BEIJING, Sept. 30, 2013 /PRNewswire/ -- Vimicro International Corporation (NASDAQ: VIMC) ("Vimicro" or the "Company"), a leading video-processing IC and surveillance solution provider, today announced that its subsidiary Vimicro Electronics Corporation ("ZXDZ") has received an order for a SVAC (Surveillance Video and Audio Coding)-based technology solution, valued at approximately USD $9 million.
ZXDZ placed a successful bid for a city-wide surveillance network project in Ziyang city in Sichuan province, which will be based on SVAC and deployed in cooperation with China Unicom. The network is being installed for the assurance of public security, and total spending on the project will be approximately $14.5 million, of which around $9 million will be contracted to ZXDZ. The system will be comprised of hundreds of video surveillance stations installed in the city, and the project is expected to be completed by the end of the calendar year. This project represents the first phase of a larger installation in Ziyang city and in the surrounding county.
The project will feature SVAC technology, which is a core standard for video surveillance in China, co-developed by Vimicro and the Ministry of Public Security along with contributions from more than 50 scientific research institutes, universities, and security-industry companies. During the past two years, Vimicro has installed several SVAC test sites across China and recently completed a successful field-trial of the SVAC standard.
"We are pleased to have been selected to provide this major video-surveillance system in Ziyang city in Sichuan province. This project represents the first safe-city project in Sichuan province to fully adopt the SVAC technology standard, and it also marks SVAC's geographic adoption beyond Shanxi province," commented Dr. John Deng, Vimicro's Chairman and Chief Executive Officer. "The project is another key validation of the national video surveillance standard and of Vimicro's technology and capabilities, as the SVAC test sites we have deployed throughout China are now turning into substantial orders."
About Vimicro International Corporation
Vimicro International Corporation is a leading video-processing IC and surveillance solution provider that designs, develops and markets mixed-signal semiconductor products and system-level solutions. Vimicro is aggressively expanding into the surveillance market with dedicated chips and networked system-level solutions. Its surveillance products include image processing chips and video terminal and monitoring platforms for use in public security, China's Safe City and Digital City initiatives, intelligent transportation systems, and production safety. Vimicro's ADSs, each representing four ordinary shares, currently trade on the NASDAQ Global Market under the ticker symbol "VIMC."
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the quotations from management in this announcement, as well as Vimicro's expectations and forecasts, contain forward-looking statements. Vimicro may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vimicro's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to develop and sell new mobile multimedia products; the expected growth of the mobile multimedia market; the Company's ability to increase sales of notebook camera multimedia processors; the Company's ability to retain existing customers and acquire new customers and respond to competitive market conditions; the Company's ability to respond in a timely manner to the evolving multimedia market and changing consumer preferences and industry standards and to stay abreast of technological changes; the Company's ability to secure sufficient foundry capacity in a timely manner; the company's ability to effectively protect its intellectual property and the risk that it may infringe on the intellectual property of others; and cyclicality of the semiconductor industry. Further information regarding these and other risks is included in Vimicro's annual report on Form 20-F filed with the Securities and Exchange Commission. Vimicro does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date hereof, and Vimicro undertakes no duty to update such information, except as required under applicable law.
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