C2 Microsystems Inc. Announced Headquater moved to Beijing (May 5, 2006)

SAN JOSE, CALIF. May 5, 2006 - C2 Microsystems, Inc., the leading developer of fully programmable media processor for low cost, high performance and networked media, announced that it has moved its headquarter to Beijing, China from San Jose, California. Its current presence at San Jose will serve as the Company's Advanced Technology Development center.

"China is at the center of Asia-Pacific with most of the important electronics manufacturers located nearby. China itself has the largest digital media market, and has the talents needed by C2 Microsystems for future development." Said Jinxiang (Gene) Liu, Ph.D., President and CEO of C2 Microsystems. "Moving the headquarter to Beijing will enable us to better understand the market, develop the most suitable applications to customer demand, and provide timely support to our customers. This move is a strategic decision reflecting our commitment to our customers and market".

C2 Micro plans to setup a new Sales and Marketing Group, a Product Development Center, and a Customer Support Centre for the Asia Pacific market at Beijing headquarter. The new office is located at the China Electronics Plaza, ZhongGuanCun, right at the center of Beijing High-Tech Campus.

About C2 Microsystems, Inc. C2 Microsystems, Inc. was founded by a group of veteran Silicon Valley entrepreneurs in May, 2004 with the target to create the best technology in the world for digital home and mobile entertainment. C2Micro is developing a family of low-cost, high performance, fully programmable SOCs which includes an integrated software development environment that is optimized for networked media from portable to high definition applications. C2's unique approach to media processing involves a blend of hardware and software implementation of all major audio and video codecs and an application framework that allows programmers total control of media applications: any codec, any resolution, any time, any where. For more information, visit C2 Micro online at www.c2micro.com>.