Oki, Chartered and IME Collaboration Brings Leading-Edge Bluetooth Solution to Market

SINGAPORE and TOKYO -- July 18, 2000 -- Combining their respective expertise in communications systems, manufacturing processes, and technology development, Oki Electric Industry Co.Ltd., Chartered Semiconductor Manufacturing, and the Institute of Microelectronics (IME), Singapore have developed a two-chip set for Oki, making it one of the industry's first complete CMOS offerings of the Bluetooth™ specification for wireless communications.

Oki's Bluetooth solution consists of a baseband digital chip paired with a radio-frequency (RF) CMOS chip whose RF transistors, passive components and device models were developed by Chartered and IME. Chartered has also developed an RF CMOS process roadmap that progresses from 0.35-micron process geometry down to 0.13-microns as needed.

By using Chartered's RF CMOS technology, Oki offers a cost-effective solution, compared to competitive implementations using costly BiCMOS or SiGe manufacturing processes, and still delivers the 2.4GHz speed requirements of the Bluetooth specification.

"Choosing an RF CMOS process implementation co-developed by Chartered and IME provides a dependable yet cost-effective solution that minimizes technology risk for our customers," said Tetsuzo Taniguchi, Vice President of Silicon Solutions Company of Oki. "This cooperative effort allows us to offer customers the performance they expect at a cost that competes successfully against other technology implementations. With Chartered as a manufacturing partner, we gain the additional benefit of having reliable wafer supply as demand for Bluetooth solutions intensifies."

Under terms of the collaboration, Chartered is manufacturing the RF CMOS chip at its Singapore campus. Oki is currently manufacturing the baseband device at Miyagi Oki Electric Co., Ltd. As the market for wireless communications devices continues to grow, the companies expect that Chartered will fabricate both devices. Chartered's flexible manufacturing strategy anticipates the role of integrated device manufacturers (IDMs) like Oki to diversify manufacturing in order to speed the time it takes to enter markets with innovative products.

IME collaborated with both parties on their respective needs in providing RF solutions to their customers. It worked with Chartered to develop high performance RF devices and models while also designing the CMOS RF front-end chip together with Oki Techno Centre, Singapore (OTCS), an offshore R&D subsidiary of Oki. According to Dr. Khen-Sang Tan, Director of IME, "Successful implementation of technology depends upon equally successful execution in manufacturing. As a frequent collaborator with Oki and its subsidiary OTCS, we knew that there was a natural fit between their requirement for an RF CMOS implementation and Chartered's manufacturing expertise in delivering advanced RF and mixed-signal technologies."

"Our relationship with Oki and IME highlights the benefits of shared technology development," said Bruno Guilmart, Chartered president of the Asia-Pacific and Japan regions. "Our manufacturing process knowledge complements Oki's systems savvy. At the same time, our flexible manufacturing strategy lets Oki depend on us for reliable wafer supply to match the market demand. This is a premier example of our win-win-win foundry business model based on a partnering strategy."

Chartered has already delivered device samples to Oki. The companies expect full production to begin two quarters from now.

According to Joyce Putscher, director of the Consumer & Converging Markets and Technologies Group at In-Stat, the Arizona-based market research firm, the emerging market for Bluetooth products is just beginning and will affect all industry areas from wireless handsets, to computing devices, to automotive and industrial markets. "We expect to see the demand for Bluetooth-enabled products growing to at least 1 billion units by 2005," said Ms. Putscher. "Consumers are not only increasing their insatiable demand for all types of mobile phones, but other wireless/cordless devices as well, from entertainment to business applications."

About Chartered
Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: CHARTERED) is one of the world's top three independent foundries providing wafer fabrication services. Guided by the tenets of trust, service, partnership, advanced technology and stability, the Company aims to provide world-class semiconductor foundry services that enable customers to create and deliver market-leading system-level solutions. Chartered operates five fabrication facilities that serve high-growth, technologically advanced applications such as communications and networking. Headquartered in Singapore, Chartered employs approximately 3400 people at its 11 locations in North America, Asia and Europe.

Chartered is traded in the United States on Nasdaq and in Singapore on the Singapore Exchange Securities Trading Limited (SGX-ST). The Company reported 1999 revenues of US $694.3 million.

About Oki
Founded more than a century ago in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer headquartered in Tokyo Japan. With more than 20,000 employees worldwide, Oki Electric provides customers with top-notch products and technologies for telecommunication systems, information systems and electronic devices through its corporate slogan "Oki, Network Solutions for Global Society." Oki's all manufacturing facilities are ISO9001 and ISO14001 certified. Visit Oki's global web site at http://www.oki.com/.

Oki Techno Centre (Singapore) Pte. Ltd. (OTCS) is an offshore R&D subsidiary fully owned by Oki established in Singapore in 1996. Major activities of the company are system LSI design and advanced RFIC design for commercial wireless applications.

About IME
Institute of Microelectronics (IME) is a corporatised national industrial R&D laboratory in Singapore whose mission is to help increase the value added from the electronics industries by engaging in relevant R&D over selected fields in microelectronics.

IME specializes in areas related to microelectronics ranging from technologies including those for Micro-Electro-Mechanical Systems (MEMS) and Deep Sub-micron ICs (DSIC) to advanced services including electronic packaging and failure analysis, and product designs of mixed-signal/RF ICs and microelectronic systems.

With more than 200 research staff, IME is located in Singapore Science Park II and occupies building space of 13000 sq. m including two clean rooms, 700 sq. m for MEMS plus 1500 sq. m for DSIC. IME is an ISO9001 certified organization. Further details about IME can be found in the web site at http://www.ime.org.sg/

Note to Chartered Investors
This news release contains forward-looking statements, as defined in the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements relating to the full production of the RF CMOS chip for OKI two quarters from the date of this release and Chartered's business model and partnering strategy reflect Chartered's current views with respect to future events and financial performance, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. For example, changes in OKI's demand for the RF CMOS chip, delays or interruptions in the production process or changes to the market outlook and customer demands for Bluetooth-enabled products could affect the foregoing forward looking statements. Although Chartered believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. A description of certain of the risks and uncertainties which could cause actual results to differ materially from those indicated in the forward-looking statements can be found in the section captioned "Risk Factors" in the Chartered's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Chartered undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.