May 31, 2002 --- Leuven, Belgium --- IMEC, Belgium’s independent microelectronics R&D center, is currently talking with the Cayman Islands’ independent private company SMIC (Semiconductor Manufacturing International Corporation) based in Shanghai (China), to explore a long-term partnership for the development of advanced semiconductor process technology.

IMEC’s support would consist of consulting services and training towards SMIC’s own in-house development of advanced CMOS technology.

The contract discussions between both organizations began mid April, with the signature of a Letter of Intent. In order to prepare the next step, IMEC initiated the procedure of applying for an export license with the Belgian authorities, at the beginning of May.

“Contrary to recent allegations in the international press, IMEC has always respected international regulations, and will continue to do so,” said Prof. Gilbert Declerck, President and CEO of IMEC. SMIC has also given IMEC assurance of its respect for international regulations and continued obligations.

For these reasons, certain cooperation with SMIC on advanced semiconductor process technology subject to governmental approval will be conditional on the Belgian authorities’ grant of an export license,” said Prof. Gilbert Declerck.  “We are curious to see how the global issue of export restrictions to China will evolve, in view of the growing interest of equipment and materials suppliers worldwide to sell into the expanding Chinese semiconductor market.”

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Notes to editors

About IMEC

IMEC was founded in 1984 and today is Europe’s largest independent research center in the field of microelectronics, nanotechnology, enabling design methods and technologies for ICT systems. IMEC's activities concentrate on the design technology for integrated information and communication systems; silicon process technology; silicon technology and device integration; nanotechnology, microsystems, components and packaging; solar cells; and advanced training in microelectronics. IMEC is headquartered in Leuven, Belgium, and has a staff of more than 1200 people including over 350 industrial residents and guest researchers. IMEC has a 0.13µm 200mm pilot line and is ISO9001 certified. Its revenue of more than 120Meuro is derived from agreements and contracts with the Flemish government and companies, the EC, MEDEA+, the European Space Agency, equipment and material suppliers, and semiconductor and system-oriented companies worldwide. News from IMEC is located at www.imec.be.

For more information:

Katrien Marent

Corporate Communication Manager

IMEC, Kapeldreef 75

B- 3001 Leuven, Belgium

Tel +32 16 28 18 80 Fax +32 16 28 16 37

Email: Katrien.Marent@imec.be