Press Release

IC MICROSYSTEMS Corporation Berhad Signs Underwriting Agreement with Southern Investment Bank Berhad and SBB Securities Sdn Bhd

Kuala Lumpur, 18 April 2005

IC MICROSYSTEMS Corporation Berhad (ICmicCorp), which is primarily involved in the design of Integrated Circuits (ICs) through its wholly owned subsidiary IC MICROSYSTEMS Sdn Bhd, an MSC-status company, today signed an underwriting agreement with Southern Investment Bank Berhad (SIBB) and its sister company, SBB Securities Sdn Bhd (SBB Securities) in conjunction with its proposed listing on the MESDAQ Market of Bursa Malaysia Securities Berhad.

Southern Investment Bank Berhad is the adviser, sponsor, managing underwriter and placement agent for ICmicCorp's public offering. SBB Securities, a sister company of SIBB is an underwriter for the public offering.

At this morning's underwriting ceremony held in Kuala Lumpur, ICmicCorp was represented by its Executive Chairman/CEO En Abd Rashid Munir while SIBB was represented by its CEO Mr Goh Ching Yin and SBB Securities by its Dealing Director, Mr Lee Siang Seng. The event was witnessed by Mr Colin Helmer, the Economic Counsellor of the US Embassy in Kuala Lumpur.

Speaking at the event, En Abd Rashid Munir said that ICmicCorp will gain the distinction of becoming the first IC design company in Malaysia to list on the MESDAQ market.

“ICmicCorp's business model as a fabless IC design company is definitely unique for the Malaysian market. As a fabless IC design company, our core competency lies primarily in the field of IC design, device modelling, simulation and layout, which is the critical value-adding and core basis for intellectual property ownership. Wafer fabrication, packaging, assembly and testing of the physical IC products are outsourced to various contract houses who specialises in these areas globally. We are selective of the suppliers that we outsource to, such that only the industry best and reputed suppliers are qualified for such services”.

“In terms of utilisation of proceeds, a significant part of the cash raised from the listing exercise will be used for product development and marketing programmes. The Group will aggressively introduce several more new devices from the existing R&D,” added En Abd Rashid.

ICmicCorp is making a public issue of 64,000,000 ordinary shares of RM0.10 each at an issue price of RM0.30 per share. Of this, 46,000,000 ordinary shares will be offered via placement to selected investors; 15,000,000 ordinary shares will be offered to the public; and 3,000,000 ordinary shares will be offered for application by Directors and eligible employees of ICmicCorp and its subsidiaries.

ICmicCorp expects to raise approximately RM19.2 million from the listing exercise. The proceeds from the public issue will be partly utilised for research and product development, market development and expansion, and also retirement of bank borrowings.

Headquartered in Cyberjaya, ICmicCorp was incorporated in Malaysia on 24 March 2004 as an investment holding company to facilitate the listing of the Group on the MESDAQ Market.

Focusing on IC design and product development, the company specialises in Mixed Signal Data Converter ICs, Phone ICs, Radio Frequency ICs and EEPROM ICs to a global customer base. It is also the sole distributor of Silvaco EDA/CAD tools in Malaysia.

In January 2005, ICmicCorp acquired Intersil Corporation's Xicor Serial EEPROM product lines which will broaden and strengthen the company's existing product base and help the Group gain additional product technology. ICmicCorp also recently entered into a distributor agreement with Avnet Inc, one of the world's leading distributors of electronic components to customers worldwide.

Apart from the US, ICmic also plans to expand into South Korea, United Arab Emirates, Europe and China in the near future.

ICmicCorp expects to issue its prospectus by end April 2005 and is scheduled to be listed on the MESDAQ market before June 2005.

About IC Microsystems

IC MICROSYSTEMS Sdn. Bhd. (ICmic™) is a leading IC Design Company in Malaysia with office in Santa Clara, California. It is a Multimedia Super Corridor (MSC) status company and has a global customer base with proven performance in technology, revenue and profitability since its inception. Over the years, ICmic has become one of the main players in RF and mixed signal IC design in Malaysia.

The company has a comprehensive range of IC products comprising Mixed-Signal Data Converter ICs, Phone ICs, Radio Frequency ICs and Electrically Erasable Programmable Read-Only Memory (EEPROM) ICs.

The company owes its phenomenal success to its vision of investing in cutting edge technologies, hiring and training leading industry professionals to develop world class products at highly competitive prices.

ICmic has an authorised capital of RM10 million, with a paid-up capital of RM8.9 million. The Group is founded by En Abd Rashid Munir, where its initial investor is US-based electronic digital automation tool developer Silvaco International Inc.

Issued on behalf of IC Microsystems Corporation Berhad
For further information, contact:
MDK CONSULTANTS (Malaysia) SDN BHD
For enquiries, kindly contact : Elsy Tan / Toh Mei Ling
Tel : +60-3-2092 3579 / Fax : +60-3-2092 2560
Email : elsy.tan@mdkpr.com / meiling.toh@mdkpr.com

This press release is not an offer to sell the ordinary shares of ICmicCorp (the Shares). The offering of the Shares will be made only by means of a prospectus that will contain detailed information about ICmicCorp, including financial statements of ICmicCorp. Such prospectus is not presently available and will be obtainable from ICmicCorp and the financial institution mentioned above only when permitted by applicable laws in Malaysia.