Latest News

January 2007

ST Electronics Awarded $255M Shared Services Contract From MINDEF And Incorporates New Subsidiary
To Focus On e-Government Services

Singapore, 31 January 2007 — Singapore Technologies Electronics Limited (ST Electronics) has been awarded a 10-year contract by the Ministry of Defence (MINDEF), worth $255m, to provide shared services to active personnel, regulars and NSmen of the Singapore Armed Forces (SAF). The contract, was awarded to ST Electronics’ wholly-owned subsidiary, ST Electronics (Info-Software Systems) Pte Ltd (STEE-InfoSoft). ST Electronics is the electronics arm of Singapore Technologies Engineering Ltd (ST Engineering).

The award of this contract 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.

MINDEF shared services are currently provided by D’eXecutive Services (DES), a division of MINDEF’s Defence Management Group (DMG). With ST Electronics’ experience in managing MINDEF projects and its growing focus in offering managed services, ST Electronics is able to provide more value-added and secure managed services effectively and efficiently.

To support and meet MINDEF’s evolving needs, STEE-InfoSoft has incorporated a wholly-owned subsidiary, ST Electronics (e-Services) Pte. Ltd., which will provide managed services to MINDEF and the SAF community. Through this partnership with MINDEF, the new ST Electronics subsidiary aims to offer and grow its e-Government services business to other government agencies subsequently.

ST Electronics will work closely with MINDEF to manage the transition of DES’ operations to the new subsidiary.

This project will support more than 360,000 users in MINDEF and the SAF.

ST Electronics has been a long term partner of the Singapore Government, providing a wide range of ICT and electronics solutions. MINDEF's outsourcing of their managed services to ST Electronics further affirms their confidence and trust in us. We will manage this project by leveraging on our experience in ICT and e-Government solutions, system security management and technical capabilities. This contract further validates our leadership position in managing and delivering competitive large-scale e-Government projects for local and international customers. We will deliver best-in-class, cost-effective and quality services to MINDEF and the SAF while ensuring the confidentiality, integrity, and accountability of information.

SEAH Moon Ming
President, ST Electronics

ST Electronics (Info-Software Systems) Pte Ltd, a wholly owned subsidiary of ST Electronics, has 20 years of experience in designing, implementing and supporting mission critical Command, Control & Intelligence (C2I) systems including C2 simulation. Using its Common Application Platform (CAP) and dual use technology, it delivers Homeland Security systems and e-Government services and solutions. Its e-Government implementations comprise managed services and turnkey solutions. Based on its Service Transformation™ framework, the company delivers premier quality solutions and services, in turn enabling its customers to better serve their customers.

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, realtime command & control, training and simulation, intelligent building management, and information security and mobile commerce 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 $3.34b in FY2005. With a market capitalisation in the region of $10b, it ranks 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