CHARTERED DELIVERS FULLY FUNCTIONAL 0.13-MICRON SILICON TO ISSI

Foundry among industry leaders in performance-driven process technology

SINGAPORE and MILPITAS, Calif. - July 16, 2001 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered) and Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today announced the delivery of the first production-ready customer device to utilize Chartered's 0.13-micron, all-copper technology. Chartered, one of the world's top three silicon foundries, shipped to ISSI last month the high-performance SRAM, which used Chartered's nominal 1.2 volt transistor offering. Volume production of ISSI's SRAM -- targeted for networking equipment, Internet access products, telecommunications and mobile communications systems, and computer peripherals applications -- is expected to ramp up in the second half of this year.

"We are very pleased with this program, which resulted in fully functional silicon that translates into improved speed and power reduction for our customers," said Gary Fischer, president and COO at ISSI. "Chartered's understanding of the system-level requirements for communications-related products has been of benefit to us and their 0.13-micron process accommodates the range of performance and power management goals for ISSI's family of next-generation products."

With this initial customer success, Chartered continues to execute to its strategy of developing manufacturing technologies tuned for system-level performance requirements. Chartered's all-copper 0.13-micron process remains on track for additional customer prototyping in the second half of this year and production in the first half of next year. In response to strong customer demand, the company is also expanding its 0.13-micron Chartered Expressä program to lower the cost of prototyping for devices requiring greater design density and higher operating speeds by offering multiple trains in the second half of this year.

"Our 0.13-micron capabilities provide our customers silicon-proven, leading-edge technology and position us well to meet their volume production at this advanced technology process node," said Dr. John Martin, chief technology officer at Chartered. "This success with ISSI validates our capability for integrating high-performance, high-density building blocks, and enables us to deliver proven manufacturing solutions to customers using system-on-chip methods for their advanced devices."

About Chartered's 0.13-micron process
The 0.13-micron process is a result of joint-development collaboration with Agere Systems, which combined resources in both Singapore and the United States. The jointly developed 0.13-micron baseline process integrates a robust suite of transistor options that address the converging requirements of communications, computing and consumer applications. These include:

• 1.2-volt nominal transistors optimized for high-frequency network ICs


• High performance 1.2 volt transistors targeted at high end PCs and telecommunications infrastructure (servers and base stations)


• Low-voltage, 1.0-volt transistors suitable for low, active power portable systems


• Low-power, low-leakage transistors for low, standby power operation of handheld battery-powered electronics.

In addition to the portfolio of transistors, the 0.13-micron process integrates a high-performance interconnect system employing copper metalization and fluorosilicate glass dielectric.

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 ISSI
ISSI, the advanced memory solutions company, designs, develops and markets high performance memory semiconductors used in Internet access devices, networking equipment, telecom and mobile communications equipment, and computer peripherals. ISSI's high speed and low power SRAMs and its low to medium density DRAMs enable customers to design products that meet the demanding connectivity, portability, and bandwidth requirements of the Internet infrastructure.

Headquartered in Santa Clara, Calif., ISSI was founded in 1988, is ISO certified, and employs approximately 250 employees worldwide. The company has offices in the United States, Europe, Taiwan, China, and Hong Kong. Additional information about ISSI can be found at www.issi.com

Chartered Safe Harbor Statement
This report 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 the anticipated progress of ISSI's volume production of SRAM and Chartered's 0.13-micron process for prototyping and production reflect our 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. Among the factors that could cause actual results to differ materially are: the difficulties in the implementation of Chartered's partnership, technology and supply alliances; the performance level of Chartered's fabrication facilities; changes in market outlook and trends, specifically in the foundry services and communications segments; customer demands; and continued success in technological advances. 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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