Orient Semiconductor Electronics, Limited Purchases 75% of Integrated Packaging Assembly Corporation

Business Wire, May 3, 1999

SAN JOSE, Calif.--(BUSINESS WIRE)--April 30, 1999--

Orient Semiconductor Electronics, Limited ("OSE") (TSE:2329) and Integrated Packaging Assembly Corporation ("IPAC") (OTC:IPAC) jointly announced today the signing of a definitive stock purchase agreement under which OSE purchased Preferred Stock convertible into 75% of the Common Stock of IPAC, on a fully diluted basis.

OSE purchased 4,000,000 shares of IPAC Preferred Stock, convertible into approximately 55,000,000 shares of IPAC Common Stock, for $6.8 million. As part of this transaction IPAC's secured creditors have restructured IPAC's debt, including some debt forgiveness and extended payment terms.

The new Board of Directors of IPAC will consist of three representatives of OSE, one outside independent director, and one management director. Representing OSE are Calvin Lee, President of OSE, Edward S. Duh, Vice President of OSE, and Edmond Tseng, President of OSE, Inc. (USA). The independent outside director is Don W. Brooks, CO-CEO, UMC Group (USA). The management director is Patrick Verderico, CEO and President of IPAC.

Headquartered in Taiwan, with plants in Taiwan and the Philippines and traded on the Taiwan Stock exchange, OSE is one of the leading integrated circuit ("IC") packaging, assembly and test, and subcontract companies in the world.

"I believe that integrating with IPAC will provide OSE with a significant United States presence, and OSE and IPAC will jointly be able to offer unmatched worldwide packaging, assembly and test services to the IC Semiconductor Industry," said Calvin Lee, President of OSE. "This is another major step forward in our globalization strategy and strengthens both OSE and IPAC."

"We are very happy to join forces with OSE," said Patrick Verderico, President and Chief Executive Officer of IPAC. "OSE' s investment in and commitment to IPAC provides the financial stability that we have been lacking for the past year. We believe that the stakeholders of IPAC -- shareholders, employees, creditors, customers and suppliers -- will benefit from this alliance and we are grateful for our stakeholders patience and support."

IPAC is a leading North America semiconductor-packaging foundry dedicated to assembling surface mount integrated circuits in high volumes with fast cycle times. The company's close proximity to its customers allows it to provide quick turnaround, concurrent engineering, and timely delivery for both high volume production orders as well as engineering samples.

Headquartered in Taiwan, with new manufacturing facilities in the Philippines, OSE is a worldwide leader in providing electronics services and IC packaging, assembly and test services to customers in North America, Europe and Asia. Established in 1971, OSE's revenues exceeded $300 million in 1998.

This news release contains forward looking statements that involve risks and uncertainties as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those, projected. Such risks and uncertainties include risks associated with the ability of the company to obtain sufficient additional financing on a timely basis, the cyclicality of the semiconductor industry, the company's ability to utilize its capacity, the success of the company's efforts to broaden its customer base, the level of orders from new and existing customers, average selling prices for the company's services, the company's manufacturing yields and operational effectiveness, the company's ability to return to profitability and to maintain adequate liquidity to fund its operations, and other factors that may cause the company's operating results to fluctuate in the future. Additional risks are detailed in the company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for 1998.