June 26, 2001 — MALAYSIA — AIC Corp. and U.S.-based National Scientific Corp plan to develop and manufacture advanced power protection semiconductor devices.

The two companies have signed a memorandum of understanding under which AIC will provide an approximately 6,000 square foot cleanroom in Kulim, Kedah that will be used to manufacture Thyristors and Schottky Diodes. NSC meanwhile will provide technical support.

“AICS is a leading Malaysian technology firm with a very experienced technical team, and first rate facilities in Kulim High Technology Park near Penang, Malaysia,” said Michael Grollman, president of NSC. “These facilities include a just-completed cleanroom fit for wafer fabrication services. We are excited to be able to work with AICS to further our efforts at manufacturing products for our customers and building the associated revenues for our shareholders. In addition to expertise in semiconductor production, AIC also has a strong Asian sales and marketing presence that also can assist us in gaining market share for some of these products in that part of the world.”

A more detailed agreement is expected to be in place by the end of July.

Officials say the agreement will contribute to AIC’s future earing in its core semiconductor businesses and broaden customer and product base.