STATS' 300MM CAPABILITIES AN INTEGRAL PART OF ITS TOTAL SOLUTION

300mm wafer FOL process with newly installed automated mounting and backgrinding in-line module production ready

Singapore and Milpitas, California, February 11, 2003 - ST Assembly Test Services Ltd. ("STATS" - NNM: STTS and SGX: ST Assembly), a leading independent semiconductor test and advanced packaging service provider, has completed qualification of its front-end assembly operations for the packaging of high performance chips from 300mm wafers.

From a packaging standpoint, much of the challenge with the industry transition to 300mm wafers is associated with the large physical size and weight of the 12-inch wafers and the way in which wafers are transported and handled during the early stages of the backend assembly process. To minimize human handling and potential damage to 300mm wafers, investments must be made in front-of-line assembly and handling equipment specifically designed for 300mm wafers. Further complicating the front-of-line assembly of 300mm wafers is the trend of advanced packaging technologies that require thinning of wafers to fit smaller device geometries. As the silicon wafers are thinned, they are at a higher risk of breakage and damage due to mishandling.

The automated Front-of-Line (FOL) in-line module that STATS has implemented is aimed at eliminating the handling risks associated with 300mm wafers. This is achieved by an automated taping of the wafer before the backgrinding process begins. During the backgrinding process, wafer thickness is automatically measured by the integrated in-line module. Upon completion of backgrinding, the wafers are automatically mounted onto metal rings. The wafer is then well supported for the detaping process in preparation for the wafer saw operation. The in-line module is capable of thinning 300mm wafers down to 100 micron (4 mils) for stacked die and SiP applications.

"300mm wafer processing offers significant benefits in terms of lower production costs and faster cycle times," said Dr. BJ Han, STATS' Chief Technology Officer. "We have carefully looked at our customer's requirements and invested appropriately into the resources necessary to support and integrate 300mm technology into our full suite of packaging and test services."

STATS established its 300mm assembly capabilities in 2002 and recently completed internal qualification. Several of STATS' customers are in the process of qualifying its 300mm assembly process.

About ST Assembly Test Services Ltd. (STATS)

ST Assembly Test Services Ltd. ("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.stats.com.sg.

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.

Read STATS company profile here.

Singapore Contacts:

Elaine Ang
Manager, Investor Relations / Corporate Communications
Tel : (65) 6824 1738, Fax : (65) 6822 8887
email : angelaine@stats.st.com.sg

Khor Hwee Eng
Senior Communications Executive
Tel : (65) 6824 1291, Fax : (65) 6822 7831
email: khorhweeeng@stats.st.com.sg

US Contacts:

Drew Davies
Director, Investor Relations
Tel : (408) 586 0608, Fax : (408) 586 0652
email : daviesd@statsus.com

Lisa Lavin
Marcom Manager
Tel : (208) 939 3104, Fax : (208) 939 4817
email : lavinl@statsus.com