Vimicro International Launches Major SVAC Deployment and Receives Order for Large Video-Surveillance Solution

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Jul 25, 2013, 08:00 ET

BEIJING, July 25, 2013 /PRNewswire-FirstCall/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading image processing IC and surveillance solution provider, today announced that it has commenced the deployment of a technology solution based on SVAC (Surveillance Video and Audio Coding) and that its Zhongtianxin Science and Technology Co., Ltd. ("ZTX") joint venture has received a large order for SVAC-based video surveillance products and solutions, valued at approximately USD $20 million.

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ZTX has signed an agreement with the Public Security Bureau of a large Chinese city for the first phase of a major video-surveillance system, to be installed along highways, sidewalks, and at key public facilities. The project will be completed in three stages-analysis and work allocation, project implementation, and system test-which are expected to be completed during the next two months. The city government's plan calls for the implementation of a large-scale SVAC-based surveillance system over the next three years.

The project will feature SVAC technology, which is a core standard for video surveillance in China, co-developed by Vimicro and the Ministry of Public Security, along with contributions from more than 40 scientific research institutes, universities, and security-industry companies. For the past two years, Vimicro has installed many SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.

"We are pleased to have been selected as the primary technology and solution provider for this major video-surveillance system in a large Chinese city. This represents the first major citywide surveillance system employing our national SVAC technology standard," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "This key project is a major validation of the SVAC standard and also of Vimicro's technology and capabilities and marks the start of a wave of SVAC deployment."

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 PC/Notebook, consumer electronics and surveillance markets. Vimicro is aggressively expanding business into the surveillance market with system-level solutions and semiconductor products to capitalize on China's domestic demand. Vimicro's ADSs, each of which represents four ordinary shares, are currently trading on the NASDAQ Global Market under the ticker symbol "VIMC."

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the quotations from management in this announcement, as well as Vimicro's expectations and forecasts, contain forward-looking statements. Vimicro may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vimicro's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to develop and sell new mobile multimedia products; the expected growth of the mobile multimedia market; the Company's ability to increase sales of notebook camera multimedia processors; the Company's ability to retain existing customers and acquire new customers and respond to competitive market conditions; the Company's ability to respond in a timely manner to the evolving multimedia market and changing consumer preferences and industry standards and to stay abreast of technological changes; the Company's ability to secure sufficient foundry capacity in a timely manner; the company's ability to effectively protect its intellectual property and the risk that it may infringe on the intellectual property of others; and cyclicality of the semiconductor industry. Further information regarding these and other risks is included in Vimicro's annual report on Form 20-F filed with the Securities and Exchange Commission. Vimicro does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date hereof, and Vimicro undertakes no duty to update such information, except as required under applicable law.

Company Contact:

Vimicro International Corporation

Mr. David Tang, Chief Strategy Officer
Phone: +86 (10) 6894 8888 ext. 8811

E-mail: [email protected]

Ms. Serena Zhang, Investor Relations Assistant

Phone: +86 (10) 6894 8888 ext. 7552

E-mail: [email protected]

www.vimicro.com

Investor Contact:

CCG Investor Relations

Mr. John Harmon, CFA, Sr. Account Manager

Phone: +86 (10) 8573 1014 (Beijing)