STATS ChipPAC Reports Second Quarter 2007 Results

SINGAPORE -- 7/26/2007 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, today announced results for the second quarter 2007.

Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC, said, "Our second quarter was impacted by weak demand from certain large customers. As a result, our revenue declined about 5.2% from prior quarter. In general, we saw strong growth in our consumer and multi-applications market in applications like NAND flash, portable multimedia devices, digital TV and camera. Wireless communications were generally strong. Our personal computer business was weaker but improved towards the end of the second quarter on recovery of storage devices and graphics chipsets."

Revenue for the second quarter of 2007 decreased 11.5% to $370.2 million, compared to $418.1 million in the second quarter of 2006. This represents a sequential decline of 5.2% compared to the first quarter of 2007. Net income for the second quarter of 2007 was $7.4 million or $0.04 per diluted ADS, compared to net income of $18.0 million or $0.09 per diluted ADS in the second quarter of 2006. Net income for the second quarter of 2007 included approximately $2.0 million in share-based compensation expense as required under SFAS 123(R), $4.1 million in non-recurring expenses related to the tender offer from Singapore Technologies Semiconductors Pte Ltd, a wholly owned subsidiary of Temasek Holdings (Private) Limited, $1.7 million in impairment on the Company's assets used to manufacture discrete power packages that are classified as held for sale and $1.0 million in restructuring expenses.

Tham Kah Locke, acting Chief Financial Officer of STATS ChipPAC said, "We continue to focus our capital spending on strategic customer programs and to emphasize the generation of cash flow from our operations. In the second quarter of 2007, we spent approximately $55.4 million in capital expenditures, which was 15.0% of revenue compared to 26.9% of revenue in the second quarter of 2006. Gross margin in this quarter was 18.1% compared to 19.9% in prior quarter. The margin declined due to lower revenue."

Outlook

Tan Lay Koon commented, "For the third quarter, we expect revenue to be approximately in the range of $389.0 million to $408.0 million or in the range of 5% to 10% higher than the second quarter of 2007, with US GAAP net income in the range of $18.0 million to $24.0 million, which represents US GAAP net income per diluted ADS of $0.08 to $0.11, including the impact of approximately $0.01 per diluted ADS for the expensing of share-based compensation."

Investor Conference Call / Webcast Details

A conference call has been scheduled for 8:00 a.m. in Singapore on Thursday, July 26, 2007. This will be 8:00 p.m. in New York on Wednesday, July 25, 2007. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.

The call may be accessed by dialing 1-201-689-8560. A live webcast of the conference call will be available on STATS ChipPAC's website at www.statschippac.com . A replay of the call will be available 2 hours after the live call through noon on Thursday, August 2, 2007 (in Singapore) or midnight on Wednesday, August 1, 2007 (in New York) at www.statschippac.com and by telephone at 1-201-612-7415. The account number to access the replay is 3055 and the conference ID number is 246519.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) (SGX-ST: STATSChP) is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions. A trusted partner and supplier to leading semiconductor companies worldwide, STATS ChipPAC provides fully integrated, multi-site, end-to-end packaging and testing solutions that bring products to the market faster. Our customers are some of the largest wafer foundries, integrated device manufacturers (IDMs) and fabless companies in the United States, Europe and Asia. STATS ChipPAC is a leader in mixed signal testing and advanced packaging technology for semiconductors used in diverse end market applications including communications, power, digital consumer and computing. With advanced process technology capabilities and a global manufacturing presence spanning Singapore, South Korea, China, Malaysia and Taiwan, STATS ChipPAC has a reputation for providing dependable, high quality test and packaging solutions. The Company's customer support offices are centered in the United States (California's Silicon Valley, Arizona, Texas, Massachusetts, Colorado and North Carolina). Our offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. STATS ChipPAC's facilities include those of its subsidiary, Winstek Semiconductor Corporation, in Hsinchu District, Taiwan. These facilities offer new product introduction support, pre-production wafer sort, final test, packaging and other high volume preparatory services. Together with our research and development centers in South Korea, Singapore, Malaysia, China, Taiwan and the United States as well as test facilities in the United States, this forms a global network providing dedicated test engineering development and product engineering support for customers from design to volume production. STATS ChipPAC is listed on both the Nasdaq Stock Market (NASDAQ) and the Singapore Exchange Securities Trading Limited (SGX-ST). In addition, STATS ChipPAC is also included in the Morgan Stanley Capital International (MSCI) Index. Further information is available at www.statschippac.com . Information contained in this website does not constitute a part of this release.