CHARTERED OUTLINES PLANS TO ENHANCE eBUSINESS SERVICES AND CAPABILITIES

CHARTERED OUTLINES PLANS
TO ENHANCE eBUSINESS SERVICES AND CAPABILITIES

Leading dedicated foundry delivers initial milestone with launch of integrated, web-based portal and online prototyping service to worldwide customer base

SINGAPORE - July 9, 2003 - Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries, today outlined plans to enhance its eBusiness model, with the goal to extend a dynamic eBusiness network environment where information is available on demand for facilitating ongoing, borderless communication and fostering supply-chain collaboration among Chartered's worldwide customers, partners, suppliers and employees.

The eBusiness enhancement initiative will be implemented as an ongoing effort with milestones delivered in phases. It involves streamlining business processes as well as achieving information and business systems integration across three major supply-chain activities: buy, make and sell. With today's announcement, Chartered achieved its initial milestone of enhancing its "sell" capabilities by upgrading the Chartered Online Access System (COLAS), which is an essential part of Chartered's customer services and virtual online business support strategies, to a more responsive and streamlined integrated business platform. By enhancing COLAS, Chartered's objectives are to effectively support customers' supply-chain strategies and to accelerate their access to Chartered's complete suite of value-added foundry services and solutions.

As part of this initial phase, Chartered upgraded COLAS to an integrated web-based portal platform utilizing the Plumtree Corporate Portal offered by Plumtree Software, the enterprise web leader who creates a comprehensive Web environment for employees, customers and partners across the enterprise to interact with different systems and work together. Through the enhanced portal, customers will be able to view integrated databases for technical specifications, experience better information search, and gain broader access to detailed technical and product reports. Other value-added features include customizable preferences for information access, support for multiple languages, and a simpler user interface. The portal is accessible directly from Chartered's web site, www.charteredsemi.com, and has been launched to Chartered's worldwide customer base.

Additionally, as part of the enhanced COLAS, Chartered has also successfully integrated and launched Webview, which is an online prototyping service for enabling customers through any-time access for performing design rule results verification and final checks before reticle release.

The launch of the enhanced portal and online prototyping service builds upon Chartered's successful connection earlier this year of its back-end business systems, such as electronic product testing, production monitoring and enterprise resource planning systems, directly with its customers' and partners' proprietary systems. This end-to-end connectivity, which deploys the webMethods Integration Platform and is standardized on RosettaNet's data exchange formats, allows participating customers and partners timely access to Chartered's information on work-in-process, product order, shipping and product testing status.

"Chartered is committed to delivering world-class semiconductor product solutions and we seek to differentiate ourselves by offering a best-in-class customer service model that evolves with our customers' changing needs," said Tang Yong Ang, vice president of fab support operations and acting chief information officer at Chartered. "We believe that an effective eBusiness infrastructure has the potential to empower our business, connect people and enhance our workplace. And we are committed to fostering more closely coupled supply-chain relationships that will result in greater opportunities for market success through sharing of information, resources and expertise."

Upcoming eBusiness Enhancement Deliverables

The next phase of Chartered's COLAS enhancement efforts will drive towards customer empowerment through the ability to proactively interact and manage the entire business engagement process within Chartered's dynamic manufacturing environment. The next deliverables, which are aimed at improving information access and providing greater transparency, include:

About Chartered

Chartered Semiconductor Manufacturing, one of the world's top three dedicated semiconductor 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 markets. In Singapore, Chartered operates five fabrication facilities and has a sixth fab, which will be 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 3,500 employees are based at 11 locations around the world. Information about Chartered can be found at www.charteredsemi.com.

Chartered Safe Harbour Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995

This news release may contain forward-looking statements, as defined in the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements 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. For example : changes in market outlook or customer demands; the availability of COLAS; the difficulties, interruptions or unforeseen delays in the implementation of our eBusiness infrastructure and enhancement initiative. 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.