VeriSilicon Completes Series B Financing

Shanghai, China - August 15, 2005 - VeriSilicon Holdings Co., Ltd. , a full service fabless ASIC design foundry, today announced that it raised US$ 13.5 million in its Series B financing, bringing the total amount of venture funding received to US$ 20 million since the company’s inception in 2001. New investors included Intel Capital, HSBC Private Equity (Asia) Limited, CID Group, Legend Capital, KTB/UCI, International Finance Corporation (IFC). Existing investors comprised WI Harper Group, IDG Technology Venture Investment, iGlobe Partners, and Harbinger Ventures. The company will use the funding to expand its R&D and its existing engineering and ASIC turnkey operations internationally. The Company currently has operation centers in Silicon Valley, U.S.; Shanghai, China; Taipei, Taiwan; and Tokyo, Japan.

“VeriSilicon’s mission is to increase efficiency and lower the cost of system-on-a-chip (SoC) ASIC design and manufacturing for worldwide customers through a flexible business model and innovative technologies. I am delighted that we have a group of international investors in the funding. The new round of funding will allow us to accelerate the development of our foundation technologies for 0.13 um and below and to expand our IP portfolio and SoC turn key service offerings worldwide,” said Dr. Wayne Dai, President and CEO of VeriSilicon.

“VeriSilicon is the first and only ARM certified design center (ATAP) in mainland China and the first and only LSI certified ZSP design center in mainland China. Recently, Red Herring rated VeriSilicon as one of the Top 10 Private Chip Companies to watch,” concluded Dr. Dai.

“Full service fabless design is an important part of the semiconductor ecosystem and an area of both technology and business model innovation,” said Duane Kuang, Director of the Intel Capital China Technology Fund. “Our investment in VeriSilicon is another example of Intel Capital’s commitment to support the growth of the domestic semiconductor industry in China.”

“VeriSilicon has achieved significant success over the past two years in establishing its market presence and technology expertise in China, and has built a strong platform to enable sustainable long term growth in its business,” said Raymond Y H Leung, Director of HSBC private equity. “We are delighted to have an opportunity to invest and work with one of the leading IC design companies based in China.”

“By working together with several major Asia System manufacturers, we understand there is a very promising market potential for Fabless semiconductor companies in China now and in the near future,” said Lisa Lo, Managing Director of CID Ventures Management and Consulting (BeiJing), Ltd. “We are glad to have this chance to work with VeriSilicon to facilitate this opportunity through the well-established infrastructure VeriSilicon has been built in the past several years.”

“We invested in VeriSilicon because we see the huge opportunity and rapid growth in the Chinese integrated circuit market” said Xiangyu Ouyang, Managing Director of Legend Capital. “We feel confident in the fast growth of VeriSilicon in the Chinese Semiconductor industry.”

About CID Group
Established in 1998, the CID Group is one of the fastest growing Asia-headquartered private equity firms. The CID Group focuses its investments in Taiwan, China, Korea, and United States because of its strong local knowledge and network. The CID Group has investments in over 75 companies across the region. Asia’s potential over the next 20 years is undeniable, but “potential” only means opportunities abound. Conducting business and closing deals over thousands of miles span requires that there is a tremendous amount of trust in the relationship. The CID Group works and operates in American, Korean, Japanese, Taiwanese, and Chinese business cultures and is able to meld disparate resources into profitable companies. The CID Group’s dedication to serving as a regional resource hub has made it a preferred partner for many management teams, portfolio companies and multi-national conglomerates. For more information, please visit www.cidvc.com .

About HSBC Private Equity (Asia) Limited
HSBC Private Equity (Asia) Limited (“HPEA”) was founded in 1988 and has over 10 years of private equity investment experience in Asia. Since its inception, funds advised by HPEA and its affiliates have invested in 97 companies in Asia, including 33 in China. To date, HPEA and its affiliates have advised investment funds with committed capital of approximately USD1.8 billion, including two venture funds totaling approximately USD137 million, specializing in investments in technology-related companies in Asia. HPEA is an indirect wholly owned subsidiary of HSBC Holdings plc. For more information, please visit www.hsbcnet.com/privateequity .

About IDG Technology Venture Investment
Founded in 1992 by International Data Group (IDG), a leading worldwide provider of information technology services, IDG Technology Venture Investment (IDGVC)'s operation is headquartered in Beijing, with branch offices in Shanghai, Guangzhou, and Shenzhen in China and in Boston and San Jose in the United States. As one of first American venture funds in China, IDGVC’s Investment activities focus on such industries as the Internet, information services, software, telecommunications, networking technology, biotechnology and life science. IDGVC, Supported by IDG’s global resources, manages more than three funds and has invested more than US$200million in more than one hundred portfolio companies. IDGVC's experiences and strengths in China's entrepreneurial community allow it to offer more important value-added services in addition to venture capital alone. For more information, please visit www.idgvc.com .

About International Finance Corporation
International Finance Corporation (IFC) is the private sector investment arm of the World Bank Group and the largest multilateral source of loan and equity financing for private sector projects in the developing world. IFC's mandate is to finance private sector investments in the developing world, mobilize capital in the international financial markets, help clients improve social and environmental sustainability, and provide technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications. For more information, please visit www.ifc.org .

