this is what i copied from the atmel datasheet. the chip has two timers in fact

Features
• Compatible with MCS-51 ™ Products
• 2K Bytes of Reprogrammable Flash Memory
– Endurance: 1,000 Write/Erase Cycles
• 2.7V to 6V Operating Range
• Fully Static Operation: 0 Hz to 24 MHz
• Two-level Program Memory Lock
• 128 x 8-bit Internal RAM
• 15 Programmable I/O Lines
• Two 16-bit Timer/Counters
• Six Interrupt Sources
• Programmable Serial UART Channel
• Direct LED Drive Outputs
• On-chip Analog Comparator
• Low-power Idle and Power-down Modes
8-bit
Microcontroller
with 2K Bytes


now i dont know if anyone out there has used it or not but today i will try t2 for a delay generation and see what happens
vinod