Rim Semiconductor's Marketplace Experiencing Rapid Growth

Business Wire,  May 21, 2008  

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PORTLAND, Ore. -- The marketplace for the product that Rim Semiconductor Company (OTCBB:RSMI) makes is benefiting from a rapid expansion in spending at the world's wireline telephone companies. The company believes that the market for broadband chipsets is increasing from $1.3 billion in 2007 to $1.5 billion in 2008.

The market for Rim Semi's product is increasing because its end customers, the wireline telcos, are increasing their capital expenditures. According to Ovum, wireline telco capital expenditures in the fourth quarter 2007 increased by 12.6% to $8.8 billion versus $7.8 billion one year ago. Rim Semi's estimation of the chipset market size is based on private surveys, analyst reports and publicly available data.

Rim Semi's Cupria[TM] transport processor drives video, Internet and voice traffic at more than 40 megabits per second (Mpbs) 5,500 feet (1.67km) on 26AWG (0.40mm) telephone wire. Existing technologies are only able to drive data 15 Mbps at this distance on this wire type. Wireline telcos that power their networks with Cupria[TM] can reach more customers with IPTV service, and at lower cost, than they can with competing transport processors.

"When telcos spend at this rate, it means that they see a strong future for their copper wire infrastructure," stated Brad Ketch, president and chief executive officer of Rim Semiconductor Company. "Our product, the Cupria[TM] transport processor, benefits from this new wave of investment".

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.

Forward-Looking Statements

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.

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