Vimicro International Receives Order for Major SVAC Video-Surveillance Deployment in Sichuan Province

BEIJING, September 30, 2013 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video-processing IC and surveillance solution provider, today announced that its subsidiary Vimicro Electronics Corporation ("ZXDZ") has received an order for a SVAC (Surveillance Video and Audio Coding)-based technology solution, valued at approximately USD $9 million.

ZXDZ placed a successful bid for a city-wide surveillance network project in Ziyang city in Sichuan province, which will be based on SVAC and deployed in cooperation with China Unicom. The network is being installed for the assurance of public security, and total spending on the project will be approximately $14.5 million, of which around $9 million will be contracted to ZXDZ. The system will be comprised of hundreds of video surveillance stations installed in the city, and the project is expected to be completed by the end of the calendar year. This project represents the first phase of a larger installation in Ziyang city and in the surrounding county.

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 50 scientific research institutes, universities, and security-industry companies. During the past two years, Vimicro has installed several SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.

"We are pleased to have been selected to provide this major video-surveillance system in Ziyang city in Sichuan province. This project represents the first safe-city project in Sichuan province to fully adopt the SVAC technology standard, and it also marks SVAC's geographic adoption beyond Shanxi province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The project is another key validation of the national video surveillance standard and of Vimicro's technology and capabilities, as the SVAC test sites we have deployed throughout China are now turning into substantial orders."

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. Vimicro is aggressively expanding into the surveillance market with dedicated chips and networked system-level solutions. Its surveillance products include image processing chips and video terminal and monitoring platforms for use in public security, China's Safe City and Digital City initiatives, intelligent transportation systems, and production safety. Vimicro's ADSs, each representing four ordinary shares, currently trade on the NASDAQ Global Market under the ticker symbol "VIMC."

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