SMIC Extends NROM Technology License Agreement With SAIFUN

World-leading semiconductor foundry to produce Flash memory cards based on Saifun NROM® technology

Shanghai, China and Netanya, Israel, January 4, 2006 - Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI and HKSE: 981), one of the leading semiconductor foundries in the world and China, and SAIFUN Semiconductors Ltd. (Nasdaq: SFUN), a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market, today announced that SMIC will use the SAIFUN NROM® technology to develop and manufacture Flash memory cards.

SAIFUN NROM technology enables storage of up to four bit-per-cell or more than double the storage capacity of a basic memory cell, and has a cell architecture that requires fewer manufacturing steps, thereby reducing manufacturing costs.

 “SMIC recognizes the Flash memory card market as an important driver towards our success in the future,” said Mr. Marco Mora, Chief Operating Officer of SMIC. “Now in our second agreement with Saifun, we are excited to introduce high-density memory cards with Saifun’s advanced memory technology.  We will soon look into key distribution channels that align with our core strengths.  SMIC truly believes with Saifun’s leading memory technology and our manufacturing strength, SMIC will be able to bring to market an extremely competitive product.”

 “We are pleased that SMIC has extended our partnership into the memory card market,” said Mr. Kobi Rozengarten, President of Saifun Semiconductors.  “Since our first license agreement this past June, both companies have been working closely together to develop leading-edge Flash memory products for the data market based on the NROM two-bit and four-bit technologies. With the growing demand for high density cards, the combination of SMIC’s advanced manufacturing expertise and Saifun’s innovative NROM technology presents another significant growth opportunity for both companies.”

About SMIC
Semiconductor Manufacturing International Corporation, (“SMIC”, NYSE: SMI, HKSE: 0981.HK) is one of the leading semiconductor foundries in the world, providing integrated circuit (IC) manufacturing at 0.35um to 90nm and finer line technologies to customers worldwide.  Established in 2000, SMIC has four 8-inch wafer fabrication facilities in volume production in Shanghai and Tianjin.  In the first quarter of 2005, SMIC commenced commercial production at its 12-inch wafer fabrication facility in Beijing. SMIC also maintains customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong.  As part of its dedication towards providing high-quality services, SMIC strives to comply with or exceed international standards and has achieved ISO9001, ISO/TS16949, OHSAS18001, TL9000, BS7799 and ISO14001 certifications. For additional information, please visit http://www.smics.com.

About Saifun Semiconductors Ltd.

SAIFUN Semiconductors Ltd. (Nasdaq: SFUN) is a provider of intellectual property (IP) solutions for the non-volatile memory (NVM) market.  The company’s innovative Saifun NROM® technology allows semiconductor manufacturers to deliver high performance, reliable products at a lower cost per megabit, with greater storage capacity, using a single process for all NVM applications. Saifun licenses its IP to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products.  These include Flash memory for the telecommunications, consumer electronic, networking and automotive markets.  Among the companies licensing Saifun NROM are Infineon Technologies, Macronix International, Matsushita Electric Industrial, SMIC, Sony Corporation, Spansion, and Tower Semiconductors.