Rim Semiconductor Company (fka RSMI)

[deeba]

President's Letter out. Go to the Rim Semi website for a picture of the Line Card being discussed.

http://www.rimsemi.com/letters/060907.html


deeba


President's Letter

June 8, 2007

Dear Fellow Shareholders,

We here at Rim Semiconductor Company are in an exciting time. We are now seeing positive results for all of our efforts. In the past few months we have dramatically sped up our engineering and marketing activities so that we can accelerate the launch of the much-anticipated Cupria™ family of transport processors. Our engineers and marketers are pressing forward because our current and our target customers are telling us that we have huge opportunities.

We do not see any impediments in front of us. Our technical goal over the last few months has been to release version 1.6 on a line card that will work in a telephone network. The line card that is pictured here carries the version 1.6 software and is for sale. We have received one purchase order for it, and during our current quarter we expect to receive more orders.


This is just one example of one line card. As more customers use Cupria™, more line cards will be created by them. Eventually, and when Cupria™ is as successful as we believe that it will be, many different types of line cards will be in existence. Each version will fit in a different chassis or have a different size and even purpose. We are confident that the array of choices will be very large because that will mean that Cupria™ is delivering value to many different market segments.

These cards will be created by our customers, not by us. The Cupria™ chip that sits on one of our customers’ line cards will function exactly like the chip that sits on another of our customers’ line cards. So one product will have many different uses, and each use comes from customization and innovation that our customers bring.

We want to make it easy for our customers to build their line cards quickly and accurately so that they can get them into the hands of their customers, the telephone companies. Based on guidance from the telcos and the equipment manufacturers, we are creating designs that they can refer to. We are writing user manuals, ordering guides, development software and other forms of documentation. Each of these items can be done in parallel with our other hardware and software efforts.

We are simultaneously developing the FPGA version of Cupria™, the ASSP version of Cupria™ and all of the pre- and post- sales support documentation and software. We have hired several new highly qualified engineers, and as you will see from our website, still have several positions open.

Our technology is being validated by our customers, and the first purchase order has come in. So we here at Rim Semiconductor Company are at an exciting time. In the coming weeks we plan to tell you more about all of the positive results for our aggressive efforts.

Sincerely,

Brad Ketch
President and CEO
Rim Semiconductor Company


_________________

With the exception of historical information contained in this letter, this letter 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 letter and in the company's Securities and Exchange Commission filings. Rim Semiconductor is under no obligation to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future.