Rim Semiconductor Completes Interim Financing.

PORTLAND, Ore. -- Rim Semiconductor Company (OTCBB:RSMI), an emerging provider of semiconductors to the broadband telecommunications industry, today announced that, pursuant to a loan agreement with an institutional investor, it has completed a round of interim financing resulting in gross proceeds to the Company of $750,000.

The interim financing follows news that Rim Semiconductor made available to customers the Embarq E30 transport processor. The E30 is a digital signal processor that enables a bundle of HDTV, high-speed internet and voice services to reach 50% farther into the telephone copper access network than competing VDSL2 products do.

The note and warrant issued in this transaction, and the common stock issuable upon exercise of the warrant, have not been registered under the Securities Act of 1933, and the Company is not under any obligation to register the warrant or such common stock. The financing was a private offering effected pursuant to Section 4(2) of the Securities Act of 1933. Additional information relating to this loan transaction is included in the Company's Current Report on Form 8-K.

The Company also announced that more than 85% of the convertible debentures which it issued in May 2005 have been converted by their holders. As a result the security interest in its assets, which the Company had granted to all of the investors in that transaction, has been released.

"I am pleased that an institutional investor which has previously invested in Rim Semiconductor continues to invest in our future," stated Brad Ketch, president and chief executive officer of Rim Semiconductor Company. "This funding is part of our ongoing efforts to raise additional capital to further the commercialization of our broadband semiconductors and to satisfy our working capital needs."

About Rim Semiconductor Company

Based in Portland, Oregon, Rim Semiconductor is an emerging fabless communications semiconductor company. It has made available an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. 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 and does not assume any obligation to revise or update any forward looking statement in this press release in order to reflect events or circumstances that may arise in the future.