Chipcon Selects STATS as Turnkey Test and Assembly Provider for High Performance RF-ICs; STATS to Provide Full Turnkey Services Including Dedicated Test Development.

Business Editors/High-Tech Writers

SINGAPORE and MILPITAS, Calif.--(BUSINESS WIRE)--March 26, 2002

Leading Norwegian fabless company, Chipcon AS, has chosen ST Assembly Test Services Ltd ("STATS") (Nasdaq:STTS) and (SGX: ST Assembly) to provide turnkey test development, assembly and final testing services for high performance and cost-effective RF (Radio Frequency) devices for the wireless communications market.

Under the agreement, STATS will provide full turnkey test and assembly services for Chipcon's CC1000 devices, including the development of dedicated test program for volume testing and production. Designed with the latest CMOS technology, CC1000 is a single-chip RF transceiver targeted at short-range wireless communications. It consumes very little power and operates at minimal voltage, which makes it ideal for the low power radio market. CC1000 is used in various electronic applications in home automation, wireless and security systems and automatic meter reading.

Based in Norway, Chipcon designs and manufactures high performance RF, analog, digital and mixed-signal ICs (Integrated Circuits) using advanced CMOS, BiCMOS and SiGE process technologies. Chipcon products are used in communication, instrumentation, automotive, consumer and industrial markets. These chips are based on Chipcon's proprietary SmartRF(R) technology platforms for high integration and cost efficiency. Chipcon's single-chip, high-performance transceivers target low-power wireless applications in the 315/433/868/915 MHz bands and are currently distributed in high volume.

Terje Berntsen, Chipcon Vice President of Operations, said, "To provide customers with superior products, it is important for Chipcon to maintain state-of-the-art semiconductor processing and time-to-market. STATS fits the bill with its total turnkey solutions, including RF testing capability and integrated test development services at the UK Test Development Center."

With proven RF experience, STATS has the capability to test frequencies up to 6.0GHz bandwidth (both source and measure). Harry H. Davoody, STATS President and CEO, said, "STATS is increasingly being recognized as the leading service provider of test and assembly for wireless communications devices such as RF products."

He added, "Our turnkey services help customers meet the market's appetite for advanced communications devices in the shortest time."

According to IC Insights Inc., the global communications IC market is expected to grow at a CAGR of 17% between 2000 and 2004. CBIC forecasts that the wireless communications segment will grow from US$10 billion in 2001 to US$30 billion in 2005.

About Chipcon AS: ( www.chipcon.com )

Chipcon is known worldwide as a leading fabless semiconductor company providing innovative standard single-chip RF products that provide low cost, low-power and high performance RF solutions for a large number of wireless applications. Chipcon also offers turnkey ASIC development, supporting customers from initial project ideas to volume production for RF and mixed signal products. Chipcon's CC400, CC900 and other single-chip high-performance transceivers target low-power wireless applications in the 315/433/868/915 MHz bands and are currently distributed in high volumes. Chipcon's well established SmartRF(R) technology platforms in combination with design expertise and hands-on experience from various high-volume products provide an invaluable foundation for Chipcon's product line.

About ST Assembly Test Services Ltd. (STATS)

ST Assembly Test Services ("STATS" - NNM: STTS and SGX: ST Assembly), is a leading semiconductor test and assembly service provider to fabless companies, integrated device manufacturers and wafer foundries. With its principal operations in Singapore and global operations in the United States, United Kingdom, Germany, Japan and Taiwan, STATS offers full back-end turnkey solutions to customers worldwide. STATS' expertise is in testing mixed-signal semiconductors, which are extensively used in fast growing communications applications such as data networking, broadband and mobile communications. STATS also offers advanced assembly services and has developed a wide array of traditional and advanced leadframe and laminate based products, including various ball grid array packages to serve some of the world's technological leaders. STATS was listed on the Nasdaq National Market and The Singapore Exchange in January 2000 and is in the Morgan Stanley Capital International (MSCI) Index and the Straits Times Industrial Index. Further information is available at www.stts.com.

Certain of the statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; 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 assembly services; changes in customer order patterns; rescheduling or canceling of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures including declines in average selling prices; continued success in technological innovations; delays in acquiring or installing new equipment; shortages in supply of key components; availability of financing; exchange rate fluctuations; litigation 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, 2002. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.