Vimicro Announces Strategic Cooperation With Inspur

Vimicro International Corporation

("Vimicro" or the "Company"), a leading video surveillance technology and solution provider, today announced that it has reached a Letter of Intent to form a strategic alliance with Inspur Group (Inspur) to cooperate and coordinate efforts in China's video surveillance market in the areas of solution and application development, maintenance and services, sales and marketing. The jointly developed total solutions consist of Vimicro's video surveillance technology and solutions and Inspur's servers and storage and its expertise in cloud computing. "We are pleased to have formed a strategic alliance with Inspur, which will enable our video surveillance total solutions to become domestic from both the hardware and software perspective and further expand our footprint in China's video surveillance market. As China's leading provider of proprietary server and storage solutions, Inspur will bring to the table its industry-renowned technology in data center and cloud computing and its existing client base," commented Dr. John Deng, Vimicro's Chairman and CEO. "As the only proven SVAC-compliant video surveillance technology and solution provider, Vimicro will continue to capitalize on the mega-trend of China's adoption of domestic technology and standards to establish itself as a leading player in China's robust video surveillance market."