BEIJING – August 28, 2009 – Vimicro International Corporation (NASDAQ: VIMC), a leading multimedia semiconductor and solution provider, today announced that Vimicro Electronics Corporation, a joint venture company operated and managed by Vimicro, entered into a definitive agreement to acquire Video Surveillance System (“ViSS”) from Alcatel-Lucent Shanghai Bell Ltd. Co. (“ASB”). Vimicro Tianjin will acquire the complete ViSS business including all property, plant and equipment, inventories, business contracts, intellectual property and service and development capabilities in China. Moreover, Vimicro and ASB will continue the cooperation on solution and marketing developments in the future.
ViSS is a leading security and surveillance solution addressing the needs of telecom operators and local governments in China. As part of ASB, ViSS has been well established as the business platform for unified surveillance, storage and management solutions utilizing a broadband network infrastructure to connect independent monitoring sites across a broad geographical area. This platform can meet the monitoring needs of city roadways, airports, shopping centers, banks, schools, and other large facilities where surveillance is vital. ViSS also provides system management tools that enhance the visual and audio monitoring capabilities of multiple sites over telecommunication networks. It has been one of the most stable carrier-class video surveillance platforms available in the industry.
Vimicro Tianjin, jointly founded by Tianjin government and Vimicro, has a long-term strategic plan to further penetrate the surveillance market. As part of this acquisition, Vimicro Tianjin also gained the use of its brand name for a certain period as well as strong R&D team with deep industry experience.
The acquisition is expected to be closed in September of 2009 as agreed by both parties. The closing of the transaction is subject to customary closing conditions.