Rim Semiconductor Announces Program for Evaluation of Product by Embarq.

PORTLAND, Ore. -- Rim Semiconductor Company (OTCBB:RSMI) today announced that it has entered into a license agreement with Embarq Corporation (NYSE:EQ). As part of that agreement, the companies have initiated a technical cooperation program that will evaluate potential application of Rim Semiconductor's integrated circuits in Embarq's data network. Both companies will work with Embarq's suppliers to develop prototype network elements like digital subscriber line access multiplexers and consumer modems that utilize the Rim Semiconductor chipset. If such prototypes are developed and subsequent lab evaluations are deemed successful, Embarq will conduct a field trial of the Rim Semiconductor family of transport processors and share its observations from the trial with its equipment suppliers.

"We are committed to turning this into a long-term business relationship that offers great benefit to Embarq and to Rim Semi," stated Brad Ketch, president and chief executive officer of Rim Semiconductor Company. "Our belief is that existing digital subscriber line technologies do not offer enough benefit to service providers, and we are excited about working with Embarq on our innovative solution."

"Embarq is investigating multiple technologies in support of future wireline multimedia services," explained Steve Carter, Director of Network Services for Embarq. "This initiative with Rim Semi will help to determine if Embarq can leverage a new technology to give our customers new services across our wireline network."

The Company also announced that Rim Semiconductor Company has assigned its rights to the "EMBARQ" trademark in the United States, Puerto Rico and U.S. possessions and territories to Embarq. Embarq has granted Rim Semiconductor the right to continue to use the EMBARQ name on its line of transport processors in those locations.

About Rim Semiconductor Company

Rim Semiconductor Company (OTCBB:RSMI) has developed technology for telecommunications companies to deliver demanding new video and data services with lower network costs. The company's products allow data to be transmitted at greater speed and across extended distances over existing copper wire -- all with the highest quality of service -- for a better end-user experience. For more information, visit www.rimsemi.com.

With the exception of historical information contained in this press release, this press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the Internet and telecommunications industries; reliance on third parties, including potential suppliers, licensors, and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this press release and in the company's Securities and Exchange Commission filings. Rim Semiconductor is under no obligation to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future.