Vimicro Announces Winning Of Competitive Bid In Handan City Of Hebei Province, Contract Size Approximately $3.7M

Vimicro International Corporation VIMC ("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that it has won a competitive bid for the provision of SVAC-compliant video surveillance products to Handan Municipal Government in Hebei Province, with an estimated contract size of RMB 23 million, or USD $ 3.7 million approximately. "We are pleased to have won the bid in Handan of Hebei Province. Following the adoption of SVAC in Baoding City, Handan is the second city in Hebei to adopt SVAC national video surveillance technology standard. China is launching a nationwide, hierarchical and full-coverage video surveillance network -- 'Skynet', which will employ big data analysis and cloud computing to link towns, cities and provinces. SVAC national standard promulgated in 2011 is expected to be incorporated in the 'Skynet' project that is being rolled out on a nation-wide basis," commented Dr. John Deng, Vimicro's Chairman and CEO. "As one of the only two co-leading developers of SVAC national standard and the only SVAC-compliant video surveillance technology and solution provider, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China's video surveillance market."