February 28, 2007 23:40 ET

Voluntary Conditional Cash Offer for STATS ChipPAC Ltd.

UNITED STATES -- (MARKET WIRE) -- February 28, 2007 -- SINGAPORE -- 3/1/2007 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, confirmed that an announcement (the "Goldman Sachs Announcement") was made by Goldman Sachs (Singapore) Pte ("Goldman Sachs"), for and on behalf of Singapore Technologies Semiconductors Pte Ltd (the "Offeror"), a wholly-owned subsidiary of Temasek Holdings (Private) Limited, that subject to certain terms and conditions as set out in the Goldman Sachs Announcement, the Offeror intends to make a voluntary conditional cash offer (the "Offer") as set out in the Goldman Sachs Announcement.

A copy of the Goldman Sachs Announcement is publicly available on the Singapore Stock Exchange website (

Details of the terms and conditions of the Offer are set out in the Goldman Sachs Announcement.

The Board will be appointing an independent financial adviser to advise the Directors of the Company who are regarded as independent for the purposes of the Offer under the Singapore Code on Take-overs and Mergers (the "Independent Directors"). A circular containing the advice of the independent financial adviser and the recommendation of the Independent Directors will be sent to the Shareholders after the dispatch of the Offer document to be issued by the Offeror. In the meantime, the Shareholders of the Company are advised to exercise caution when dealing in their shares in the Company or otherwise taking any action in relation to their shares in the Company which may be prejudicial to their interests.

The directors of the Company (including those who may have delegated detailed supervision of this Announcement) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this Announcement are fair and accurate and that no material facts have been omitted from this Announcement, and they jointly and severally accept responsibility accordingly. Where any information has been extracted from published or otherwise publicly available sources (including, without limitation, the Goldman Sachs Announcement), the sole responsibility of the directors of the Company has been to ensure through reasonable enquiries that such information has been accurately and correctly extracted from such sources or, as the case may be, accurately reflected or reproduced in this Announcement.

For the avoidance of doubt, the directors of the Company would like to inform the Shareholders that the Company and its directors take no responsibility for the contents of the Goldman Sachs Announcement.

Forward Looking Statements

Certain statements in this release, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products such as communications equipment and personal computers; reliance on a small group of principal customers; decisions by customers to discontinue outsourcing of test and packaging services; continued success in technological innovations; availability of financing; delays in acquiring or installing new equipment; our substantial level of indebtedness; potential impairment charges; ability to develop and protect our intellectual property; intellectual property rights disputes and litigation; capacity utilization; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; pricing pressures including declines in average selling prices; changes in customer order patterns; shortages in supply of key components; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; significant ownership by Temasek Holdings (Private) Limited (Temasek Holdings) that may result in conflicting interests with Temasek Holdings and our affiliates; our ability to successfully integrate the operations of former STATS and ChipPAC and their employees; labor union problems in South Korea; uncertainties of conducting business in China; unsuccessful acquisitions and investments in other companies and businesses; and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated February 28, 2006. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Singapore Contact:

    Tham Kah Locke
    Tel: (65) 6824 7635
    Fax: (65) 6720 7826
    email: Email Contact

    US Contacts:

    Drew Davies
    Director, Investor Relations
    Tel: (408) 586 0608
    Fax: (408) 586 0652
    email: Email Contact

    The Ruth Group
    David Pasquale
    Executive Vice President
    Tel: (646) 536 7006
    email: Email Contact

    Lisa Lavin
    Marcom Manager
    Tel: (208) 939 3104
    Fax: (208) 939 4817
    email: Email Contact