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September 2007

ST Electronics To Swap Shares In Sino Stride Technology (Holdings) Limited For Shares In Shougang Concord Technology Holdings

Singapore, 5 September 2007 — Singapore Technologies Electronics Limited (ST Electronics), has entered into a conditional sale and purchase agreement (Agreement) with Shougang Concord Technology Holdings (SCT). ST Electronics is the electronics arm of public listed Singapore Technologies Engineering Ltd (ST Engineering).

SCT and ST Electronics are the major shareholders of Sino Stride Technology (Holdings) Limited (SST) with shareholdings of 71.6% and 28.1%, respectively.  Under the Agreement, ST Electronics has agreed to sell its entire 304,260,000 ordinary shares (SST Shares) in the capital of its associated company, SST, to SCT in consideration for 133,523,480 new ordinary shares (new SCT Shares) in the capital of SCT to be issued by SCT to ST Electronics (Transaction).

The valuation of SST Shares, which forms the consideration, is independently valued at HK$102m (about S$19.7m) by a valuer commissioned by SCT.  The determination of the number of new SCT Shares to be issued to ST Electronics in satisfaction of the consideration is based on the valuation of the SST Shares divided by the average market closing price per SCT share quoted on the Stock Exchange of Hong Kong Limited (SEHK) over the 10 trading days immediately preceding the date of the Agreement. The market value of the new SCT shares (adjusted for dilution due to issue of new SCT shares) based on the share price at close of trading on the SEHK on 30 August 2007 was HK$113m (about S$21.8m).

Completion of the Transaction is conditional upon SCT obtaining shareholders’ approval for the Transaction and SEHK granting the listing of, and permission to deal in, the new SCT Shares.  Upon completion, SCT will hold approximately 99.7% of SST and ST Electronics will hold approximately 7% of SCT.

The Transaction 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.

ST Electronics invested in SST at a total cost of S$18.9m, with the objective of leveraging the complementary strengths of the two companies to pursue the intelligent building market in China. This objective remains after the Transaction through the tripartite partnership of ST Electronics, SCT and SST. In addition, ST Electronics will also collaborate with SCT on other areas of mutual interests.

SCT is a holding company listed on the Hong Kong main board since 1988. Its notable shareholders include the Chinese state-owned enterprise Shougang Holdings (about 25%) and Cheung Kong Holdings (about 7%). SCT's diverse business entities, operating mainly in China, include intelligent building management system, intelligent transport systems, photomask for semiconductor, manufacturing of set-top boxes, telephone accessories, power adapters etc.; printed circuit boards and assemblies, and precision metal parts.

SST is a holding company whose main operating unit in Hangzhou, China, is engaged principally in developing and providing systems integration services and system software. Its core businesses are in intelligent building, intelligent transport, e-hospital and e-government systems. SST was listed on the Hong Kong Growth Enterprise Market (GEM) since 2002 until 2006 when SCT acquired the majority stake in SST. With two main shareholders, SCT at 71.6% and ST Electronics at 28.1%, and without a sufficient public float, SST was voluntarily delisted from the GEM in 2006.

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 and communications systems, such as broadband radio frequency and satellite communication, e-Government solutions, information communications technologies and IT, rail and traffic management, real-time 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 $4.49b in FY2006.  With a market capitalisation of over $10b, it ranks among the largest companies listed on the Singapore Exchange.  ST Engineering has more than 18,000 employees worldwide, and over 100 subsidiaries and associated companies in 20 countries and 35 cities. Please visit www.stengg.com.

Media contact:

Sharolyn Choy
VP/Director, Corporate Communications
Singapore Technologies Engineering Ltd
Tel: (65) 6722 1883
Fax: (65) 6720 2293
Email: sharolynchoy@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