                                                             |
| (3) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on August 31, 1999.                                                                                                        |
| (4) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 1999 filed with the Securities      and Exchange Commission on March 29, 2000.                                             |
| (5) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 2000 filed with the Securities      and Exchange Commission on March 30, 2001.                                             |
| (6) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on May 9, 2001.                                                                                                            |
| (7) | Incorporated      by reference to our Amendment No. 1 to Form 10-Q (Commission File No.      0-17739) for the quarter ended September 30, 2001 filed with the      Securities and Exchange Commission on November 13, 2001, as amended on      August 2, 2002. |
| (8) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 2001 filed with the Securities      and Exchange Commission on March 29, 2002, as amended on June 17,      2002.           |

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| (9)  | Incorporated      by reference to our Form 10-Q (Commission File No. 0-17739) for the      quarter ended June 30, 2004 filed with the Securities and Exchange      Commission on August 12, 2004.                     |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on September 21,  2005.                                                           |
| (11) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on December 21,2005.                                                              |
| (12) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on January 5, 2006.                                                               |
| (13) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 2006 filed with the Securities      and Exchange Commission on February 21, 2007. |
| (14) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on April 4, 2007.                                                                 |
| (15) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on May 1, 2007.                                                                   |
| (16) | Incorporated      by reference to our Form 10-Q (Commission File No. 0-17739) for the      quarter ended June 30, 2007 filed with the Securities and Exchange      Commission on May 8, 2007.                         |
| (17) | Incorporated      by reference to our Annual Report on Form 10-K (Commission File No.      0-17739) for the year ended December 31, 2008 filed with the Securities      and Exchange Commission on February 2, 2009.  |
| (18) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on March 17, 2009.                                                                |
| (19) | Incorporated      by reference to our Form 10-Q (Commission File No. 0-17739) for the      quarter ended March 31, 2009 filed with the Securities and Exchange      Commission on May 8, 2009.                        |
| (20) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on June 29, 2009.                                                                 |
| (21) | Incorporated      by reference to our Form 8-K (Commission File No. 0-17739) filed with the      Securities and Exchange Commission on August 24,  2009.                                                              |

| RAMTRON      INTERNATIONAL CORPORATION                                   |
|--------------------------------------------------------------------------|
|                                                                     |
| By:  /s/ William W. Staunton,  III                             |
| William      W. Staunton, III                                            |
| Director      and Chief Executive Officer (Principal Executive  Officer) |

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| Signature                         | Title                                                                    | Date      |
|-----------------------------------|--------------------------------------------------------------------------|-----------|
|                              |                                                                     |      |
| /s/      William G. Howard, Jr.   | Chairman      of the Board                                               | 2-18-2010 |
| William      G. Howard, Jr.       |                                                                     |      |
|                              |                                                                     |      |
| /s/      William L. George        | Director                                                                 | 2-18-2010 |
| William      L. George            |                                                                     |      |
|                              |                                                                     |      |
| /s/      Jack L. Saltich          | Director                                                                 | 2-18-2010 |
| Jack      L. Saltich              |                                                                     |      |
|                              |                                                                     |      |
| /s/      Theodore J. Coburn       | Director                                                                 | 2-18-2010 |
| Theodore      J. Coburn           |                                                                     |      |
|                              |                                                                     |      |
| /s/      Eric Kuo                 | Director                                                                 | 2-18-2010 |
| Eric      Kuo                     |                                                                     |      |
|                              |                                                                     |      |
| /s/      William W. Staunton, III | Director      and Chief Executive Officer (Principal Executive Officer)  | 2-18-2010 |
| William      W. Staunton, III     |                                                                     |      |
|                              |                                                                     |      |
| /s/      Eric A. Balzer           | Director      and Chief Financial Officer (Principal Accounting Officer) | 2-18-2010 |
| Eric      A. Balzer               |                                                                     |      |

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