Saifun Acquires 90nm Process Know-How from SMIC

Saifun expands its IP offering with NROM process technology

Shanghai, China and Netanya, Israel, July 2, 2007 - Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI and HKSE: 981), one of the leading semiconductor foundries in the world, and Saifun Semiconductors Ltd. (NASDAQ: SFUN), a provider of intellectual property solutions for the non-volatile memory (NVM) market, today announced that the two companies have signed an agreement whereby Saifun will acquire the IP and know-how of 90nm process technology. This IP purchase is the first part of a development cooperation which will continue to next generation advanced technologies.

Samples of the first SMIC Data (NAND) flash product based on the 90 nm process technology have already been shipped and the product is expected to reach the market later this year. The 2Gb product, based on Saifun NROM® technology, is the highest density of Data flash in the same technology node. The next product to follow will be of 8Gb density, based on Saifun Quad NROM four-bit-per-cell technology, and is scheduled to reach the market early in 2008.

Both companies are committed to continuing the investment in the productization of high-density Data flash and in developing broader applications utilizing the advantages of Quad NROM 4-bit-per-cell technology.

"We see great potential with NROM technology. The development of the first NAND product is just the beginning of the successful cooperation with Saifun. This agreement further cements our partnership to penetrate the NAND Flash market," commented Dr. Richard Chang, CEO of SMIC.

"This agreement marks an important milestone in our relationship with SMIC as they launch their first product to the very challenging Data, or NAND, market, based on our NROM technology." commented Dr. Boaz Eitan, Chairman and CEO of Saifun Semiconductors Ltd. "It is particularly important for Saifun as it will enable us to expand our IP portfolio of process technology for the benefit of our licensees.

"As we move forward, we look forward to working with SMIC on more advanced processes and applications," continued Eitan, "and are confident that the combination of Saifun NROM technology and SMIC technical expertise and manufacturing capabilities place both companies in an excellent position to offer the best cost performance products to the market."

About SMIC

Semiconductor Manufacturing International Corporation, (“SMIC”, NYSE: SMI, SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35nm to 90nm and finer line technologies. Headquartered in Shanghai, SMIC operates three 8-inch wafer fabrication facilities in its Shanghai mega-fab, an 8-inch wafer fab in Tianjin, and a 12-inch wafer fab in its Beijing mega-fab, the first of its kind in Mainland China. SMIC has customer service and marketing offices in the U.S., Italy, and Japan as well as a representative office in Hong Kong. For additional information, please visit www.smics.com

About Saifun Semiconductors Ltd

Saifun is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market. The company’s innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products. These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets. Among the companies currently licensing Saifun NROM technology are Macronix International, NEC Electronics, Semiconductor Manufacturing International Corporation, Sony Corporation, Spansion, and Tower Semiconductor.