Vimicro Announces Winning Of Competitive Bid In Wanbolin District In Taiyuan City Of Shanxi Province

Vimicro International Corporation

("Vimicro" or the "Company"), a leading video surveillance technology and solution provider in China, today announced that its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. ("Zhongtianxin"), has won a competitive bid for the provision of SVAC-compliant video surveillance cameras and systems to Wanbolin District in Taiyuan City of Shanxi Province, with an estimated contract size of RMB31 million, or USD5 million approximately. Zhongtianxin is joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. The bid is for the construction of "Public Security Video & Image Information Systems Project" in Wanbolin District in Taiyuan City of Shanxi Province. "We are pleased to have won the competitive bid in Wanbolin District in Taiyuan City to supply SVAC-compliant video surveillance products and systems. As the only proven SVAC technology and solution provider in the marketplace, Vimicro is working with Shanxi Provincial Government to roll out SVAC-compliant video surveillance systems across the province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The winning of this bid will serve as a model for the implementation of SVAC-compliant video surveillance systems in other districts in Taiyuan City. Vimicro will capitalize on the megatrend of the expedited adoption of domestic IT technology and national standard, leveraging on its leading position in SVAC national video surveillance standard, to create long-term shareholders' value."