STATS ChipPAC Announces Manufacturing Agreement With Infineon on First Generation eWLB Technology

SINGAPORE -- 8/28/2008, UNITED STATES, Aug 27 (MARKET
WIRE) --
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP)
(SES: S24), a leading semiconductor test and advanced packaging service
provider, today announced it has entered into an agreement with Infineon
Technologies AG (FSE/NYSE: IFX) to provide manufacturing services for
products based on Infineon's first generation embedded Wafer-Level Ball
Grid Array (eWLB) technology.

The relentless market demand for complex and power efficient semiconductor
devices within a continuously shrinking package footprint is increasingly
constrained by the lack of physical pad connection space. Infineon, a
leading supplier of semiconductor and system solutions, successfully
alleviated these constraints via the development and introduction of the
eWLB, a fan out wafer level packaging technology. Manufacturing services
for the eWLB will be located at STATS ChipPAC's operation in Yishun,
Singapore.

"Infineon introduced the first generation of eWLB in 2007 as a dynamic
technology that offered small package dimensions, improved electrical and
thermal performance, and maximum connection density for wireless
applications," said Wah Teng Gan, Vice President of Assembly and Test at
Infineon Asia Pacific. "Our manufacturing partnership with STATS ChipPAC
ensures we will be able to expand the number of highly integrated wafer
level packages manufactured with eWLB technology."

"eWLB is an innovative technology that offers a high performance, power
efficient solution for the wireless market. Our partnership with Infineon
to provide manufacturing services for eWLB technology aligns with our
strong focus on leading edge integration technology. With our extensive
manufacturing expertise in advanced integration technology, we are looking
forward to working with Infineon to achieve volume production of this
revolutionary packaging technology," said Dr. Han Byung Joon, Executive
Vice President and Chief Technology Officer of STATS ChipPAC.

Forward-Looking Statements

Certain statements in this release are forward-looking statements that
involve a number of risks and uncertainties that could cause actual events
or results to differ materially from those described in this release.
Factors that could cause actual results to differ include, but are not
limited to, general business and economic conditions and the state of the
semiconductor industry; level of competition; demand for end-use
applications products such as communications equipment and personal
computers; decisions by customers to discontinue outsourcing of test and
packaging services; our reliance on a small group of principal customers;
our continued success in technological innovations; pricing pressures,
including declines in average selling prices; availability of financing;
prevailing market conditions; our ability to meet the applicable
requirements for the termination of registration under the Exchange Act;
our ability to meet specific conditions imposed for the continued listing
or delisting of our ordinary shares on the Singapore Exchange Securities
Trading Limited (SGX-ST); our substantial level of indebtedness; potential
impairment charges; delays in acquiring or installing new equipment;
adverse tax and other financial consequences if the South Korean taxing
authorities do not agree with our interpretation of the applicable tax
laws; our ability to develop and protect our intellectual property;
rescheduling or canceling of customer orders; changes in our product mix;
intellectual property rights disputes and litigation; our capacity
utilization; limitations imposed by our financing arrangements which may
limit our ability to maintain and grow our business; changes in customer
order patterns; shortages in supply of key components; disruption of our
operations; loss of key management or other personnel; defects or
malfunctions in our testing equipment or packages; changes in
environmental laws and regulations; exchange rate fluctuations;
regulatory approvals for further investments in our subsidiaries;
majority ownership by Temasek Holdings (Private) Limited (Temasek) that
may result in conflicting interests with Temasek and our affiliates;
unsuccessful acquisitions and investments in other companies and
businesses; labor union problems in South Korea; uncertainties of
conducting business in China and other countries in Asia; natural
calamities and disasters, including outbreaks of epidemics and
communicable diseases; and other risks described from time to time in the
Company's SEC filings, including its annual report on Form 20-F dated
March 7, 2008. You should not unduly rely on such statements. We do not
intend, and do not assume any obligation, to update any forward-looking
statements to reflect subsequent events or circumstances.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a leading service provider of semiconductor
packaging design, assembly, test and distribution solutions in diverse
end market applications including communications, digital consumer and
computing. With global headquarters in Singapore, STATS ChipPAC has
design, research and development, manufacturing or customer support
offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST.
Further information is available at www.statschippac.com. Information
contained in this website does not constitute a part of this release.

Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788
Fax: (65) 6720 7826
email: Email Contact

Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 939 3104
Fax: (208) 939 4817
email: Email Contact

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