Vivace Semiconductor Expands China Operations, Opens New Headquarters in Beijing

Vivace Semiconductor Expands China Operations, Opens New Headquarters in Beijing

May 14, 2007

Media Processing Chip Supplier Opens New Development,
Support Center to Address Dynamic Market Growth In China

    BEIJING, May 14 /Xinhua-PRNewswire/ -- Vivace
Semiconductor, a leader in digital media processing chips,
today announced it has expanded its Beijing operations into
a new facility as part of its overall plan to support the
dynamic market growth within the China consumer electronics
industry.  The new facility, which will serve as the
company's worldwide headquarters, is located in the IC
Design Park (Quantum Silver Plaza). It consists of more
than 1,000 square meters that can accommodate 100 staff.

    Vivace will house the core of its engineering team in
the new complex, with its focus being on implementing the
company's proprietary high-performance, low-power
architecture for advanced media processing applications.
They will be linked via high-speed secure networks to the
company's other facilities in Rochester, NY and Beverly, MA
(USA). In addition, Vivace's Beijing operations will include
a supply chain management team to work closely with the
semiconductor manufacturing infrastructure in China, and a
customer support function to assist system OEMs and ODMs in
leveraging the benefits of the company's product line. Local
sales, marketing and business development will also be based
in the Beijing facility.

    Vivace will offer an applications engineering
development lab and a customer reference demonstration
center to support the design implementation or
customization of applications using Vivace's family of
media processors.

    "Our strategy is largely based on the opportunity
in the Chinese consumer electronics industry and it is
critical that we have a strong on-the-ground presence
there. By committing to this expansion, we will be able to
more quickly integrate into the supply chain and provide
direct support to our customers," said Cary Ussery,
president and CEO of Vivace, who maintains a full-time
office in the new facility and residence in Beijing.
"As important, we believe the rapidly developing IC
design community in China will be a tremendous asset to us
as we bring our first products to market and we are looking
forward to expanding our development efforts in
Beijing."

    Vivace chose the same government-sponsored facility for
its expansion in the Beijing IC Design Park (one of 7
State-certified Integrated Circuit Technology Incubators). 
The IC Design Park is a property of Beijing Municipal
Government's investment arm, "Beijing State Property
Management Co." It provides tenants with technical
support infrastructure, including EDA environment support
from world-leading EDA companies such as Cadence, Synopsys,
Mentor Graphics and Magma, as well as support for
multi-project wafer (MPW) prototype services and IP
resources.

     "Having Vivace as a resident within one of
China's premier IC design parks is a testament to the
investment and commitment we have made to developing a
world class IC design industry in China," said Weiya
Hao, President of Beijing IC Design Park, Co., Ltd.
"We welcome the company and their unique model for
accelerating technology development. They have shown a
great willingness to participate at levels of our IC design
infrastructure and we wish them long-term success as a
pre-eminent supplier of market-leading technology, as well
as making an impact on the growth of Beijing's IC design
industry"

    About Vivace

    Vivace Semiconductor develops high-performance,
low-power video processing chips that are optimized for the
needs of high-growth consumer market segments. Its chips
support a full range of video and audio standards, are
based on the company's proprietary ViViD(TM) Media engine
and include a complete software suite for media processing
and a fully programmable, open platform for additional
software integration. Its initial product line is aimed at
developers of portable media players and integrated digital
display/TV products. The company is based in Beverly,
Massachusetts and Beijing, China. More information can be
found at http://www.vivacesemi.com .

    Vivace and ViViD are trademarks of Vivace
Semiconductor, Inc. All other trademarks referenced belong
to their respective owners.



    For more information, please contact:

     He Chuan
     Vivace Semiconductor
     Tel:   [phone]
     Email: [e-mail]

     Mike Sottak
     Wired Island, Ltd.
     Tel:   [phone]
     Email: [e-mail]