ASAT's Announces Production of Modular System Packages.

Business Editors/High Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 10, 2001

ASAT Holdings Limited (Nasdaq:ASTT) and ASAT Inc., providers of innovative solutions in integrated circuit (IC) package design, assembly and test, today announced the availability of its family of Modular System Packages (MSP) for large production volumes in its Hong Kong manufacturing facility. MSP modules accommodate very flexible customized designs with wire connections between die to passive component or die-to-die. Some of the features of the MSP include high IO capability, isolated interposer rings, built-in thermal performance and shorter communication links. It is also available with lead-free solder paste. The package offerings include standard leaded packages (MQFP and PLCC), array packages (PBGA, fpBGA, and LGA) and the new Kestral package (TAPP).

Manufacturing of the MSP packages is accomplished on a dedicated line for solder reflow and can accommodate EIA 0402 and EIA 0201 passive components as well as active components. Final package processing is accomplished on ASAT's existing assembly lines and utilizes its standard back-end processing equipment.

"With a modular approach to our assembly lines, we are well positioned to add capacity and keep up with the requirements as the demand for systems in packages continues to increase," said Jim Healy, president of ASAT Inc. "We believe demand for our MSP packages will increase, based on future growth in the consumer electronics, wireless, and communications markets."

ASAT's MSP family can accommodate conventional chip and wire processing with gold wire bonding, eutectic flip chip for direct chip attach, or "known good package" assembly utilizing QFN and other plastic packaging techniques. By simply duplicating the existing dedicated lines, additional capacity can easily be accommodated.

About ASAT Holdings Ltd.

ASAT Holdings Limited is a leader in advanced integrated circuit package designs and has provided outsource assembly and test services for the semiconductor industry for over ten years. The company assembles a broad selection of advanced leaded and ball grid array (BGA) packages utilizing advanced technology characterized by higher electrical and thermal performance. The company also has multi-chip module and flip-chip assembly lines, and offers testing for complex broadband mixed-signal and system-on-a-chip devices used in communications. ASAT is the first packaging company to develop Moisture Sensitive Level One (MSL-1) capability on all leaded products.

ASAT has facilities and offices in Asia, Europe, and across the U.S., with major manufacturing facilities in Asia and Europe. ASAT Inc., exclusive distributor of ASAT Ltd.'s services in the United States, is located at 46335 Landing Parkway, Fremont, CA 94538, phone [phone], fax [phone]. Web site: www.asat.com.

This news release contains a number of forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Potential risks and uncertainties include competitive pressures; economic conditions generally, developments in the semiconductor industry and end markets of the Company's customers. More information on potential factors that could affect the Company's results is included in the Company's most recent filings with the Securities and Exchange Commission.