SMIC to Receive Investment from CIC

Semiconductor Manufacturing International Corp. (SMIC) has announced a definitive investment agreement between SMIC and China Investment Corporation (CIC), under the terms of which CIC will invest $250 million in SMIC, acquiring 360,589,053 convertible preferred shares at HK$5.39 per convertible preferred share.

After issuance and conversion of the new shares, CIC will own approximately 11.6 percent of SMIC's outstanding share capital. The agreement also provides CIC with warrants for investing an additional $50 million in SMIC on the same terms, and entitles CIC to nominate one member of SMIC's board of directors.

"We are very pleased with our new partnership with CIC," said Dr. Jiang Shangzhou, Chairman of SMIC. "Their investment in SMIC provides a source of capital that allows us to take full advantage of our project pipeline. Partnering with CIC is conducive to realizing our development objectives and enhancing our competitive advantage in the international arena. We welcome this investment from CIC."

The agreement between SMIC and CIC is subject to customary conditions, regulatory approvals, and shareholder approval.

SMIC

CIC