STATS Adds High-End RF Test Capability to Support Frequencies up to 6.0GHz; Advanced RF test capability provides STATS customers with complete test solution.

Business Editors

SINGAPORE & MILPITAS, Calif.--(BUSINESS WIRE)--July 25, 2000

ST Assembly Test Services ("STATS" - Nasdaq : STTS, SGX : ST Assembly), a leading independent semiconductor test and advanced packaging service provider, announced today that it has added test instrumentation to expand its capabilities in radio frequency (RF) test development and production testing to support frequencies up to 6.0GHz bandwidth (both source and measure). This RF instrumentation upgrade specifically addresses test requirements for integrated circuits (ICs) in the wireless applications marketplace.

Wireless communications devices used in cellular phones, two-way pagers, wireless local networks (WLAN), global positioning by satellite (GPS), and Bluetooth(TM) technology devices can now all be accommodated in production testing at STATS. Adding RF test capabilities with technical features for both source and measure frequency range of up to 6.0GHz is essential in meeting the test requirements for mobile handsets and WLANs.

An important technical feature, which STATS' expanded RF test capabilities now support, is frequency hopping (FH). Frequency hopping, the pseudo random movement of data between channels, is an essential requirement for the testing of Bluetooth(TM) technology devices.

"Wireless technology is significantly enhancing the way we communicate and access information," said C. K. Tan, Vice President of Test at STATS. "It is the driving force behind the accelerating advancements being made in RF device designs. STATS now has the capability to support these customers and their advanced RF devices both in test development and in production testing."

STATS' focus on strengthening its wireless communications capability is a logical next step from its already established test technology for wired communications. The goal is to provide a comprehensive range of advanced test technology for its growing communications customer base. The wireless market is also one of the fastest growing technology sectors.

According to Cahners In-Stat Group (www.instat.com), a high-tech market research firm, the wireless data market is estimated to grow to 25 million subscribers in 2003 from 1.7 million users today. To offer the latest in test services for RF devices, STATS plans to continue to enhance its equipment and expand its capabilities in response to the growth in the wireless communications industry.

"Our early commitment to address the test requirements of the wireless communications market sector has enabled STATS to offer our customers a complete test solution. By offering test capabilities up to 6.0 GHz, STATS now covers the majority of wireless device applications," said Tan. "In addition, STATS is an adopted member of the Bluetooth(TM) Special Interest Group (SIG) and plans to work with customers worldwide to jointly develop Bluetooth(TM) test programs. "

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, 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 has a current market capitalisation in excess of US$2 billion. Further information is available at www.stats.com.sg or www.statsus.com.

Certain of the statements in this press release are forward-looking statements, that involve a number of risks and uncertainties which 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; decisions by customers to discontinue outsourcing of test and assembly services; changes in customer order patterns; rescheduling or cancellation of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures; continued success in technological innovation; delays in acquiring or installing new equipment; litigation and other risks described from time-to-time in the Company's SEC filings, including its annual report on Form 20-F dated March 30, 2000. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Note to Editors: Bluetooth(TM) is a trademark owned by Telefonaktiebolaget L M Ericsson, Sweden and licensed to ST Assembly Test Services.