The related handsets will be tested in several cities appointed by Chinese Ministry of Information Industry (MII). The demand for 3G applications is driving the future development of mobile communications. TD-SCDMA is a 3G standard for mobile wireless network operators developed by the Chinese Academy of Telecommunications Technology (CATT) in collaboration with Datang and Siemens. The standard is based on a combination of international 3G standards and independent Chinese intellectual property. By leveraging their strengths and competitive advantages in the mobile communications industry, Vimicro and Datang Mobile will cooperate to develop handsets that meet the stringent demands for 3G applications.

Since 2003, through its commitment to develop advanced mobile multimedia technologies, Vimicro has accumulated solid R&D and commercialization capabilities in the multimedia processors area. Through Mobile Multimedia Technology Alliance (MMTA), Vimicro has worked with leading companies to develop and promote TD-SCDMA standard in China. Supported by MII, MMTA was founded by 9 organizations including China Mobile Communications Corporation, China United Telecommunications Corporation, Huawei Technologies, ZTE Corporation and Vimicro Corporation etc. in 2004. MMTA focuses on establishing and promoting technical
specifications and standards related to mobile multimedia industry.

For its part, Datang Mobile has been committed to developing and promoting TD-SCDMA in China as well as in the international market. By working together, Vimicro and Datang Mobile are driving 3G technological innovation on core processors, handsets and networking equipments, elevating the overall competitiveness of the Chinese communications industry.

''Vimicro and Datang Mobile's strategic cooperation will encompass all phases of 3G mobile handset development for TD-SCDMA including research and development, design, mass production, testing, and so on,'' said Kevin Jin, president and COO of Vimicro, ''Datang Mobile has played a key role in the development of the TD-SCDMA standard. We are confident that by working
together with Datang Mobile, we will expand the broader 3G handset market.''

Sun Yuwang, vice president of Datang Mobile said: ''Together, Vimicro and Datang Mobile are in a strong position to develop advanced 3G phones, based on our independent intellectual property that will meet the increasing consumer demand for multimedia features. Under the terms of the partnership, Vimicro and Datang Mobile will collaborate to develop a full product series of mobile 3G handsets based upon the market demand.

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.

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