On Oct. 19, 2006, Vimicro was invited to attend the 2006 Beijing International Microelectronics Symposium as the keynote speaker. The theme of this year's event was "Innovation, Cooperation and Crossing Over the Future." During his speech, Dr. John Deng, Chairman and CEO of Vimicro, emphasized the importance of innovation and the development of world class core technology.

Dr. Deng also announced that Samsung Electronics, one of the world's largest handset manufacturers, has adopted Vimicro's high quality audio processors in its latest handsets. The handsets, which were designed and manufactured to meet the increasing global consumer demand for multimedia features, are currently being marketed by leading wireless cellular service providers in North America.

"As one of the most recognizable brands in the world, Samsung designs handsets that are well known for their superior advanced multimedia features," Dr. Deng commented after the symposium, "Enhancement of multimedia capabilities is currently a key driver of the global handset market. Samsung's selection of Vimicro as its supplier validates the high quality of Vimicro's multimedia processors and our ability to compete in the global marketplace. Vimicro's flexible integrated processors enable the handset vendors to design and manufacture mobile phones with rich and varying levels of multimedia features for the segmented and rapidly evolving markets, with very short time to market. We hope to expand our cooperation with other leading handset manufacturers in the future."

As the first IC design company listed on NASDAQ, Vimicro attaches great importance to innovation and its development in the international market. The company's ability to bring innovative products to market has enabled Vimicro to attract top-tier customers for its PC camera and mobile media processors.In addition to Samsung, other leading Korean and Chinese handset manufacturers have adopted Vimicro's high-end audio processors.

Vimicro's high-quality audio processor delivers the ultimate music experience to mobile phone users by integrating a variety of multimedia features, including 64-polyphony wavetable based MIDI synthesizer and compressed audio decoder, into a single small form factor chip. The design of the audio processors is based on Vimicro's innovative proprietary reconfigurable architectures that work seamlessly with most handset baseband platforms such as those from TI, Freescale, Philips, Agere and Broadcom, and others, as well as across 2.5G/3G mobile networks based on GSM, GPRS, CDMA and different 3G standards. The high level of integration and mixed-signal capability of the audio processor also enables handsets to achieve significant efficiencies in terms of power, cost and size.

The objectives of the Beijing International Microelectronics Symposium are to promote information exchange, enhance cooperation in the industry and accelerate Chinese semiconductor development. Key topics discussed at this year's symposium included planning for Chinese IC development in the short and long-term and preparing Chinese IC companies to participate in the global market under WTO regulations. Government support for the IC industry was also discussed. This is the sixth consecutive year for the event.

About Vimicro
Vimicro International Corporation is a leading fabless semiconductor company in China that designs, develops and markets proprietary embedded multimedia signal processing chips and solutions that enable multimedia applications for mobile phones over 2.5G/3G networks and PCs over broadband Internet.
http://www.vimicro.com/english