Rim Semiconductor Company (fka RSMI)

[cosmoworld7]

Letter in Proxy & Annual Report

*******************************

April 2007

Dear Fellow Investors:

Rim Semiconductor Company is focused on one thing: broadband. Our mission is to help telephone companies make more money out of their existing copper telephone wires. We believe that our unique technology is so innovative that our customers will be able to transform their old networks into state-of-the-art broadband powerhouses with just a simple upgrade.

In this, our product launch year, Rim Semi has laid the groundwork for revenue growth. Our first customer, Extreme Copper, is now in the market with a best-of-class product that is based on our innovations. Other customers are not far behind in their drive to market.

These customers will sell their products to any telephone company, military base, or corporate office park that has copper wire that delivers video or other high-speed data. Embarq Corporation, which is the US's fourth largest such network, is an example. When we meet certain conditions, they have agreed to launch a field trial of our technology. Other telephone companies around the world are in various stages of evaluating and testing our technology too.

We are gearing up to ship in very large volumes. TSMC, the world's largest fabricator of semiconductors, recently agreed to be our supplier. Our sales representatives in Europe and Asia - Axellence and AsiaKey - are proven specialists in selling broadband products to customers in their markets. Our US-based customers are also laying plans for new products that leverage our innovations.

The attached Proxy Statement and Annual Report will give you important details, including the risks associated with an investment in RSMI. I invite you to read it thoroughly and to feel free to contact me with your comments or for clarification. We are optimistic and confident that our techhology will deliver results for you, the RSMI investor.

Brad Ketch
President and CEO
Rim Semiconductor