Shanghai Pudong Science and Technology Investment Co., Ltd. Responds to Recent Announcement by RDA Microelectronics, Inc. Regarding Pending Merger Transaction with Tsinghua Unigroup Ltd.

SHANGHAI, May 8, 2014 /PRNewswire/ -- Shanghai Pudong Science and Technology Investment Co., Ltd. ("PDSTI") responded today to press releases issued by RDA Microelectronics, Inc. ("RDA") on May 2, 2014 and May 5, 2014, with respect to the pending merger transaction between RDA and Tsinghua Unigroup Ltd. ("Tsinghua Unigroup").

The press release issued by RDA on May 2, 2014 with respect to the pending transaction with Tsinghua Unigroup refers to PDSTI. In a letter to the board of directors of RDA, PDSTI corrected factual errors and misleading information about the position of PDSTI, and confirmed that:

• PDSTI's offer to acquire RDA is in compliance with the Circular on Several Issues about Improving the Administration of Overseas Investment Projects [NDRC Foreign Investment 2009 NO. 1479] and the Measures for the Administration of Examination and Approval of Overseas Investment Projects [NDRC 2014 No. 9];
• PDSTI has obtained an extension of its NDRC pre-clearance approval for an acquisition of RDA through November 2014; and
• PDSTI has sufficient funding to acquire a company of comparable size to RDA.

PDSTI also noted that nearly six months have passed since RDA and Tsinghua Unigroup entered into their merger agreement, and expressed concern over the business and financial impact on RDA due to the uncertainties of completion of the pending transaction with Tsinghua Unigroup.

PDSTI also requested that RDA publicly disclose its financial performance for the first quarter of 2014.

PDSTI urged the board of directors of RDA to re-evaluate the pending transaction with Tsinghua Unigroup and consider alternatives at the earliest opportunity. PDSTI believes that three-way discussions among it, RDA and Tsinghua Unigroup as early as possible could be the only workable solution to protect the best interest of RDA and its shareholders.