VeriSilicon and Chips&Media Announce a Strategic Partnership to Provide Advanced Multimedia Solutions for Consumer Devices

SANTA CLARA, Calif. and SEOUL, South Korea -- Jan. 23, 2007 -- VeriSilicon Holdings Co., Ltd. (VeriSilicon), a leading world class ASIC design foundry and semiconductor IP provider, and Chips&Media, a leading video IP and solution provider, today announced the companies have entered into a strategic partnership to offer combined Audio & Video solutions based on each other's technology. The new products will incorporate best-in-class DSP solutions from VeriSilicon, for advanced audio processing and ultra-low power scalable video solutions from Chips&Media, as well as a complete system software framework.

Under the terms of the partnership, VeriSilicon will add Chips&Media video offering to its IP and ASIC platform portfolio, while Chips&Media will add ZSP(R) to its silicon offerings.

Chips&Media provides a rich assortment of video semiconductor IP targeted at a wide range of devices, from cellular handsets to portable media players to next generation DVD players. Chips&Media video bundles support a number of different video formats such as MPEG-2, MPEG-4, H.264, and VC-1 with resolutions up to HD.

VeriSilicon's ZSP technology is an optimum choice for a wide range of applications requiring high performance processing at minimum power consumption. The G1 and G2 processor families have been adopted by many market leaders and have contributed to market success of end devices spanning from cellular handsets to portable audio players, from IP Phones to digital still cameras, from DVDs to next generation HD Set-Top-Boxes.

"We are very happy to work with VeriSilicon to proliferate our technology to a wider range of customers," said Jesse Lim CEO of Chips&Media. "By integrating our industry leading video IP and VeriSilicon's popular ZSP architecture, we will be able to offer best-in-class multimedia capabilities to a number of new silicon products."

"Our partnership with Chips&Media reflects VeriSilicon's continuing effort to offer SoC customers targeted application platform solutions for a given market segment. Both companies not only bring leading technologies, in terms of performance and power, for consumer electronics but strong product roadmaps and system expertise to help IC manufactures get to market quickly with the highest competitive products," said Dr. Wayne Dai, chairman, president, and CEO of VeriSilicon

About ZSP(R)

ZSP is a family of licensable digital signal processing (DSP) cores and solutions from VeriSilicon. With more than 50 customers worldwide, the ZSP processor architecture enables customer innovation as the DSP of choice in many key vertical markets including 3G wireless handsets, multimedia and networked voice applications. The ZSP portfolio offers two generations of architectures, G1 and G2, with software compatible cores delivering performance points that meet the cost, power and efficiency constraints of today's SoC designs. A number of standard products are also available for VoIP applications. ZSP Solution Partners augment the technology with world-class software tools, EDA modeling support and a large portfolio of application software. ZSP customers include Broadcom, Marvell, IBM, Renesas, Yamaha, Huawei, Datang, Murata, AVID and many other world-class companies. More information is available at http://www.verisilicon.com .

About VeriSilicon

Founded in 2001, VeriSilicon Holdings Co., Ltd. ("VeriSilicon") is a fast growing silicon solutions company providing products and services that enable customers to meet their chip design objectives, accelerate development programs and deliver market proven silicon products -- on time and at lower cost. VeriSilicon specialises in providing expert design services, market leading licensable cores and platforms, industry standard semiconductor IP and scalable ASIC turnkey services across a broad range of application markets, including multimedia, voice and wireless communications. VeriSilicon has an extensive track record of accelerating customer ASIC designs from initial specification to silicon, achieving first silicon success -- on time and on spec -- and taking customer silicon through to volume production, utilizing its partner network of leading wafer foundries and packaging and test companies in Asia Pacific and China. With more than 150 highly skilled engineers and design centers worldwide, VeriSilicon's customers are able to leverage a truly global design services company to support their silicon projects and meet design and cost objectives. VeriSilicon has design, operation and sales and support offices in Santa Clara, California, Dallas, Texas, Shanghai and Beijing, China, Taipei, Taiwan, Tokyo, Japan, Nice, France and Seoul, Korea. In 2005, VeriSilicon was ranked No.3 in Deloitte Technology Fast 50 China and No.6 in Deloitte Technology Fast 500 Asia Pacific. VeriSilicon was named one of the Red Herring's 100 Private Companies of Asia and was also selected as one of EE Times 60 Emerging Startups. More information is available at http://www.verisilicon.com .

About Chips&Media

Chips&Media, Inc. is a leading multi-standard video codec solution provider, based in Seoul, Korea (Republic of). Chips&Media's video codec technologies cover the full line-up of video standards such as MPEG-2, MPEG-4, DivX, Xvid, H.264, VC-1 from CIF to HD resolution. The company has been providing its advanced ultra low power multi-codec video IP's to top-tier semiconductor companies based in U.S., Korea, Taiwan, China and Japan. More information is available at http://www.chipsnmedia.com .