eSilicon to Design and Manufacture Rim Semiconductor's Cupria Processors.

eSilicon Takes Equity Investment in Rim Semiconductor

PORTLAND, Ore. & SUNNYVALE, Calif. -- Rim Semiconductor Company (Rim Semi) (OTCBB: RSMI), an innovator in video-over-copper technology, and eSilicon Corporation, a leading supplier of custom integrated circuits, today announced they have completed an agreement for the design and manufacture of Rim Semi's Cupria[TM] Cu5001 transport processor. The Cu5001 enables broadband multimedia applications including voice, video and data delivery. As part of the agreement, eSilicon will receive shares of Rim Semi's common stock as partial compensation for its services.

eSilicon will manage the physical implementation and manufacture of the application-specific standard product (ASSP) version of the Cupria Cu5001 device, including test program development, device test, packaging and shipment of the packaged, tested parts. eSilicon's manufacturing partner, Taiwan Semiconductor Manufacturing Company (TSMC), will fabricate the Rim Semi chip.

"Among the many reasons we chose eSilicon is the exceptional quality of its design team. Their 'roots' in Bell Labs help to explain their unique skills in both design and methodology," said Brad Ketch, president and CEO of Rim Semi. "We welcome eSilicon as a new shareholder, and believe our combined capabilities will enable the rapid development and delivery of cost-efficient devices that meet our customers' needs."

"Rim Semi's innovative broadband technology, which increases the capacity of existing telephone networks, will provide the telecommunications market with a state-of-the-art solution for high-speed data applications," said Jack Harding, chairman, president and CEO of eSilicon Corporation. "We are very excited about Rim Semi's market opportunity and are pleased to become an equity partner."

The Cupria family of copper transport processors is based on Rim Semi's innovative Internet Protocol Subscriber Line (IPSL) technology. The devices deliver significantly more bandwidth over longer distances, increasing the total available market for triple play services while lowering network costs. The IP-based technology offers a better end-user experience than other video-over-copper technologies to deliver superior image quality.

About eSilicon

eSilicon combines design and production expertise to develop and manufacture custom integrated circuits for leading electronics companies. The company offers system OEMs and fabless semiconductor companies a flexible, low-cost, lower-risk path to application-specific silicon. eSilicon delivers chips customized for a wide variety of applications including consumer, computer, communications and industrial devices. For more information, visit www.esilicon.com.

About Rim Semiconductor Company

Rim Semiconductor Company (OTCBB: RSMI) develops 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.

eSilicon is a registered trademark of eSilicon Corporation. Cupria is a trademark of Rim Semiconductor Company. All other trademarks are the property of their respective owners.