Latest News

December 2006

ST Engineering Wins Third Guangzhou MRT
Contract Worth RMB125M

Singapore, 28 December 2006 — Singapore Technologies Engineering Ltd (ST Engineering) today announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics), has won its third Guangzhou MRT project. The contract worth RMB125m (approximately $24.6m) is to provide Automatic Fare Collection (AFC) systems for Guangzhou Metro Line 2 and 8 extensions and Line 4 North extension in Guangzhou, the capital city of Guangdong province in China. The contract was awarded by Guangzhou Metro Corporation.

This contract award is 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.

Under the contract, ST Electronics will design, supply, install and commission the AFC system which includes station computer systems, fare gates, ticket vending machines, booking office machines, ticket checking machines and ticket encoder/sorters. The AFC system will utilise contactless smart cards for stored value tickets and contactless smart tokens for single journey tickets. The system will cover 22 stations of the three MRT lines.

The project is scheduled to begin in January 2007. Lines 2 and 8 extensions are expected to be completed by December 2008 while Line 4 North extension is expected to be completed by December 2009.

ST Electronics will leverage on the resources of its subsidiary in Guangzhou, ST Electronics-PCI Co Ltd, which is a consortium member for the project. ST Electronics-PCI Co Ltd, set up in Guangzhou in 2004, will localise a significant portion of the production and assembly works, project management and product support.

ST Electronics’ first rail contract in China was for the Guangzhou Metro Line 4. The first phase of the AFC system was commissioned in December 2005 and Phase 2 is expected to be completed by end 2006. ST Electronics also provided an on-train communications system for Guangzhou Metro Line 3. In March this year, ST Electronics was awarded its first Beijing Olympics-related project to provide an integrated traffic command centre system for the rapidly growing Beijing mass transit network.

This contract is the third MRT contract for ST Electronics in Guangzhou and its fourth in China. We will continue to address the growing demand for infrastructure and transportation solutions in fourteen key Chinese cities as they improve their public services in line with economic growth. Our “Service Transformation” business approach ensures that our customers benefit from our solutions as they improve their own quality of service delivery to their own customers. We are confident that our customers and rail commuters in China will experience the quality of our service and the efficiency of our systems.

SEAH Moon Ming,
President, ST Electronics

ST Electronics’ projects in China include intelligent building systems, systems integration and project management, VSAT products, services for extra low voltage system and transportation systems. Some of its project successes in China include intelligent building management systems for China’s tallest Jin Mao Building, International Lidu Garden condominium and Hangzhou Zhaohui Modern City, a carpark management system for Shanghai Raffles City, and a traffic management system for Suzhou City. ST Electronics installed a sound and electro-magnetic proof anechoic chamber for China Electronics Technology Group Corporation 54th Research Institute in 2005 and in-vehicle equipment for a fleet of vehicles in Beijing.

Regionally, ST Electronics’ rail solutions have been implemented in Philippines, Taiwan, Thailand and Singapore and include AFC systems, control and communications systems, security and access control, platform screen doors, passenger information system and maintenance management system.

Guangzhou Metro is a state-owned enterprise established in 1992 by the Municipal Government of Guangzhou City to manage the construction and operation of subways in the city. Guangzhou Metro has more than 6,700 employees and transports more than 470,000 people daily on its MRT Lines 1,2, 3 and 4.

ST Electronics, the electronics arm of ST Engineering, delivers innovative system solutions to government, 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, information communications technologies, rail and traffic management, real-time command & control, training and simulation, intelligent building management, and information security and mobile commerce solutions. For more information, 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 $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:

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