TAIPEI, Taiwan, Oct. 7 /Xinhua-PRNewswire-FirstCall/ -- Advanced Semiconductor Engineering, Inc. (NYSE: ASX; TAIEX: 2311; "ASE" or the "Company"), announces its unaudited consolidated net revenues for the month of September 2005. ASE also announces today that ASE Test Limited (ASE Test), one of the Company's subsidiaries, signed an Asset Purchase Agreement with Flextronics for Flextronics to acquire ASE Test's camera module assembly operation in Penang, Malaysia for around US$18.7 million. The purchase price is expected to cover the book value of the equipment and inventory to be transferred to Flextronics, plus an acquisition premium that reflects certain intangibles. Under the agreement, ASE Test will sell the assets and inventory, and transfer the employees, of its camera module assembly operations in Penang, Malaysia to Flextronics. In addition to the Asset Purchase Agreement, both parties signed a Tenancy Agreement for Flextronics to lease from ASE Test the factory floor space currently housing the camera module assembly operations. Both parties are expected to enter into a Transition Service Agreement to ensure a smooth transition of such operation from ASE Test to Flextronics. As part of the Agreements, ASE Test will not invoice Flextronics the normal selling price of the camera modules shipped during the month of September 2005 (also known as the "Transition Period"). Instead, Flextronics will reimburse ASE Test for the actual costs incurred by ASE Test in the assembly of camera modules during the Transition Period. As a result, ASE Test will not recognize revenues from the assembly of camera modules shipped to Flextronics in September. Net revenues excluding camera module business in Malaysia for the month ended September 30, 2005, represents an increase of 8% over the prior month and increase of 16% over the month ended September 30, 2004. Total net revenues for the month ended September 30, 2005, represents an increase of 4% over the prior month and increase of 7% over the month ended September 30, 2004. On a quarterly basis, the Company's net revenues excluding camera module business in Malaysia in 3Q05 increased by 21% sequentially and increased by 8% year over year. Total net revenues increased 19% compared with 2nd quarter of 2005, and increased 1% compared with year ago quarter. CONSOLIDATED NET REVENUES (UNAUDITED) * Sep Aug Sep Sequential YoY (NT$ Million) 2005 2005 2004 Change Change Net Revenues excluding camera module business in Malaysia 7,951 7,338 6,832 8% 16% Net Revenues from camera module business in Malaysia 0 274 581 Total Net Revenues 7,951 7,612 7,413 4% 7% Q3 Q2 Q3 Sequential YoY (NT$ Million) 2005 2005 2004 Change Change Net Revenues excluding camera module business in Malaysia 21,822 17,988 20,272 21% 8% Net Revenues from camera module business in Malaysia 518 831 1,750 Total Net Revenues 22,340 18,819 22,022 19% 1% * The consolidated net revenues include, in addition to net revenues of ASE Inc.'s operations in Kaohsiung and Chungli, net revenues of majority owned subsidiaries such as ASE Test Limited, ASE (Korea) Inc. and ASE Japan Co. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor industry; demand for the outsourced semiconductor assembly and testing services we offer and for such outsourced services generally; the highly competitive semiconductor industry; our ability to introduce new testing technologies in order to remain competitive; our ability to maintain a high capacity utilization rate relative to our fixed costs; international business activities; our business strategy; general economic and political conditions; possible disruptions in commercial activities caused by natural or human-induced disasters, including terrorist activity and armed conflict; our future expansion plans and capital expenditures; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2004 Annual Report on Form 20-F filed on June 23, 2005. Contact: ASE, Inc. Joseph Tung, CFO / Vice President Freddie Liu, Financial Controller Tel: +886-2-8780-5489 Fax: +886-2-2757-6121 Email: http://www.aseglobal.com/ US Contact: Clare Lin, Director Tel: +1-408-986-6524 Email: DATASOURCE: Advanced Semiconductor Engineering, Inc. CONTACT: Joseph Tung, CFO and Vice President, or Freddie Liu, Financial Controller, +886-2-8780-5489, or fax, +886-2-2757-6121, or , or Clare Lin, +1-408-986-6524, or , all of ASE Web site: http://www.aseglobal.com/

Copyright