Vimicro Signs Agreement with Leadcore for TD-SCDMA 3G Market

BEIJING — Vimicro International Corporation (Nasdaq: VIMC) (“Vimicro”), a leading multimedia semiconductor and solution provider, today announced a strategic collaboration agreement with Leadcore Technology Co., Ltd. (“Leadcore”), a subsidiary of Datang Telecom technology Holding Co., Ltd (“Datang Holding”), which pioneered the TD-SCDMA technology and standard. Leadcore is the worldwide leading TD-SCDMA User Equipment solutions provider.

Recently, China Mobile and China Satellite Mobile Broadcasting Corporation (“CSMBC”) have jointly announced plans to launch TD-SCDMA-based 3G mobile communication services with CMMB mobile TV multimedia applications pre-installed. Vimicro and Leadcore have agreed to cooperate on developing 3G mobile phone technologies based on TD-SCDMA and multimedia standards for China Mobile. As part of the agreement, Vimicro will provide comprehensive mobile multimedia technologies and solutions, including mobile TV technology.

“China Mobile is the leading wireless telecom carrier with around 500 million users in China. We are pleased to announce this cooperation with Leadcore, the 3G technology leaders,” commented Dr. John Deng, Vimicro’s Chairman and Chief Executive Officer. “This joint effort will allow us to provide the most advanced technology and unified solutions for 3G handsets demanded by China Mobile, to further expand 3G adoptions.”

“We look forward to working with Vimicro, the leading multimedia semiconductor and solution provider for digital audio, video, mobile TV and other multimedia capabilities for wireless devices in the Chinese market,” stated Mr. Yuwang Sun, President of Leadcore. “Leadcore has been a dominant provider in TD-SCDMA and recently won more than half of the TD-SCDMA handset procurement from China Mobile. We believe that by working closely with Vimicro and leveraging their multimedia capabilities and expertise, we can provide standard multimedia handset components for China Mobile’s 3G deployment. We are confident that this alliance will strengthen our leadership position in the Chinese 3G wireless market.”