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

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.

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

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