SMIC Attains Validated End-User Status from U.S. Government

SMIC Attains Validated End-User Status from U.S. Government

October 19, 2007

    SHANGHAI, China, Oct. 19 /Xinhua-PRNewswire/ --
Semiconductor Manufacturing International Corporation
("SMIC"; NYSE: SMI; SEHK: 0981.HK), one of the
leading foundries in the world today, announced that the
U.S. export control agencies have named SMIC in their
initial list of trusted customers in the "Validated
End-User" program (VEU).  

    (Logo: http://www.xprn.com.cn/xprn/sa/200611101605.jpg
)

    Administered by the U.S. Commerce Department, VEU will
facilitate U.S. exports to China by removing licensing
requirements on approved dual-use equipment and materials
to approved facilities in China.  SMIC is one of only five
companies in the world to receive VEU status.  

    With a track record of transparent commercial use of
U.S.-controlled technology, SMIC now can receive and use
approved U.S. equipment and materials without the delays
and costs associated with traditional export licensing. 
Moreover, unlike traditional licensing, this VEU
authorization applies across sites (to all facilities
included in SMIC's VEU application, including Cension in
Chengdu), extends to all technology nodes included in
SMIC's VEU application, and has no expiration date.  

    Matthew Szymanski, Vice President for Corporate
Relations and Manager of Export Compliance for SMIC, said,
"SMIC is happy to be among the first trusted customers
in this program.  VEU will further enhance our ability to
buy leading edge equipment and supplies from the U.S., and
advance our technological capabilities.  VEU should assist
our long-term planning because it removes licensing
uncertainties for all facilities that we own or operate,
currently including Cension in Chengdu and, we anticipate,
WXIC in Wuhan (when it is mature enough to qualify).  In
the big picture, the VEU program should simplify the sale
of U.S. equipment and supplies to China, contributing
toward more balanced U.S.-China trade."  

    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
0.35um to 90nm and finer line technologies.  Headquartered
in Shanghai, China, SMIC has a 300mm wafer fabrication
facility (fab) under pilot production and three 200mm wafer
fabs in its Shanghai mega-fab, two 300mm wafer fabs in its
Beijing mega-fab, a 200mm wafer fab in Tianjin, and an
in-house assembly and testing facility in Chengdu.  SMIC
also has customer service and marketing offices in the
U.S., Europe, and Japan, and a representative office in
Hong Kong.  In addition, SMIC manages and operates a 200mm
wafer fab in Chengdu owned by Cension Semiconductor
Manufacturing Corporation and a 300mm wafer fab under
construction in Wuhan owned by Wuhan Xinxin Semiconductor
Manufacturing Corporation.  For more information, please
visit http://www.smics.com .

    Information on VEU is available from the following web
sites: 
     http://www.access.gpo.gov/bis/ear/pdf/748.pdf
     http://www.bis.doc.gov/usChinaExportRule.htm



    SMIC Press Contact: 

     Reiko Chang
     Corporate Relations
     Tel:   [phone] x10544
     Email: [e-mail]