CHARTERED AND ERICSSON DEMONSTRATE BLUETOOTH™ TRANSCEIVER CHIP PRODUCED IN AN OPTIMIZED 0.25-MICRON RF CMOS PROCESS

RF CMOS process technology jointly developed by Ericsson Microelectronics and Chartered, used in the implementation of the Bluetooth transceiver chip, demonstrates high performance and robust device models

STOCKHOLM, SWEDEN and SINGAPORE - APRIL 8, 2001 - Ericsson Microelectronics and Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered) today announced the successful implementation of a high-performance 0.25-micron RF (radio frequency) CMOS chip. Designed by Ericsson, the Bluetoothä transceiver was verified as fully functional at first-pass design and first silicon. The achievement is a significant milestone in the ongoing technology development collaboration between Ericsson Microelectronics and Chartered, which began in December 1999. "This is an important step in our strategy to provide our customers with high performance processes as well as multiple and well proven high-volume sourcing," said Bo Andersson, president of Ericsson Microelectronics.

Ericsson's present Bluetooth offering is based on Ericsson's 0.35-micron BiCMOS technology. Using this same chip architecture, Ericsson developed the Bluetooth transceiver chip with Chartered's RF CMOS technology, enabling a smooth transition from BiCMOS to a foundry-based RF CMOS process at 0.25-micron. In future applications the target is 0.18-micron system-on-chip (SOC) solutions.

The jointly developed 0.25-micron process features a core voltage of 2.5-volts. The optimized process demonstrates extremely high performance with peak fT of 39 GHz and fmax of 45 GHz. Through continuous device scaling, the companies also achieved optimized device RF performance and low noise by proper layout with minimal parasitics. "The ability to achieve accurate model to circuit correlation at first-pass is a strong endorsement of Chartered's 0.25-micron RF CMOS process, the performance of our jointly developed RF circuit models, and Ericsson's robust design environment," said Rob Sneddon, design manager at the Ericsson Swindon Design Centre.

The 0.25-micron RF CMOS chip is optimized for Bluetooth protocol 1.1, Class 2 products. A 0.25-micron RF CMOS design kit is now available to all Chartered customers, and it includes RF transistors, passive components and device models jointly developed with Ericsson.

"By working with Ericsson, we have been able to optimize the performance of our technology and the accuracy of circuit models for RF applications such as Bluetooth," said John Martin, chief technology officer at Chartered. "Chartered's 0.25-micron RF CMOS process technology provides customers with a proven platform for first-pass success in design and silicon."

The two companies are now planning to launch final product prototype and possible volume ramp-up activities by the end of 2001. This timeline is expected to meet the near-term demand for advanced RF CMOS solutions by the communications industry.

Joint-development efforts with communications leaders such as Ericsson have enabled Chartered to accelerate its communications-smart technology roadmap and deliver production-proven system-level solutions to its customers. "Our partnership is a successful model of how a system IP leader and a silicon foundry can work together in a global R&D environment to create and deliver market-leading solutions," said Stefan Ahlquist, Chartered's managing director, Nordic region, based in Sweden.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With presence in 140 countries, Ericsson simplifies communications for customers all over the world.

About Chartered
Chartered Semiconductor Manufacturing is one of the world's top three silicon foundries. The Company's business model is distinguished by its strategy to build trusted long-term relationships, where manufacturing is part of a larger customer-service focus that includes joint development and implementation of new process technologies supporting novel applications within the broad communications market. Chartered operates five semiconductor fabrication facilities at its Singapore headquarters, with a substantially completed sixth fab that is in the process of being equipped as a 300mm facility.

A Company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market in the United States (Nasdaq: CHRT) and on the Singapore Exchange Securities Trading Limited in Singapore (SGX-ST: CHARTERED). The Company reported 2000 revenues of over US$1.1 billion. More than 4,300 Chartered employees are based at 11 locations around the world. Information about Chartered Semiconductor Manufacturing can be found at www.charteredsemi.com

About Ericsson Microelectronics
Ericsson Microelectronics is a supplier of world-class microelectronic components to manufacturers of telecom and datacom systems and mobile phones. The division's product range comprises microelectronic components for wireless applications, broadband communications, and fixed access as well as for communication via optical fiber. Ericsson Microelectronics, with its global design, development, manufacturing and sales network, is a leading supplier of products to meet the customer demand for increased speed, bandwidth and mobility.

Chartered Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, statements relating to our collaborative efforts, qualification and production plans, outlook for developments in the communications industry, our technology roadmap and the appropriateness of our business model and strategy, reflect our current views with respect to future events, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. Among the factors that could cause actual results to differ materially are: the successful implementation of our collaboration, unforeseen delays or interruptions in our qualification and production plans, changes in market outlook and customer demand, specifically in the foundry services and communications segments. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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