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, November 22, 2006 - Semiconductor Manufacturing International Corporation, (“SMIC”, NYSE: SMI, HKSE: 0981.HK), one of the leading semiconductor foundries in the world, and Saifun Semiconductors Ltd. (“Saifun”, Nasdaq: 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.

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 deliverd 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® 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.