Latest News

November 2006

ST Engineering's US Subsidiary Invests
In A Canadian Company For R&D

Singapore, 24 November 2006 — Singapore Technologies Engineering Ltd (ST Engineering) today announced that its US company, Vision Technologies Systems, Inc. (VTS), has acquired 49% of the common stock of 1699590 Ontario Inc for US$250 through its wholly-owned subsidiary, iDirect Inc (iDirect). In addition, iDirect has exercised its right to purchase 80,000 Class A non-voting preferred shares, at an exercise price of US$1.00 per share. 1699590 Ontario Inc will be renamed iDirect Canada Inc (iDirect Canada). The stake is being acquired from the company's three founding shareholders, Mr John Clarke, Mr Aneesh Dalvi and Mr Michael Carter (Founders) who will retain 51% stake in the company. Consequent to this acquisition, iDirect Canada has now become an associated company of ST Engineering.
These investment terms were arrived at between iDirect and the Founders on a willing buyer, willing seller basis, after negotiations between the parties. The acquisition is not expected to have any material impact on the consolidated earnings per share of ST Engineering for the current financial year.
iDirect Canada has expertise in modem design and broadband IP transport down to the chip level design. This acquisition brings new capacity for research and development for the next generation remote Internet access system. The new organisation will provide iDirect additional resources to develop and integrate new transport technologies which will increase the platform's network efficiency and flexibility. Canada also offers readily available engineering expertise with the right skill-sets in this sector as well as attractive development incentives provided by its government.

iDirect Inc, a subsidiary of Vision Technologies Systems Inc., designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was awarded the 2005 World Teleport Association Teleport Technology of the year, the Innovation & Technology of the Year by The ISCe Advisory Board, and named number one in the Deloitte & Touche Virginia Technology Fast 50 list of the fastest-growing U.S. technology companies. iDirect operates its corporate headquarters in Herndon, Virginia and has regional offices in Europe, Asia, and covering Latin America. Please visit www.idirect.net.

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 $3.34b in FY2005. Its market capitalisation of over $8b ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has about 16,000 employees worldwide, and over 100 subsidiaries in 20 countries and 35 cities. Please visit www.stengg.com.

Media contact:

Lim Beng See
Vice President / Head, Corporate Communications
Singapore Technologies Engineering
Tel: (65) 6722 1883
Fax: (65) 6720 2293
Email: limbs@stengg.com

Magdalen Loh
AVP / Head, Corporate Communications
Singapore Technologies Electronics Limited
Tel: (65) 6413 1788 / 9822 3321
Fax: (65) 6484 8840
Email: magloh@stee.stengg.com