TAIPEI, Taiwan, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- Advanced Semiconductor Engineering, Inc. ("ASE Inc.") (TAIEX: 2311; NYSE: ASX) today announced that the Securities Industry Council of Singapore ("SIC") has ruled that the proposed acquisition by ASE Inc. of the remaining shares of its majority-owned subsidiary ASE Test Limited ("ASE Test"), which ASE Inc. does not directly or indirectly own, through a scheme of arrangement under Singapore law (the "Proposed Scheme"), will be conditionally exempted from certain rules of the Singapore Code on Take-overs and Mergers (the "Code"). The SIC has ruled that the Code generally applies to the Proposed Scheme, but has granted certain standard exemptions, subject to the following conditions: (1) that ASE Test shareholders acting in concert with ASE Inc. abstain from voting on the Proposed Scheme; (2) that directors of ASE Test who are also directors of ASE Inc. abstain from making a recommendation on the Proposed Scheme to ASE Test shareholders; (3) that ASE Test appoint an independent financial adviser to advise ASE Test shareholders on the Proposed Scheme; and (4) that ASE Inc. consult with the SIC prior to invoking any of the conditions to the consummation of the Proposed Scheme. The Proposed Scheme is subject to the requisite approval of ASE Test shareholders and other customary closing conditions. If the requisite approval of ASE Test shareholders is obtained and the other closing conditions are met, the Proposed Scheme is currently expected to be consummated during the first quarter of 2008. ASE Inc. today also announced that it does not intend to revise the consideration offered in the Proposed Scheme (the "Scheme Consideration"). Accordingly, pursuant to the provisions of Rule 20.2 of the Code, ASE Inc. will not be permitted under the provisions of the Code to increase the Scheme Consideration or amend the terms of the offer made by it to ASE Test shareholders in connection with the Proposed Scheme. Further, in the event the Scheme fails due to insufficient votes required to obtain the requisite approval of ASE Test shareholders, pursuant to the provisions of Rule 33.1 of the Code, ASE Inc. will not be permitted to make a further or new offer for the shares of ASE Test for a period of 12 months from the date the Scheme fails, unless the consent of the SIC is obtained. In connection with the Proposed Scheme, ASE Inc. and ASE Test will file a statement on Schedule 13E-3 with the U.S. Securities and Exchange Commission, which will contain the disclosure document for the Proposed Scheme (the "Scheme Document"). The final Scheme Document will be mailed to ASE Test shareholders when it is available. ASE Test shareholders are encouraged to read the Scheme Document, which will contain important information regarding the Proposed Scheme. About ASE Inc. ASE Inc. is one of the world's largest independent provider of integrated circuit ("IC") packaging services and, together with its approximately 51% owned subsidiary ASE Test Limited (NASDAQ:ASTSF), the world's largest independent provider of IC testing services, including front-end engineering test, wafer probe and final test services. ASE Inc. currently has approximately more than 200 international customers. With advanced technological capabilities and a global presence spanning Taiwan, Korea, Japan, Singapore, Malaysia and the United States, ASE Inc. has established a reputation for reliable, high quality products and services. For more information, visit our website at http://www.aseglobal.com/. The common shares of ASE Inc. are listed on the Taiwan Stock Exchange under the symbol "2311". The American Depository Receipts of ASE Inc. are listed on the New York Stock Exchange under the symbol "ASX". The directors of ASE Inc. (including any director who may have delegated detailed supervision of this press release) have taken all reasonable care to ensure that the facts stated and opinions expressed in this press release are fair or accurate and that no material facts have been omitted from this press release and they jointly and severally accept responsibility accordingly. Where any information has been extracted from published or publicly available sources the sole responsibility of the directors of ASE Inc. has been to ensure, through reasonable enquiries, that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release. Forward-Looking Statements All statements other than statements of historical facts included in this press release are or may be forward looking statements. Forward-looking statements include but are not limited to those using words such as "seek", "expect", "anticipate", "estimate", "believe", "intend", "project", "plan", "strategy", "forecast" and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "may" and "might". These statements reflect ASE Inc.'s current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not guarantees of future performance or events and involve known and unknown risks and uncertainties. Accordingly, actual results may differ materially from those described in such forward-looking statements. Shareholders and investors should not place undue reliance on such forward-looking statements, and ASE Inc. and Citi undertake no obligation to update publicly or revise any forward-looking statements. For further information please contact: ASE Inc. Citigroup Global Markets Taiwan Ltd. Tel: +852-2501-2035 Freddie Liu (Vice President) Tel: +886-2-8780-5489 DATASOURCE: Advanced Semiconductor Engineering, Inc. CONTACT: Citigroup Global Markets Taiwan Ltd., +852-2501-2035, or Freddie Liu, Vice President of ASE, +886-2-8780-5489 Web Site: http://www.aseglobal.com/

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