About iGlobe Partners
iGlobe Partners is an independent transpacific venture capital firm with presence in Silicon Valley, Singapore & Shanghai. The team at iGlobe comprises seasoned investment professionals with strong track records and rich cross border operational experience. We seek investments in globally scaleable businesses anchored upon differentiated technology which are led by passionate management. iGlobe adopts a hands-on approach building superior global market value for our portfolio companies, delivering superior returns to our investors. For more information, please visit www.iglobepartners.com .

About Intel Capital
Intel Capital, Intel’s venture investment program, focuses on making minority equity investments to grow the Internet economy in support of Intel’s strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital has invested more than US$4 billion in approximately 1,000 companies in more than 30 countries since 1991. Since its inception, about 160 portfolio companies have been acquired by other companies and another 150 have gone public on various exchanges around the world. Intel Capital employs investment managers in about 25 countries worldwide. Last year alone, Intel Capital invested more than US$130 million with approximately 40 percent of its investments made outside the United States. For more information, visit www.intel.com/capital .

About Harbinger Ventures
Harbinger's mission is to be a value-added venture investor in the core technologies that will enhance the productivity and experience at the workplace or at home. Leveraging the MiTAC-SYNNEX Group's strong financial backing and web of networks, Harbinger strive to create synergy and forge strategic relationships among their investee companies and the Group's affiliated companies at every opportunity. Welcoming challenge, Harbinger will continue to be a forerunner in the technologies that will change the communications and computing networks of tomorrow while generating tangible results and real value for both its investees and investors. For more information, please visit www.harbingervc.com .

About the Intel Capital China Technology Fund
The Intel Capital China Technology Fund is a US$200 million investment program to help stimulate local technological innovation and the continued growth of China's IT industry. It will be used to help accelerate technology adoption locally and foster development of innovative technologies with potential for global distribution. Investments will be made in Chinese technology companies developing innovative hardware, software and services.

About KTB
KTBnetwork is a investment company led by highly experienced professionals across all business areas, and it a leader in value-added investment for the incubation and development of promising, forward-looking companies. Since its establishment in 1981, it has invested more than 1 billion dollars in about 1,000 companies in almost every form of private equity, including in startups, corporate restructuring, and buyouts. As Korea’s largest and most prominent, KTBnetwork is now bracing itself to become and internationally recognized premier investment group. For more information, please visit www.ktb.co.kr .

About Legend Capital
Founded in April 2001, Legend Capital is an independent venture capital subsidiary of Legend Holdings Ltd. focused on driving high-growth IT investments in China and China-related companies at the start-up and expansion stages. It has over US$100 million and more than 30 investments across two funds under management. Successful investments include Joyo.com (acquired by Amazon.com) and SinoCom Software Group Ltd. (HKEX: 299). Legend Capital invests in companies in Internet-related products/services, wireless SP, outsourcing, digital media, IC design/key components, as well as select non-IT industries. Legend Capital provides its portfolio companies extensive business resources to assist with business development, company image building, and other critical company building activities in the China market. For more information, please visit www.legendcapital.com.cn.

About UCI
Unite Capital Investment (UCI) is a professional fund management company. With a strong belief that 'Invest in China, Invest in Future', UCI create incubators in China and leverage international resources of capital, management, talents and technology to make every success with entrepreneurs. For more information, please visit www.ucigroup.cn .

About WI Harper Group
Founded in 1996, WI Harper Group was one of the first Trans-Pacific high technology venture capital firms focused exclusively on creating a bridge between Silicon Valley and the Greater China Region (China, Taiwan, and Singapore). With this first mover advantage, WI Harper is the leading venture capital firm in Greater China with a portfolio of more than 100 high technology companies. Headquartered in San Francisco, WI Harper also has operations in Beijing, Taipei and Singapore. For more information, please visit www.wiharper.com .

About VeriSilicon
VeriSilicon Holdings Co., Ltd., a fabless ASIC design foundry focusing on providing semiconductor IP, design services and turnkey service including manufacturing, packaging, testing, and delivery. VeriSilicon has operation centers in Shanghai, China; Taipei, Taiwan; Silicon Valley, US and Tokyo, Japan to service worldwide customers. Over 400 customers worldwide have licensed VeriSilicon’s IPs and Standard Design Platforms (SDPs), including standard cell libraries, IO cell libraries, memory compilers, optimized specifically for wafer foundries such as, Semiconductor Manufacturing International (Shanghai) Corporation (SMIC), Grace Semiconductor Manufacturing Corporation (GSMC), Advanced Semiconductor Manufacturing Corporation of Shanghai (ASMC) and Shanghai Hua Hong NEC Electronics Co., Ltd (HHNEC), and HeJian Technology (Suzhou) Co., Ltd. (HJTC), covering 90nm, 0.13ìm, 0.15ìm, 0.18ìm, 0.25ìm, 0.35ìm, and 0.6ìm process technologies. VeriSilicon has achieved the first silicon success and started volume production of many complex, multi-million gates ASICs using 0.18 um and below technologies at China based wafer foundries. VeriSilicon is the first and only ARM certified design center (ATAP) and the the first and only LSI certified ZSP design center in mainland China. For more information, please visit http://www.verisilicon.com.