Saifun and SMIC to Collaborate on 8Gb Data Flash Using SMIC's Advanced Process Technology

SMIC, a Leading Foundry to Manufacture 8Gb Flash on Advanced Process Based on

Saifun Quad NROM Technology and Designs

NETANYA, Israel, Nov. 23 /Xinhua-PRNewswire/ -- Semiconductor

Manufacturing International Corporation, (“SMIC”, NYSE: SMI, HKSE:

0981.HK), one of the leading semiconductor foundries in the world, and Saifun

Semiconductors Ltd. (“Saifun”, NYSE: SFUN), a leading provider of Non-

Volatile Memory (NVM) technology, jointly announced today that they will

collaborate on delivering 8Gb Data flash using SMIC’s advanced process

technology. This unique product, expected to reach the market in 2008, will

be based on the Saifun Quad NROM technology and designs.

(Logo: http://www.prnasia.com/sa/200611101605.jpg )

Saifun Quad NROM four-bit-per-cell technology represents a breakthrough

in existing NVM technology by doubling the storage capacity of conventional

memory cells and providing a simpler architecture that requires fewer

manufacturing steps and reduces manufacturing costs. The development of 8Gb

Data flash on SMIC’s advanced process demonstrates the advantages of Quad

NROM in enabling the most cost-effective Flash manufacturing processes on the

market today. It will enable SMIC to enter the challenging Flash market with

reliable and high performance products.

SMIC aims to provide a comprehensive flash product offering to tap into

the emerging consumer electronics market in China and throughout the world.

SMIC has delivered its first engineering samples of its advanced 2Gb NAND

flash product based on the Saifun NROM two-bit-per-cell technology, and it

continues to target mass production of this product by the end of 2006.

“We are delighted to further our relationship with SMIC in bringing the

advanced Flash products to the market,” commented Dr. Boaz Eitan, Chairman

and CEO of Saifun, “We believe that the combination of the innovation and

dedication of SMIC with Saifun’s unique NROM technology positions both

companies very well to become significant players in the very lucrative Data

market.”

"We are excited to further expand our partnership with Saifun into more

advanced flash technology. This again demonstrates our mutual commitment in

the advancement of Flash products," said Dr. Richard Chang, President and CEO

of SMIC, "We believe Saifun’s leading edge technology development, combined

with SMIC’s reliable and advanced manufacturing capabilities, will allow us

to further strengthen our position in flash market.”

About SMIC

SMIC (NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries

in the world and the largest and most advanced foundry in Mainland China,

providing integrated circuit (IC) manufacturing service at 0.35mm to 90nm and

finer line technologies. Headquartered in Shanghai, China, SMIC operates

three 200mm fabs in Shanghai and one in Tianjin, and one 300mm fab in

Beijing, the first of its kind in Mainland China. SMIC has customer service

and marketing offices in the U.S., Italy, and Japan as well as a

representative office in Hong Kong. For additional information, please visit

http://www.smics.com .

About Saifun Semiconductors Ltd.

Saifun is a provider of intellectual property (IP) solutions for the non-

volatile memory (NVM) market. The company’s innovative Saifun NROM(R)

technology allows semiconductor manufacturers to deliver high performance,

reliable products at a lower cost per megabit, with greater storage capacity,

using a single process for all NVM applications. Saifun licenses its IP to

semiconductor manufacturers who use this technology to develop and

manufacture a variety of stand-alone and embedded NVM products. These include

Flash memory for the telecommunications, consumer electronic, networking and

automotive markets. Among the companies currently licensing Saifun NROM

technology are Qimonda AG, Macronix International, NEC Electronics,

Semiconductor Manufacturing International Corporation, Sony Corporation,

Spansion, and Tower Semiconductor.

Safe Harbor Statements(Under the Private Securities Litigation Reform Act

of 1995)

This press release contains, in addition to historical

information, "forward-looking statements" within the meaning of the "safe

harbor" provisions of the U.S. Private Securities Litigation Reform Act of

1995. These forward-looking statements, including statements concerning the

timing specified products will be available to customers, the benefits of the

collaboration to customers and the continuing collaboration between SMIC and

Saifun, are based on SMIC's current assumptions, expectations and projections

about future events. SMIC uses words

like "believe," "anticipate," "intend," "estimate," "expect," "project" and

similar expressions to identify forward-looking statements, although not all

forward-looking statements contain these words. These forward-looking

statements involve significant risks, both known and unknown, uncertainties

and other factors that may cause SMIC's actual performance, financial

condition or results of operations to be materially different from those

suggested by the forward-looking statements.