Atmel Proprietary Cryptographic Algorithm

Making progress with my jet lag and awoke at 4 am this night...
Sorting through the papers that were in the RSA conference Alan Turing knapsack...
And found this piece from Atmel:

CryptoMemory
...A proprietary cryptographic algorithm encrypts data, passwords and checksums, providing a secure place for storage of sensitive information. With its tamper protection circuits, this information remains safe even under attack.
...


Two things about this:
1) "proprietary encryption"??? Hello!?
This leads most likely leads to desaster. Allways. Don't people learn?
2) If it is tamper resistant why don't say what FIPS 140-2 level or EAL certification it has?

This sheet is in the trash can now.

I don't understand this. Atmel has build cool things for a long time. Why are they doing this?! Was not AES designed to run on chips?