Rim Semiconductor Enters VOIP Market.

PORTLAND, Ore. -- Rim Semiconductor Company (OTCBB:RSMI), an emerging provider of semiconductors to the broadband telecommunications industry, today announced that it will be offering a voice over internet protocol (VOIP) semiconductor. Research company IDC forecasts that the VOIP semiconductor market will grow to over US$2.4 billion in 2009, reflecting a compound annual growth rate of 38.9 percent for the period 2004-2009.

The VOIP technology will be embedded in Rim Semi's flagship product, the Embarq(TM) E30 digital signal processor. The dual-function chip combines both the long-reach and high data rate of DSL plus the cost reduction of VOIP into one unique and powerful package. The Company's customers will benefit by eliminating the components that they currently place on their modems that are dedicated to VOIP. This reduction in components is expected to lower their cost of production by more than 20% and eliminate significant design complexity.

To achieve this innovative breakthrough, Rim Semiconductor licensed its technology from HelloSoft, Inc. of San Jose, California. Under the Technology License Agreement, the Company has obtained a license to include HelloSoft's integrated VOIP software suite in the E30 semiconductor. This VOIP package supports advanced calling features like voice mail, caller-ID, 3-way calling, call forwarding, and call waiting. The software suite includes an SIP signaling stack, algorithms for voice media processing, jitter buffering, a call control manager, media and system frameworks, application layer, operating system abstraction layer and all necessary software components required for VOIP clients. The solution is standards compliant and has been verified for interoperability with commercial SIP proxy servers and popular VOIP end point devices available in the market. All of these features are bundled into the License Agreement, including business features like fax mode and automatic fax/voice detection. The Company will pay to HelloSoft a license fee and certain royalties based on its sales of products, including the licensed technology.

"HelloSoft has long been recognized as the leader in VOIP software," stated Rama Sreeramaneni, vice president and general manager of HelloSoft. "This is the first time that our software suite has migrated into a DSL transport processor, so the E30 is a 'world-first.' We believe that market demand for processor-based VOIP will be very high."

"Our target customers are telling us that this is an important innovation. While one or two companies have implemented VOIP into an ADSL-speed chip, Rim Semi is the first to do it at better than VDSL2 speeds," states Brad Ketch, president and chief executive officer of Rim Semiconductor Company. "We are excited about our prospects for this technology."

The VOIP enhancements will ship in the E30 release 1.4 in the second quarter 2006. Release 1.4 will be available in FPGA form. The Company anticipates that it will ship the ASSP version of the E30 in the third quarter 2006.

About HelloSoft, Inc.

HelloSoft is a leading supplier of signal processing technology and Software-Defined Radio (SDR) solutions for VOIP, Cellular, Wi-Fi, and converged markets. A pioneer in feature-rich customizable VOIP platform, combined with its best-of-breed Cellular and WLAN Intellectual Property (IP) Portfolio, HelloSoft's offerings enable cost-effective, low-power and high performance mass deployment of multi-mode mobile and portable communication devices for the converged market place. HelloSoft is the inventor of RISC-only implementation, which has been adopted by 30+ major semiconductor and OEM/ODM companies worldwide. For more information, please see www.hellosoft.com.

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.