ASAT Holdings Limited Announces Ratings Upgrade By Moody's on Guaranteed Senior Notes Due 2006.

Business Editors

HONG KONG--(BUSINESS WIRE)--Sept. 5, 2000

ASAT Holdings Limited (NASDAQ: ASTT), a leading developer and assembler of advanced semiconductor packages, reports that Moody's Investors Service has raised to Ba3 from B1 the rating on the Company's $100.75 million 12-1/2% guaranteed senior notes, due 2006.

The Company also noted that Moody's had withdrawn its rating on ASAT Limited's guaranteed senior secured term loan, due 2004, and ASAT Limited's guaranteed senior secured revolving credit facility, due 2004, which were repaid and terminated on July 18, 2000.

In a statement, Moody's said its ratings upgrade "reflects ASAT's rapid revenue growth and expanding margins, driven by increasing demand for advanced semiconductor chip packaging by communications semiconductor chip manufacturers." The ratings agency noted that for the 12 months ended July 31, 2000, the Company's operating margins grew to 26% from 20%, while revenues grew 48% to $350 million. "Over the same timeframe," Moody's stated, "ASAT generated impressive returns on assets and on invested capital, based on EBIT, of 27% and 35%, respectively."

The company raised $240 million in capital through its initial public offering on July 11 with the issuance of 20 million American Depositary Shares priced at $12 per ADS. Each ADS, which trades on NASDAQ under the symbol "ASTT," equals five ordinary shares. The Company used part of the net proceeds from the offering to repay a $40 million term loan, $17 million outstanding on ASAT's revolving credit facility, and 35% of high yield notes due 2006. The remaining cash balance of approximately $104 million will be used for general corporate purposes, including funding its expansion program.

ASAT Holdings Limited is a leader in advanced integrated circuit package designs and has provided outsourced assembly and test services for the semiconductor industry for over 10 years. The Company assembles a broad selection of advanced leaded and ball grid array 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. The Company has facilities and offices in Asia, Europe, and across the U.S., with its major manufacturing sites strategically located in Hong Kong.

This news release contains forward-looking statements intended to qualify under the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated demand for ASAT's products and services for 2000. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.