HEI(President : Kim Young Hwan) of Seoul and Ichon, Korea and its U.S. subsidiary HEA announced today that they have entered into an agreement to sell a 90% interest in HEI’s ChipPAC business, a leader in the worldwide semiconductor assembly and test industry, to a U.S. investor group led by existing ChipPAC management and supported by Bain Capital, Inc. and SXI Group LLC, a Citicorp Venture Capital, Ltd. porfolio investment vchicle. Mr. Y.H.Kim, president of HEI, said “In today’s fast-paced business environment, successful companies focus their resources on areas that best leverage their experise, By means of this transaction, both Hyundai and ChipPAC will be able to serve their individual markets more fully. This transaction is also a further demonstration of HEI’s ability to attract foreign capital to Korea.” As a result of the transaction, HEI and HEA will receive a combination of cash, stock and debt cancellation with an approximate value of 5550 million. In addition, Hyundai will remain a shareholder in ChipPAC. “Launching ChipPAC as an independent company represents an exciting opportunity for our customers and employees. We believe that the transaction will enable us to focus more of our corporate resources and attention on providing our customers with the excellent customer service they have come to expect from ChipPAC.” Stated Dennis McKenna, President and Chief Executive Officer of ChipPAC. “Additionally, we believe this creates substanrial personal growth opportunities for our high quality employees as we build our business and continue to enhance our leadership position in our market.” ChipPAC is one of the few assembly-and-test companies in the world that is a full portfolio supplier. The company offers a full array of packaging, from basic 8-pin to 2000-pin solutions. The company has 3,500 employees worldwide, with sales offices in the United States, Japan, Korea, Singapore, and The Netherlands. ChipPAC’s ISO 9002-and QS9000-certified manufacturing facilities are located in Ichon, Korea and Shanghai, China. Worldwide headquarters and located in Santa Clara, California. Most of the company’s customers are based in the United States, with business in Europe, Japan and the rest of Asia growing repidly. HEI will remain a customer of the new company after the completion of the transaction. Additional information about ChipPAC is available on the worldwide web at http://www.chippac.com
