SMART Modular Technologies Revises Earnings Guidance for Third Quarter Fiscal 2008

FREMONT, CA, May 20 (MARKET WIRE) --
SMART Modular Technologies (WWH), Inc. ("SMART" or the "Company") (NASDAQ:
SMOD),
a leading independent manufacturer of memory modules, solid state drives,
embedded computing subsystems, and TFT-LCD display products, today revised
its earnings guidance for the third quarter of fiscal 2008 that ends May 30th.

SMART anticipates that it will generate net sales of approximately $150 to
$155 million, compared to $160 million in the second quarter of fiscal 2008. It
expects to achieve gross profit of approximately $26 to $28 million, compared
to $32.4 million in the second quarter of fiscal 2008. GAAP net income is
expected to be approximately ($0.04) to ($0.02) per share for the third
quarter of fiscal 2008, compared to $0.17 per diluted share in the second
quarter
of fiscal 2008.

Non-GAAP net income is expected to be approximately $0.05 to $0.07 per
diluted share for the third quarter of fiscal 2008, compared to $0.17 per
diluted share in the second quarter of fiscal 2008, and excludes approximately
$0.09 per diluted share related to the in-process research and development ("IP
R&D") write-off associated with the acquisition of Adtron. The Company
believes this write-off is not indicative of its core operating performance
and consequently excluded the potential effect of the IP R&D write-off from
its previously announced third quarter fiscal 2008 guidance. Please refer to
the "Non-GAAP Information" below for further detail.

SMART expects to end the third quarter of fiscal 2008 with approximately
$100 to $105
million in cash and cash equivalents.

"While recent reports of improved DRAM pricing should bode well for a
return to growth in future quarters, SMART's business during the third quarter
of fiscal 2008 has been negatively impacted by three primary
factors:

1) the extended difficult pricing environment over the course of the
past several quarters and the resulting market share loss to certain
semiconductor companies that offer memory modules, in addition to
DRAM, and compete against SMART,
2) the slower than expected ramp of high density memory modules because
SMART encountered delays in qualifying various module configurations
at its customers that stemmed from a product introduction set-back
by one of its suppliers, and
3) a higher than expected overall effective tax rate, due to a business
shortfall in a certain region with a lower tax rate.

Despite these challenges, we see signs of a return to growth as DRAM
pricing has started to improve, new product initiatives gain customer traction,
and end demand remains steady," said Iain MacKenzie, CEO and president, SMART
Modular Technologies.

These anticipated financial results are preliminary and may be impacted by
results for the balance of the fiscal quarter and will be subject to the
Company's customary quarterly closing and review procedures. No
conferencecall will be held in conjunction with this revised guidance. SMART
will
report its full third quarter fiscal 2008 financial results and future outlook,
and hold its regularly scheduled conference call to discuss its results after
the close of market on Thursday, June 19, 2008 at 1:30 p.m. PDT.

Forward-Looking Statements

Statements contained in this press release, including the quotations
attributed to
Mr. MacKenzie, that are not statements of historical fact, including any
statements that use the words "will," "believes," "anticipates," "estimates,"
"expects," "intends" or similar words that describe the company's or its
management's future expectations, plans, objectives, or goals, are
"forward-looking statements" and are made pursuant to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include projections regarding the company's financial
performance, component pricing, new product introductions, and industry
demand for products.

Such forward-looking statements involve known and unknown risks,
uncertainties
and other factors that could cause the actual results of the company to be
materially different from the historical results and/or from any future
results or outcomes expressed or implied by such forward-looking statements.
Factors that
would cause or contribute to such differences include, but are not limited to,
the
post-closing integration of the businesses and product lines of SMART and
Adtron, production or manufacturing difficulties, competitive factors, new
products and technological changes, fluctuations in product prices and raw
materialcosts, dependence upon third-party vendors, customer demand, changes in
industry standards or release plans, overall effective tax rate, and other
risks detailed in the company's periodic report filings with the
Securitiesand Exchange Commission. Such risk factors as outlined in these
reports
maynot constitute all factors that could cause actual results to differ
materially
from those discussed in any forward-looking statement. The company operates
in a continually changing business environment and new factors emerge from
time to time. The company cannot predict such factors, nor can it assess the
impact, if any, from such factors on the company or its results.
Accordingly, forward-looking statements should not be relied upon as a
prediction of actual results. The company is not obligated to revise or
update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this press release.

Non-GAAP Information

Certain non-GAAP financial measures are included in this press release,
including
non-GAAP net income per diluted share. Non-GAAP financial results do not include
acquisition-related in-process research and development charges and other
infrequent
or unusual items. These non-GAAP financial measures are provided to enhance the
user's overall understanding of our financial performance. By excluding these
charges, our non-GAAP results provide information to management and investors
that is useful in assessing SMART's core operating performance and in evaluating
and comparing our results of operations on a consistent basis from period to
period. These non-GAAP financial measures are also used by management to
evaluatefinancial results and to plan and forecast future periods. The
presentationof this additional information is not meant to be a substitute for
the
corresponding financial measures prepared in accordance with generally accepted
accounting principles. Investors are encouraged to review the reconciliations
of GAAP to non-GAAP financial measures, which are included
below.

(Unaudited)
(In thousands)

Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
May 30, June 1, May 30, June 1,
2008 2007 2008 2007
--------- ---------- ---------- ----------
Net (loss) income $ (2,223) $ 14,183 $ 20,218 $ 42,706
Add:
One-time charge to In-process
R&D related to Adtron
acquisition, (no tax effect) 5,500 -- 5,500 --
--------- ---------- ---------- ----------
Non-GAAP net income $ 3,277 $ 14,183 $ 25,718 $ 42,706
========= ========== ========== ==========

Non-GAAP diluted net income per
ordinary share $ 0.05 $ 0.22 $ 0.40 $ 0.67
========= ========== ========== ==========
Shares used in computing
diluted net income per
ordinary share 64,000 63,894 63,900 63,725
========= ========== ========== ==========

About SMART

SMART is a leading independent designer, manufacturer and supplier of
electronic subsystems to original equipment manufacturers, or OEMs. SMART
offers more than 500 standard and custom products to OEMs engaged in the
computer, industrial, networking, gaming, telecommunications, and embedded
application markets. Taking innovations from the design stage through
manufacturing and delivery, SMART has developed a comprehensive memory product
line that includes DRAM, SRAM, and Flash memory in various form factors.
Through its subsidiary, Adtron Corporation, SMART offers high performance,
high capacity solid state drives for enterprise, defense/aerospace, industrial
automation, medical, and transportation markets. Its Embedded Products Division
develops embedded computing subsystems, backed by design and manufacturing, for
markets supporting test equipment, 3G infrastructure, and network processing
applications. SMART's Display Products Group designs, manufactures, and sells
thin film transistors (TFT) liquid crystal display (LCD) solutions to customers
developing casino gaming systems as well as embedded applications such as
kiosk, ATM, point-of-service, and industrial control systems. SMART's presence
in
the U.S., Europe, Asia, and Latin America enables it to provide its customers
with proven expertise in international logistics, asset management, and
supply-chain management worldwide. See www.smartm.com for more information.

For More Information
Investor Contacts:

Suzanne Craig
The Blueshirt Group for SMART Modular Technologies
415-217-7722
Email Contact

Iain MacKenzie
CEO, President & Director
SMART Modular Technologies
510-624-8132
Email Contact

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