VeriSilicon Holdings Co., Ltd. Secures $20 Million in Financing

IC Design Foundry Accelerates Growth and Expands Worldwide Operations

SANTA CLARA, Calif. & SHANGHAI-- November 6, 2007 --VeriSilicon Holdings Co., Ltd., a System-on-A-Chip (SoC) platform based integrated circuit design foundry, today announced that it raised US$20 million in its Series D financing, bringing the total amount of venture funding received to US$58 million since the company's inception in 2001. This round was led by China Investment Fund (CIF), a business alliance between IBM and Lehman Brothers, and joined by VantagePoint Venture Partners and existing investors including Austin Ventures, Sierra Ventures, and CID. The company will use the funding to accelerate its research and development in SoC platforms using advanced semiconductor technology and expand its ASIC turnkey operations internationally. VeriSilicon currently has research and development centers in Santa Clara, California and Dallas, Taxes, U.S.; Shanghai and Beijing, China; with sales and customer support offices in Santa Clara, California, US; Shanghai, Beijing, Shenzhen, China; Taipei, Taiwan; Tokyo, Japan; Nice, France; and Seoul, Korea.

“VeriSilicon is growing rapidly, and we are delighted to have such a strong group of investors,” said Dr. Wayne Dai, Chairman, President, and CEO of VeriSilicon. “In the last three consecutive years, VeriSilicon has experienced approximately 100% year to year growth in revenue.”

“An innovative business model and innovative technology solutions have propelled VeriSilicon to the fore front of the emerging IC design foundry industry with a world wide customer base. The successful acquisition of ZSP division of LSI last year, together with the soft core license of ARM and PowerPC processors, facilitates our development of a variety of SoC platforms for consumer applications, such as multimedia, voice, and wireless communication. Application domain specific and star IP based SoC platforms are critical to making our business repeatable, scalable, and with high barrier of entry,” concluded by Dr. Dai.

About VeriSilicon Holdings Co., Ltd.

Founded in 2001, VeriSilicon Holdings Co., Ltd. ("VeriSilicon") is a fast growing IC (integrated circuit) design foundry providing custom solutions and SoC (System-on-A-Chip) turn key services. VeriSilicon has an extensive track record of accelerating customer designs from initial specification to silicon, achieving first silicon success - on time and on spec - and taking customer silicon through volume production, utilizing its partner network of leading wafer foundries and assembly and test companies in Asia Pacific. In addition to its flexible engagement model, superior supply chain management, and strong service culture, VeriSilicon’s market leading licensable digital signal processing (ZSP®) cores and star IP based SoC platforms, along with value-added mixed signal IP portfolio, are the key differentiators for its success in a broad range of application markets, including multimedia, voice and wireless communications. VeriSilicon's global customer base of market leading multinationals and fabless start-up companies benefit from shorter development cycles, reduced cost of ownership, and economies of scale. VeriSilicon currently has research and development centers in Santa Clara, California and Dallas, Texas, U.S.; Shanghai and Beijing, China; with sales and customer support offices in Santa Clara, California, U.S.; Shanghai, Beijing, Shenzhen, China; Tokyo, Japan; Taipei, Taiwan; Nice, France; and Seoul, Korea. For more information, please visit www.verisilicon.com.

About China Investment Fund

"China Investment Fund" is a business alliance between IBM and Lehman Brothers.

About IBM

For further information on IBM, please visit www.ibm.com.

About Lehman Brothers

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. For further information about Lehman Brothers’ services, products and recruitment opportunities, visit www.lehman.com.

About VantagePoint Venture Partners

VantagePoint Venture Partners provides creative growth strategies and capital to companies transforming global markets. With more than $4.0 billion of capital under management, the Firm invests in entrepreneurial companies at all stages of development in the CleanTech, Healthcare and Information Technology sectors. VantagePoint partners with talented entrepreneurs who are seeking to build companies that are world-scale in both size and substance. The Firm has created a network of thought leaders and strategic partners with some of the world's leading corporations to provide portfolio companies with a unique advantage to accelerate growth. For more information, please visit www.vpvp.com.

About Austin Ventures

Austin Ventures, with $3 billion dollars under management across nine funds, has been providing startup and growth capital to emerging companies for over twenty years. We partner with exceptionally talented entrepreneurs and operating executives to build valuable businesses in a variety of technology and service industries. We invest nationally but maintain a particular focus on Texas, where we are the region's most active investor. Our team of investment professionals works with companies at every stage of the funding lifecycle, from initial seed investments, through startup and growth capital, to management-led buyouts and recapitalizations. Austin Ventures brings a long-term investment perspective, broad experience in building high-growth companies, and access to an unparalleled network of entrepreneurs and executives. For more information, please visit www.austinventures.com.

About Sierra Ventures

Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments across all areas of the Information Technology sector from semiconductors to enterprise software. Sierra Ventures has managed nine venture capital partnerships and currently has more than $1.5 billion of capital under management. Some of the firm’s investments include 360Commerce (acquired by Oracle), Active Software (acquired by WebMethods), AmeriGroup (AGP), Centex (acquired by WorldCom), ConvergeNet (acquired by Dell), FatBrain (acquired by Barnes & Noble), Frontbridge (acquired by Microsoft), Healtheon (merged with WebMD), Interact Commerce (acquired by Sage), Intuit (INTU), Micromuse (acquired by IBM), OnAssignment (ASGN), OnLink (acquired by Siebel), Quinta (acquired by Seagate), StrataCom (acquired by Cisco), Sourcefire (FIRE), Sychip (acquired by Murata Manufacturing) and Teradata (acquired by NCR). For more information, please visit www.sierraventures.com.

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.