(VIMC) Agreement on SVAC-Compliant Chips with the 1st Research Institute of Ministry of Public Security

BEIJING, April 21, 2014  — Vimicro International Corporation (NASDAQ: VIMC) (“Vimicro” or the “Company”), a leading video processing IC and surveillance solution provider, today announced that the Company signed an agreement regarding SVAC-compliant chips with the First Research Institute of the Ministry of Public Security. The signing ceremony was held on April 18 in Beijing and was attended by: Party Secretary Mr. Wang Gang, Director Mr. Qiu Baoli, Deputy Director Ms. Chen Zhaowu, etc. of the First Research Institute of Ministry of Public Security; Vimicro’s CEO, Dr. Zhonghan (John) Deng, and the President Mr. Zhaowei (Kevin) Jin.

The SVAC (Surveillance Video and Audio Coding) surveillance standard represents one of the most important achievements in the field of security and surveillance monitoring and it is the only codec specifically designed for security surveillance needs. SVAC was promulgated in 2011 as a national standard, and it was initiated and co-developed by the First Research Institute of the Ministry of Public Security and Vimicro, under the leadership of the Ministry of Public Security and the Ministry of Industry and Information Technology, with the goal of ensuring national safety and security. To-date, SVAC has been implemented in Shanxi and Hebei provinces and in other regions to provide public security, urban management, and in other large-scale industrial applications. Recently, the Ministry of Public Security selected Guangdong Province as the first province for a national SVAC standard demonstration running through October 2014, along with video collection points funded by Guangdong provincial government, which together will comprise a uniform implementation of the SVAC national standard.

With SVAC’s mature technology and increasing recognition, the total surveillance market is at approximately 300 billion Yuan (approximately USD $50 million) in 2012 and is estimated to be growing at an annual growth rate of approximately 20%. The close cooperation between Vimicro and First Research Institute of the Ministry of Public Security will continue to develop future SVAC national standards with the respect to core chips, safety programs, promotions, and other system features, which will benefit from both parties’ common resources, common strengths, and the promotion of development of future SVAC-compliant products, as well as system applications and industrial processes using video surveillance. Moreover, SVAC sets an example for the cooperation between government and industry on the development of national standards, the promotion of domestic high-tech industries, and the achievement of major successes.

About Vimicro International Corporation

Vimicro International Corporation is a leading video processing IC and surveillance 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 applications. Vimicro has aggressively entered the surveillance market with system-level solutions and semiconductor products to capitalize on China’s domestic demand. Vimicro’s ADSs each represent four ordinary shares and are traded on the NASDAQ Global Market exchange 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.

Investor Contact:
Vimicro International Corporation
Mr. John Harmon, CFA, VP of Finance
Phone: +86 186 1151 1730 (Beijing)
E-mail: john.harmon@vimicro.com