SINGAPORE -- 08/19/2008, UNITED STATES--(Marketwire - August 18, 2008) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) (SES: S24), a leading semiconductor test and advanced packaging service provider, today announced an innovative USB (Universal Serial Bus) module for NAND flash memory applications.

STATS ChipPAC's new USB flash drive design utilizes System-in-Package (SiP) and three dimensional (3D) die stacking technology to integrate NAND flash memory die, controller and passives onto a single packaging substrate for a cost-effective module solution. The USB module has the flexibility to accommodate multiple die configurations and can be customized for each customer or end application. Integrating all of the key components of a USB flash drive into a single package saves considerable space and allows for more effective signal routing at a lower overall cost.

In a typical design for a USB drive, the NAND flash memory die and controller are packaged in Thin Small Outline Package (TSOP), Quad Flat Pack (QFP) or Ball Grid Array (BGA) packages. These packages may contain stacked dies, depending on the memory density requirements of the end application. The discrete NAND flash memory and controller along with passives are then mounted onto a printed circuit board (PCB) using surface mount technology. This normally consumes most of the usable area allowed by the form factor of the USB flash drive.

"Semiconductor manufacturers in the NAND flash memory market face an intense challenge to increase memory density within a limited form factor and deliver a competitively priced end product to consumers," said Dr. Han Byung Joon, Executive Vice President and Chief Technology Officer, STATS ChipPAC. "Integrating the key components of a USB drive at the packaging level provides a number of benefits including increased design flexibility and advanced die stacking capability along with a reduction in size and overall cost. With our combined experience in memory card manufacturing, SiP and 3D integration technology and our advanced design capabilities, we have developed, qualified and ramped to production an innovative USB module which offers our customers a new, cost-effective NAND flash memory solution."

The innovative USB module design is the latest addition to the Company's portfolio of solutions for removable solid-state storage applications. STATS ChipPAC offers a variety of memory card formats which utilize the most up-to-date technologies and processes unique to memory cards, including integrated curve-cutting, labeling, mechanical card assembly and card packaging. In addition to assembly, STATS ChipPAC offers memory card test services with dedicated resources to support test development.

Dr. Han continued, "The key to maximizing the full value of packaging integration in removable solid-state storage devices is to provide a complete solution of design, test development, advanced packaging, memory test, card assembly and card test. STATS ChipPAC stands out in the outsourced semiconductor assembly and test market because of our focus on being a full turnkey service provider."

Forward-Looking Statements

Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products such as communications equipment and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; availability of financing; prevailing market conditions; our ability to meet the applicable requirements for the termination of registration under the Exchange Act; our ability to meet specific conditions imposed for the continued listing or delisting of our ordinary shares on the Singapore Exchange Securities Trading Limited (SGX-ST); our substantial level of indebtedness; potential impairment charges; delays in acquiring or installing new equipment; adverse tax and other financial consequences if the South Korean taxing authorities do not agree with our interpretation of the applicable tax laws; our ability to develop and protect our intellectual property; rescheduling or canceling of customer orders; changes in our product mix; intellectual property rights disputes and litigation; our capacity utilization; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; changes in customer order patterns; shortages in supply of key components; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited ("Temasek") that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated March 7, 2008. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Contact Information: Investor Relations Contact: Tham Kah Locke Vice President of Corporate Finance Tel: (65) 6824 7788, Fax: (65) 6720 7826 email: Media Contact: Lisa Lavin Deputy Director of Corporate Communications Tel: (208) 939 3104, Fax: (208) 939 4817 email: