CHARTERED CONNECTS WITH VCX TO EXTEND FOUNDRY'S REACH IN MIXED-SIGNAL FOR SOC DESIGN AND MANUFACTURING

Leading foundry, global IP exchange team up to streamline mixed-signal SOC design process

SINGAPORE and LIVINGSTON, Scotland - February 18, 2002 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three silicon foundries, and the Virtual Component Exchange (VCX) have entered into an agreement that designates Chartered as a preferred mixed-signal foundry for VCX partners. As part of its commitment to providing total design and manufacturing solutions, Chartered will offer VCX members mixed-signal product design kits and priority access to the Chartered Express program for prototyping their mixed-signal intellectual property (IP), thus ensuring a greater probability of first-time silicon success when customers use VCX-member IP in their designs.

In addition, Chartered and the VCX now offer an efficient link between their two organizations that streamlines the supply chain for designing and manufacturing complex semiconductor products. Through the connection, chip designers can quickly locate critical IP building blocks for system-on-chip (SOC) designs, and incorporate them into devices to be manufactured at Chartered's fabrication facilities.

"Mixed-signal IP is definitely a key area of growth in the overall IP market, and the VCX is excited to be working with Chartered as a manufacturing leader in this area. Not only does Chartered bring a new level of expertise to our listing and procurement systems, but they provide an expanded channel for all our existing members, and an incentive for other companies to take advantage of the VCX methodology," said Andy Travers, CEO of the VCX. "In addition, this marks the launch of a new Services Partner program that the VCX is implementing to help create more efficiencies throughout the entire supply chain. We are happy to have Chartered as an inaugural partner."

The VCX is the semiconductor industry's first Internet-based regulated trading exchange that facilitates the search, selection, and procurement of IP blocks from a variety of suppliers worldwide. It will work with Chartered, a VCX Service Partner, to embed versions of its IP TradeFloor and TransactionWare capabilities directly within the Chartered web site.

"As an innovator in the emerging market for mixed-signal solutions, Chartered is keenly aware that third-party IP must deliver first-pass success. For mixed-signal IP, this means the characteristics of the targeted process must be fully understood and leveraged," said Michael Buehler-Garcia, vice president of worldwide marketing and business development at Chartered. "The VCX is providing designers a valuable service in terms of being able to locate and acquire the IP they need in a very efficient fashion. By teaming with the VCX, Chartered will extend the reach of this service and reduce the time it takes for IP vendors' products to make their way into real silicon. It's another sign of our commitment to an open, flexible IP model that will improve overall time to market for our customers."

Unive First Participant
Unive, an analog IP provider, will be the first company to implement mixed-signal IP through the Chartered-VCX relationship. Unive will list its IP blocks on the VCX TradeFloor to create an efficient transaction process that enables mutual customers to rapidly embed Unive's technology in devices targeted for manufacturing with Chartered's advanced process technologies, ranging from 0.35 micron to 0.10 micron.

"Unive is pleased to be the first company to benefit from this exciting partnership," said David Jang, president and CEO of Unive. "This service is especially valuable to emerging companies like ours, because Chartered is offering a non-exclusive channel to us and we can offer our product in conformity to an industry standard like the VSIA."

Access to accurate models and the ability to "harden" IP is particularly important due to the higher frequencies and speeds of the advanced mixed-signal technologies targeted for SOC designs.

How To Use the Partnership
Customers can now log on to the Chartered web site (www.charteredsemi.com) and access a customized IP search mechanism - the VCX Gateway - in Chartered's IP Access Program section. Users can browse the VCX TradeFloor through the Gateway using specified parameters, and view information related to any of the VCX-tradeable VCs, including those supported by Chartered. From there, they can link directly to the VCX TradeFloor, which is powered by VCX TransactionWare™ technology.

This innovative system allows companies to manage the complexities of IP transactions using an integrated set of tools in a regulated environment. These tools address the entire virtual component (VC) transaction process: from searching for a VC, evaluating confidential data, negotiating a license agreement through to drafting of the license agreement.

Using industry standards - technical standards from the VSI Alliance™ and legal standards developed with the VCX membership - companies can realize time and cost savings not only in external processes (searching, evaluating and negotiating) but also internally, as the tools streamline interaction across all the relevant departments and responsibilities in a company: engineering, management, procurement/sales and legal.

For priority access to the Chartered Express program for prototyping mixed-signal intellectual property (IP), VCX Seller Members can view program details at www.thevcx.com.

About VCX
The Virtual Component Exchange is a unique Business-to-Business (B2B) software and E-commerce organization focused on producing Internet tools for trading Intellectual Property. It has already delivered the first regulated exchange for trading Semiconductor Intellectual Property (SIP): the VCX TradeFloor. Powered by VCX TransactionWare(TM), the TradeFloor tools link the Engineering, Procurement and Legal functions of both Buyers and Sellers with a common toolset and language. Alignment of data evaluation, access and contracting protocols between Buyers and Sellers, using industry standards, dramatically accelerates the speed of SIP transactions, fulfilling the common business imperative of getting more products to market in shorter time cycles. Distributed Internet access to the VCX TradeFloor is provided through the VCX Gateway - distributing VC data and transaction agents to the web-based market, extending the reach and value for Buyers and Sellers alike. To find out more about the VCX TradeFloor, or to access the VCX market channel, visit the web site at www.thevcx.com.

About Chartered
Chartered Semiconductor Manufacturing, one of the world's top three silicon foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer applications. In Singapore, Chartered operates five fabrication facilities and has a sixth fab in the process of being developed as a 300mm facility.

A Company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on the Singapore Exchange (SGX-ST: CHARTERED). Chartered's 4,000 employees are based at 12 locations around the world. Information about Chartered can be found at www.charteredsemi.com

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 the success of our collaboration with the VCX and VCX members and the potential benefits of the collaboration to customers 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 difficulties, interruptions or unforseen delays in the implementation of our collaborative efforts with the VCX and VCX members, or changes in market outlook and customer demand for mixed-signal IP. 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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