Dr. Ulrich Schumacher, new President and CEO of Grace Semiconductor

Shanghai, China, September 20, 2007 - The Board of Grace Semiconductor Manufacturing Corporation has named Dr. Ulrich Schumacher as the new President and CEO of the Company, effective September 15th, 2007.  Dr. Schumacher will also be a Director of the Board of the Company.

Mr. Dong Yeshun, Chairman of Grace Semiconductor, said: “We are delighted and honoured that Dr. Ulrich Schumacher has decided to take on this role as President and CEO of Grace Semiconductor.  Dr. Schumacher enjoys an unrivalled reputation worldwide as one of the best minds and leaders in the semiconductor industry.  With someone of Dr. Schumacher’s calibre and international stature heading our management team, we are confident that we can further accelerate the process of bringing the Company to the next level.”

Dr. Schumacher was born in 1958 in Bergisch Gladbach, Germany.  He studied Electrical Engineering and Business Administration at the University of Aachen, Germany, and was awarded a Doctorate of Engineering.  In 1986, he joined the Semiconductor Group of Siemens AG in Munich, Germany, where he held several management positions in manufacturing, engineering and marketing.  In 1988, he became Assistant to the CEO and drove Strategic Planning and Alliances.  In 1991, he became General Manager of Memory, Chipcard IC and Multimedia Products.  In 1996, he was appointed President and CEO of Siemens Semiconductor Group, and in 1998, he became a member of the Board of Siemens AG.

In 1999, Dr. Schumacher led the spin-off of the Siemens Semiconductor Group and successfully brought it public in 2000 as Infineon Technologies.  Under his leadership, Infineon Technologies grew significantly, from being the 19th to the 4th biggest semiconductor company in the world, and for several years, it was the fastest growing company among the world’s top 20 semiconductor companies.  Dr. Schumacher resigned in 2004 and joined Francisco Partners, a private equity firm in San Francisco, USA, which specializes in high technology investments, as Operating Partner.

Dr. Ulrich Schumacher said: “I very much look forward to joining the Grace team as its President and CEO.  It is an opportunity I could not resist.  The potential of the foundry market remains enormous, and Grace is in an excellent position to become one of the leading PRC companies in this space.  I am glad to work in such a competitive environment, and in such a vibrant and dynamic country.”  Dr. Schumacher has resigned from Francisco Partners but will continue to support it as a special advisor.

Dr. Schumacher is assuming the role of President and CEO from Mr. Dong, who will remain as Chairman of the Board.  Mr. Dong first took over as President and CEO of Grace in 2004.  Previously the General Manager of Bosch Gasoline Systems China, Mr. Dong has overseen a critical transition of the Company over the last three years.  Under his leadership, the Company was able to weather an industry downturn, strengthen its technological, manufacturing and product capabilities, and attract new talent.  Mr. Dong is also a Vice President of Shanghai Alliance Investment, the leading shareholder of Grace.

“Mr. Dong has undertaken a remarkable transformation of the Company over the last few years,” Dr. Schumacher commented.  “He has built a solid foundation, in terms of technology, customers and human resources.  It will be my mission to build upon that foundation and to expedite Grace’s development into a major force in the global semiconductor industry.”

Grace Semiconductor is a specialized semiconductor foundry with a strong focus on high quality services and advanced technologies, including embedded nonvolatile memory, high voltage, and low leakage processes.  The Company started operations in 2003 and has been one of the fastest growing companies in the industry.  The Company is located in the Zhangjiang Hi-Tech Park in Pudong, Shanghai, and has more than 1,400 employees.  Shanghai Alliance Investment is a leading shareholder of Grace Semiconductor.  Other notable shareholders of the Company include Cheung Kong Holdings and Hutchison Whampoa of Hong Kong, as well as Silicon Storage Technology and Sanyo.  Two Asian private equity houses, GEMS and UCL Asia, are also investors in the Company.