Vimicro Announces Strategic Development Agreement with CSMBC for CMMB Mobile TV

BEIJING — Vimicro International Corporation (Nasdaq: VIMC) (“Vimicro”), a leading multimedia semiconductor and solution provider, today announced a strategic development partnership with China Satellite Mobile Broadcasting Corporation (“CSMBC”) to advance the development of mobile TV under the China Mobile Multimedia Broadcasting (“CMMB”) standard. CSMBC is a wholly-owned subsidiary of The State Administration of Radio Film and Television (“SARFT”) and the national operator of CMMB.

Vimicro and CSMBC will collaborate on developing new technology and new business for the widespread utilization of the CMMB standard throughout China. As part of the agreement, Vimicro will develop highly reliable and highly integrated CMMB chip solutions, while CSMBC will provide support and assistance functions including CMMB handset testing and certification. Both companies will actively promote the CMMB standard and technology in the end user market.

CMMB is China’s proprietary standard for mobile TV broadcasting on small screen devices, such as 3G phones, PDAs, netbooks and smart phones. CMMB enables users to receive live TV programs and multimedia data on TD-SCDMA networks under a multi-year exclusive broadcast agreement, which is signed by CSMBC and China Mobile early this year.

“Vimicro has consistently been playing a key role in the development of multimedia technologies in China,” commented Dr. John Deng, Vimicro’s Chairman and Chief Executive Officer. “We are pleased to partner with CSMBC to accelerate multimedia user capabilities under China’s CMMB standard for mobile devices on the rapidly growing TD-SCDMA network. This agreement further enhances our position as a recognized leader of mobile multimedia technologies for the deployment of CMMB and TD-SCDMA networks.”