Rim Semiconductor Announces Analytical Study Describing Embarq™ System Performance; Telcordia Reports That New System Achieves 40% to over 100% Performance Improvement as Compared to VDSL2

Business Wire, August 16, 2006

PORTLAND, Ore. -- Rim Semiconductor Company (OTCBB:RSMI), an emerging provider of semiconductors to the broadband telecommunications industry, today announced that Telcordia Technologies, Inc. has concluded that Rim Semi's technology is capable of exceeding VDSL2 by 40% to more than 100%. Telcordia conducted an independent third-party contracted study comparing Rim Semi's Embarq(TM) DSL solution to the performance of VDSL2.

Telcordia's detailed study of Embarq(TM) uses accurate transmission system models including precise models of the copper telephone loop plant plus the impact of crosstalk and external noise. The resulting report describes Embarq's modulation system, discusses the performance analysis methodology used, and presents an array of performance results compared to VDSL2. The company has released this report to certain target customers.

"I was impressed with the scope of Rim Semi's Embarq(TM) solution," said Dr. Kenneth Kerpez, senior scientist at Telcordia. "We found that their technology offers multiple fields of innovation, offering significant improvement in both the amount and quality of bandwidth that can be carried over copper. Due to these breakthrough performance gains, telcos now have a cost-effective way to meet their business goals including deployment of triple play broadband services."

As the premier testing laboratory for the telecom industry, Telcordia invented most of the underlying communications protocols that power today's networks. Previously known as Bell Labs, Telcordia established the breakthrough technologies such as ADSL, ATM, Frame Relay and SONET, and still leads the way in new directions such as IMS and broadband.

"Telcordia Technologies is recognized around the world for their expertise in telecommunications technologies," said Mr. Brad Ketch, president and chief executive officer of Rim Semiconductor. "We believe this rigorous Telcordia analysis comparing our technology against current VDSL2 capabilities validates our performance advantage."

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 to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future.