Advanced Interconnect Technologies Signs Multi-Year Assembly Services Agreement With IDT and Will Purchase Assets From the IDT Malaysia-Based Assembly Operations.

AIT To Provide Additional Assembly Services to IDT; Malaysian Assembly Operations to Be Gradually Moved to Batam, Indonesia

SINGAPORE -- Advanced Interconnect Technologies (AIT) today announced the signing of a multi-year assembly services agreement with IDT (Integrated Device Technology, Inc.). As part of this agreement, AIT will purchase assembly assets from the IDT assembly operation in Penang, Malaysia. IDT is a leading provider of vital semiconductor solutions and is one of AIT's largest customers. The agreement between the two leaders allows AIT to accommodate the increased requirements from IDT resulting from the discontinuance of assembly operations in Penang.

According to the multi-million dollar agreement, AIT will gradually transfer all assembly manufacturing from Penang to its facility in Batam, Indonesia. AIT is currently expanding its operations in Batam to meet the growing demand from existing and new customers for full turnkey assembly and test services. The 400,000 square feet of expanded operational space allows AIT to accommodate additional equipment and capacity for leadframe and array package assembly and test services to meet evolving customer needs.

"AIT has always been a valuable partner in our assembly operations. With AIT handling these additional assembly requirements, there will be a seamless integration of our technologies and supply chain, which helps us meet our market demands more efficiently," said Mike Hunter, vice president, worldwide manufacturing for IDT. "As part of the agreement, AIT will provide assembly services for BGA and various leaded packages such as TQFP, PQFP, BQFP, TSOP and SOIC."

"This agreement is a significant milestone and an exciting chapter in our relationship with IDT," said Bruno Guilmart, president and CEO of AIT. "We can now more efficiently manage this portion of IDT's assembly needs. This agreement reinforces our strategic relationship with IDT and highlights our commitment to delivering world-class service and support, enabling them to excel in a highly competitive marketplace."

Semiconductor assembly and test services (SATS) providers are seeing an increasing market trend toward outsourcing of assembly and test services by integrated device manufacturers (IDMs). "With the signing of this agreement, we will boost our overall revenue and see an increase in our market share of the total available market (TAM)," said Guilmart.

About Advanced Interconnect Technologies (AIT)

Advanced Interconnect Technologies is a global provider of semiconductor assembly and test services for many of the world's most successful electronics companies. The company's turnkey services include design, assembly, test, failure analysis, and electrical and thermal characterization. AIT has received recognition for its field service and product yields from several of the industry's leading semiconductor device manufacturers. The company is also ISO 9001:2000, ISO 14001 and ISO/TS16949-2002 certified. With approximately 4,000 employees worldwide, AIT has factory locations in Batam, Indonesia and Sunnyvale, Calif. For more information about the company, its products and services, please visit its website at www.aithome.com.