Silex Microsystems, November 15, 2007

Silex continues to move in top gear. Sales more than doubled in the third quarter, bringing turnover so far in 2007 up 83 percent to 18.4 million dollars while our operating profit increased to 2.7 million dollars.

The SIL-VIA™ patent, allowing us to conduct electricity from back to front of a chip, facilitates the production of smaller MEMS, something that is particularly appreciated by our customers in the handset market. We have also seen an increasing demand for MEMS from customers in life science and telecommunications. These sectors are now poised for strong growth, as applications made possible by MEMS-technology bring about important advances. Taking part in advancing technology is at the heart of our business.

Our confidence is boosted by the fact that more and more of our customers are moving into regular volume production. So far in 2007, volume production has accounted for 55 percent of sales. That is clear evidence that our success is closely intertwined with the success of our customers.

What delights me further is that Silex operations are increasingly profitable. In the first 9 months of 2007, Silex clocked operating margins at 15 percent. To me, that confirms our notion that the business logic in the MEMS foundry business is the same as in IC foundry. Volume production increases efficiency, improves quality even further and enhances our profit margins.

For Silex, these are important signals to step up our efforts further and to start investigating our options for expanding our manufacturing capacity. Our aim is to be a highly appreciated partner to our customers, and as they grow we need to do the same. Therefore, we have investigated various expansion possibilities and I expect to be able to announce a decision to invest in a new production line adjacent to our current line in Sweden in the near future.

In the meantime, we have strengthened our team further both at our manufacturing site in Sweden as well as at our offices and representations in the US, Japan and Asia, to be able to continue to deliver superior services to be a true partner to our customers. We continue to be greatly appreciative of the support our customers show us.

Jan Nerdal, CEO