BEIJING, Aug. 25 /PRNewswire-Asia-FirstCall/ -- 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.

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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."

Key Terms:

China Mobile

China Mobile provides mobile voice, multimedia services and IP telephony through the nationwide mobile telecommunications network it operates in China that encompasses all 31 provinces, autonomous regions and directly- administered municipalities in Mainland China and Hong Kong.

CSMBC

CSMBC (China Satellite Mobile Broadcasting Corporation) is the wholly- owned subsidiary of the State Administration of Radio, Film and Television. The company is responsible for the investment, operation, system design, radio satellite-related technology development and radio broadcasting services for China's satellite mobile multimedia broadcasting projects.

TD-SCDMA

TD-SCDMA (Time Division Synchronous Code Division Multiple Access) is one of the global 3G standards developed by China. Datang Telecom Technology and Industry Group is best known for its leading role in developing the Chinese TD-SCDMA 3G mobile telecommunications standard through its subsidiary Datang Mobile SH, which is also the predecessor of Leadcore.

CMMB

CMMB (China Multimedia Mobile Broadcasting) is a Chinese mobile television and multimedia national standard that was the first Chinese-developed system serving a variety of mobile terminals, such as mobile phones, PDAs, MP3/MP4 players, digital cameras and notebooks.

About Leadcore Technology Co., Ltd

Leadcore Technology Co., Ltd. is one of the core members of Datang Telecom Technology and Industry Group. As a TD-SCDMA User Equipment technology provider, Leadcore has been dedicated to providing handset manufacturers and design houses with leading TD-SCDMA User Equipment solutions and chipsets. The solutions have been adopted by key handset developers. For more information about Leadcore, please visit http://www.leadcoretech.com .

About Vimicro International Corporation

Vimicro International Corporation is a leading multimedia semiconductor and solution provider that designs, develops and markets mixed-signal semiconductor products and system-level solutions that enable multimedia capabilities in a variety of products for the consumer electronics, communications markets. Vimicro is also expanding business into the surveillance market with system-level solutions and semiconductor products. Vimicro's ADSs, each of which represents four ordinary shares, are currently trading on the NASDAQ Global Market under the ticker symbol "VIMC."

    For further information about Vimicro, please contact:

    Public Relations Contacts:
     Sheena Shen/Haizhen Du
     Tel:   +86-10-6894-8888 x8788/8309
     Email: sheenashen@vimicro.com / duhaizhen@vimicro.com

    Investor Relations Contacts:
     Vanessa Wang
     Tel:   +86-10-6894-8888 x7294
     Email: wangjingyi@vimicro.com

     Shelton Group Investor Relations:
     Leanne K. Sievers
     Tel:   +1-949-224-3874
     Email: lsievers@sheltongroup.com

SOURCE Vimicro International Corporation