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Singapore, 7 October 2005 — Singapore Technologies Electronics Limited (ST Electronics) announced that InfoWave Pte Ltd (InfoWave), an associated company of ST Electronics (Info-Comm Systems) Pte Ltd, has restructured its business to strengthen its core competencies and market reach. With this restructuring, Infowave will have 3 core business areas, viz Telematics, Supply Chain Management and Biomedical devices. ST Electronics (Info-Comm Systems) is a wholly-owned subsidiary of ST Electronics, the electronics arm of Singapore Technologies Engineering Ltd (ST Engineering). ST Electronics (Info-Comm Systems) holds 43% shareholding in InfoWave.
As part of its restructuring, Infowave has acquired 60% equity in Autoscan Technology Pte Ltd (Autoscan) from PSA Logistics Pte Ltd. The total consideration for the acquisition is S$2.24 million. The purchase consideration for the acquisition by InfoWave is arrived at on a willing buyer, willing seller basis. The investment in Autoscan will enhance InfoWave’s ability to offer a comprehensive suite of products and applications for the supply chain market. It will also extend InfoWave’s reach into the local and Asia Pacific logistics markets through the presence of Autoscan in these markets.
To restructure and strengthen InfoWave’s access to the global market for its range of telematics products it has appointed a number of distributors and system integrators in Europe, Asia Pacific and the US. GT&T Engineering Pte Ltd (GT&T Engineering), a wholly owned subsidiary of Infowave, is one of InfoWave’s system integrators for its range of telematics products. To reposition Infowave’s distribution channel into a global network of system integrators and distributors, Infowave has agreed for GT&T Pte Ltd (GT&T PL), which is formed by the management team of GT&T Engineering, to buy into GT&T Engineering by purchasing 50% of the existing equity from Infowave at par value for $450,000. GT&T PL will further inject another S$500,000 into the company through the subscription of 5 million ordinary shares at par value of $0.10 each. The sale of shares by Infowave to GT&T PL and the cash injection by GT&T PL is expected to reduce Infowave’s ownership of GT&T Engineering to 32%, making GT&T Engineering an associated company of InfoWave.
The acquisition of Autoscan and reduction in ownership of GT&T Engineering are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
About Autoscan
Founded in 1992, head-quartered in Singapore, with subsidiaries in
Malaysia and China, Autoscan is a one-stop automatic identification and data
collection solutions provider and a leader in the provision of radio frequency
identification solutions.
About InfoWave
InfoWave is a joint-venture between ST Electronics (Info-Comm Systems)
Pte Ltd, Trek 2000 and Melodeon. InfoWave aims to be the leading provider in
the design and supply of mobile and wireless information devices. Headquartered
in Singapore, InfoWave's global market channels include US, Europe, Middle-East
and Asia-Pacific. InfoWave's Waveon™ 700 series in-vehicle terminals are
recognised as a leading player in the global transportation market. For more
information about InfoWave, please visit www.lnfowaveMobile.com.
ST Electronics, the electronics arm of ST Engineering, delivers innovative system solutions to commercial, defence, and industrial customers worldwide. It specialises in the design, development and integration of advanced electronics systems, such as broadband radio frequency and satellite communication, e-government solutions, rail and traffic management, real-time command & control, training and simulation, intelligent building management, and information security and mobile commerce solutions. Its subsidiary, ST Electronics (Info-Comm Systems) provides mobile solutions and info-comm appliances, intelligent traffic and fleet management systems, integrated communications solutions, radio and radio frequency tagging systems, mobile track & trace systems, as well as info-security products and solutions. Please visit www.stee.stengg.com
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of S$2.95 billion in FY2004. Its market capitalisation of more than S$7 billion ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has 12,000 employees worldwide, and over 100 subsidiaries and associated companies in 15 countries and 22 cities. Please visit www.stengg.com
Media Contact:
Magdalen Loh
AVP / Head, Corporate Communications
Singapore Technologies Electronics Limited
Tel: (65) 6413-1788
Fax: (65) 6484-8840
Email: magloh@stee.stengg.com
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