IBM and Chartered Extend Technology Development Agreement to 45 Nanometer

EAST FISHKILL, N.Y. and SINGAPORE - January 24, 2005 - IBM and Chartered Semiconductor Manufacturing today announced they have signed an extension to their existing technology agreement, formally expanding their joint development efforts to 45-nanometer (nm) bulk CMOS process technology. Upon the completion of the development, the two companies will have created a common process platform spanning three major generations of advanced process technology.

The 45nm alliance builds on the multi-year agreement that the two companies signed in November 2002 to jointly develop and align on 90nm and 65nm logic processes for process-exact foundry chip production on 300-millimeter (mm) silicon wafers. It extends the development relationship through June 2008. Financial details of the agreement were not disclosed.

"The original agreement between IBM and Chartered provides a broad foundry base for leading-edge technologies to help customers improve their time to market, reduce costs and increase their overall competitiveness," said Dr. Douglas Grose, General Manager, Technology Development and Manufacturing, IBM. "The extension of the joint development to 45nm reflects the confidence we have in Chartered's expertise as evidenced in the current development program and readiness of Fab 7 to support our mutual customers."

"As we broaden and deepen our joint development relationship with IBM for leading-edge process technology, we provide our customers with a roadmap that is positioned to keep them competitive through a common process platform that scales to 45nm design. We are confident that the combined depth of technical expertise and the proven business model the IBM-Chartered relationship offers will translate into an even more attractive long-term solution for many customers," said Dr. Shi-Chung "SC" Sun, senior vice president of technology development at Chartered. "Under the original agreement, IBM and Chartered have demonstrated the benefits that customers can derive from the technology and the collaborative business model. We are now poised to scale the relationship to the cutting edge of technology development."

As with the previous nodes, the development activities will be conducted at the IBM East Fishkill facility. Each company will have the ability to implement the jointly developed and copy-exact processes in its own manufacturing facilities, providing customers with a seamless multi-foundry strategy.

About IBM

IBM develops, manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services including industry-leading Power Architecture microprocessors. IBM semiconductors are a major contributor to the company's position as the world's largest information technology company. Its chip products and solutions power IBM eServer and TotalStorage systems as well as many of the world's best-known electronics brands.

IBM semiconductor innovations include dual-core microprocessors, copper wiring, silicon-on-insulator and silicon germanium transistors, strained silicon, and eFUSE, a technology that enables computer chips to automatically respond to changing conditions.

More information is available at: http://www.ibm.com/chips.

About Chartered

Chartered Semiconductor Manufacturing (Nasdaq: CHRT, SGX-ST: CHARTERED), one of the world's top dedicated semiconductor foundries, offers leading-edge technologies down to 90 nanometer (nm) to enable today's system-on-chip designs. The company further serves its customers' needs through a collaborative, joint development approach on a technology roadmap to 45nm. Chartered's strategy is based on open and comprehensive design enablement solutions, manufacturing enhancement strategies, and a commitment to flexible sourcing. In Singapore, the company operates a 300mm fabrication facility and four 200mm facilities. Information about Chartered can be found at www.charteredsemi.com.

Chartered is a founding member of Power.org, an open standards community formed in December 2004 around chips and systems, which use Power Architecture technology.

Chartered Safe Harbor Statement under the provisions of the United States Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including without limitation, the statements relating to the creation of a common process platform spanning three major generations of advanced process technology, extension of the development relationship through June 2008, provision of a roadmap that is will keep our customers competitive through a common process platform that scales to 45nm design are subject to certain risks and uncertainties, which could cause actual results to differ materially. Among the factors that could cause actual results to differ materially are the success of the joint development efforts with IBM and the extension to 45 nm; the transfer of the technology from IBM's facility to Chartered's facility; the readiness of Fab 7 and its production plans; the continued success in our technological advances; customer demands; the rate of semiconductor market recovery, market outlook and trends; economic conditions in the United States as well as globally and competition. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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