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News & Events

Archive News - September 2004

ST Electronics Acquires 21.35% Equity In ECS Holdings Limited

SINGAPORE, 9 September 2004 — Singapore Technologies Electronics Limited (ST Electronics) and ECS Holdings Limited (ECS) today announced that ST Electronics has acquired 21.35% equity in ECS Holdings Limited (ECS) from Solectron Technology Singapore Pte Ltd (Solectron) for a cash consideration of S$24.8m. This acquisition was made through ST Electronics’ subsidiary SES Systems Pte Ltd (SES).

The purchase consideration for the investment was based on an average closing price of ECS as quoted on the Singapore Exchange over 30 consecutive trading days immediately preceding the date of the term sheet signed between SES and Solectron.

This investment will extend SES’ capabilities and allows it to integrate its software expertise with both ECS’ Information Technology (IT) infrastructure and Enterprise expertise to offer an end-to-end mission critical IT solution to the market. In addition, it will enhance SES’ marketing network in Asia through ECS’ regional distribution channels spanning countries like China, Thailand, Indonesia, and Malaysia.

“SES and ECS are highly complementary and excellent strategic partners. SES is known for its well established technical competency and system integration expertise, especially in Singapore. Now both companies can take advantage of a larger business network for cross-selling initiatives. We welcome SES into the family and will work closely together to provide our customers with better products and services to enhance the overall customer experience."

~ Mr Tay Eng Hoe
Group Chief Executive Officer
ECS Holdings Limited

“SES has established itself as a leading mission-critical software systems company in the region, with major system integration installations in both Singapore and Hong Kong. Through ECS, we seek better synergies on the IT Infrastructure & Enterprise Systems to deliver end-to-end mission critical systems to our customers. Additionally, ECS is a strong and proven player in the distribution and IT value chain market and we are confident their expertise and experience will help us extend our offerings in the region, particularly in China."

~ Mr Seah Moon Ming
Chairman, SES &
President, ST Electronics

With an extensive market network of more than 13,000 resellers and partners in China and the Asean region, ECS has been helping corporations to achieve business value through effective end-to-end value chain management, including enablement of enterprise collaboration from business process to execution tools with supporting infrastructure.

ST Electronics is the electronics arm of Singapore Technologies Engineering Limited (ST Engineering). This investment by SES in ECS is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of both ST Engineering and ECS for the current financial year.

About ECS
ECS is the holding company of a group of five subsidiary companies comprising ECS Computers (Asia) Pte Ltd in Singapore, ECS Technology (China) Limited in China, ECS Kush Sdn Bhd in Malaysia, The Value Systems Co., in Thailand and ECS Indo in Indonesia. The Group is a leading IT products and services provider, serving and supporting Asia’s growing IT infrastructure and rising base of IT users. ECS is listed on the mainboard of Singapore Exchange Securities Trading Limited.

SES
SES Systems, a wholly-owned subsidiary of ST Electronics, started operations in 1986 and has since emerged as the leading systems house in the region for mobile / real-time decision support systems. A key C2I (Command, Control & Intelligence) solutions provider, SES Systems focuses primarily on providing superior Defence C2I applications, Homeland Security systems and Enterprise solutions to both civil and defence customers worldwide. SES Systems’ activities range from consultancy to design, development, systems integration, commissioning and life-cycle support of operational systems.

ST Electronics is the electronics arm of ST Engineering. It delivers innovative system solutions to defence, commercial and industrial customers worldwide. It specialises in the design, development and integration of advanced electronics systems, such as broadband RF & microwave communication, rail & traffic management, real-time command & control, training & simulation, intelligent building management, and information security and m-commerce solutions. ST Electronics applies leading edge technologies and design methodologies to meet the stringent requirements of customised electronics systems and solutions. It undertakes continuing research and development to help create cost-effective proprietary products at system and component levels providing quality solutions to customers. Please visit www.stee.st.com.sg.

Media Contact:

ECS Media Contact point
Nor Badron / Rae Chew
Edelman
Tel: (65) 6733-1110
Fax: (65) 6733-555
Email: nor.badron@edelman.com / rae.chew@edelman.com

Magdalen LOH
AVP / Head, Corporate Communications
Singapore Technologies Electronics Limited
Tel: (65) 6413-1788
Fax: (65) 6484-8840
Email: lohlmm@stee.st.com.sg