AMT And Hana Announce Merger Of Their IC Assembly And Test Operations.

PLEASANTON, Calif.--(BUSINESS WIRE)--Oct. 13, 1999--

Advanced Microtronics Technology (Mauritius) Limited ("AMT") and Hana Microelectronics Public Company Limited ("Hana") signed a definitive agreement today to merge their integrated circuit (IC) assembly and test operations, creating one of the largest IC assembly and test subcontractors in the world with annual sales of approximately US$300 million. In exchange for 43% of the combined entity, Hana will inject into AMT its IC packaging and assembly operations--Hana Technologies Limited ("HTL") based in Hong Kong and AIT International Limited and Advanced Technology Interconnect Inc, both based in the U.S. The combined entity will be renamed upon the consummation of the transaction. The transaction is subject to shareholders approval.

Based in Pleasanton, California and Batam Island, Indonesia, AMT, controlled by Newbridge Asia, is one of the world's leading providers of subcontract assembly and test services to the global semiconductor industry. AMT's revenues have grown approximately 30 percent annually over the last three years, driven by a combination of sustained growth in the overall IC market as well as the increasing trend towards outsourcing by semiconductor companies. AMT's production facility in Batam, which is situated approximately 12 miles from Singapore, provides easy access to world class infrastructure and transportation capabilities.

"AMT is a high-volume, high-quality, and cost-efficient operation focused on traditional package types and has strong relationships with major IC manufacturers. The partnership with Hana will allow the merged entity to offer a whole range of package types," said Ralph Duceour, the current chief executive officer of AMT who will assume the CEO position of the combined entity, who founded AMT in 1991. "AMT Hana with its combined resources is extremely well-positioned to compete in the marketplace."

"Aside from the operational benefits, the merger significantly enhances the strategic positioning of AMT," said Bien Kiat Tan, Managing Director of Newbridge Capital, Southeast Asia. "Hana's operation possesses solid technology fundamentals, including a significant presence in the advanced BGA and CSP packages, which we hope to use as a base for expansion and further growth. Newbridge will continue to be involved in the capacity of providing financial expertise and other strategic guidance"

Hana's IC packaging and assembly operation, Hana Technologies Limited ("HTL"), is based in Hong Kong. HTL, one of the world's leading edge advanced IC assembly operations, has a significant presence in the higher-growth segments including Ball Grid Array (BGA) and Chip Scale Packaging (CSP). Hana is listed on the Thailand stock exchange under HANA TB (Bloomberg) or HANA.BK (Reuters).

"We continue to be very bullish about the long-term prospects of the semiconductor industry," said Richard Han, Vice Chairman and CEO of Hana. "And in AMT we have found an ideal partner to HTL because of its low cost structure coupled with high service quality and a world-class customer base."

Newbridge Asia is a leading private equity firm backed by Texas Pacific Group ("TPG") and BLUM Capital Partners, L.P., formerly Richard C. Blum & Associates, which jointly established Newbridge in 1994. Recent investments include: Korea First Bank, Kerry Properties, Ltd. and P.T. Astra Microtronics Technology. Newbridge has offices in Singapore, Hong Kong, Shanghai and San Francisco.