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

SINGAPORE -- 8/28/2008, UNITED STATES--(Marketwire - August 27, 2008) - 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.

Contact Information: Investor Relations Contact: Tham Kah Locke Vice President of Corporate Finance Tel: (65) 6824 7788 Fax: (65) 6720 7826 email: Media Contact: Lisa Lavin Deputy Director of Corporate Communications Tel: (208) 939 3104 Fax: (208) 939 4817 email: