Singapore, 29 February 2008 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that ST Electronics (Training & Simulation Systems) Pte. Ltd. (STEE-T&S) has acquired from Antycip Convergie SA 60% of its subsidiary, Antycip Simulation Ltd (Antycip Simulation), at a purchase consideration of Euro 2.3m (about S$4.84m). Antycip Simulation was valued at an enterprise valuation of Euro 3.8m as at December 2007. Antycip Convergie SA and key employees of Antycip Simulation will retain the remaining shares. STEE-T&S is a wholly-owned subsidiary of ST Engineering's electronics arm, Singapore Technologies Electronics Limited (ST Electronics).

This investment consideration was arrived at on a willing buyer, willing seller basis, taking into account Antycip Simulation's past performance, current profitability and future prospects. This transaction will be financed by internal cash resources and debt.

The acquisition is not expected to have any material impact on the consolidated earnings per share and net tangible assets per share of ST Engineering for the current financial year.

The acquisition will enable ST Electronics to leverage on Antycip Simulation's sales channel and excellent customer relationships to market and distribute its simulation intellectual property in Europe.

Antycip Simulation is recognised as an expert in the delivery of market leading simulation software, hardware and integrated solutions. With over ten years of presence in the training and simulation market, Antycip Simulation has regional offices with commercial and technical support in the United Kingdom, France, Germany, Sweden, Italy and Spain. Antycip Simulation's core competencies include Commercial-Off-The-Shelf (COTS) based real-time 3D development software toolkits, integrated and immersive projection and display solutions, consultancy services and customised solutions.

[...]