ASE and Mitsui Sign Cross-Licensing Agreement

Advanced Semiconductor Engineering Incorporated (ASE, TAIEX:2311) (NYSE:ASX), and Mitsui High-tec, Inc. (MHT, TSE:6966) announced today that they have entered into an agreement for cross licensing and technical collaboration for Mitsui High-tec’s HMTTM (Hybrid Manufacturing Technologies) packaging technology. Under this minimum five-year agreement, both parties will share intellectual property rights and technical expertise for the design and manufacture of HMT semiconductor packaging. HMT is a leadframe based, area array package with a more flexible footprint than a multi-row QFN and conforms to both JEDEC and JEITA design standards. As HMT utilizes a copper leadframe, it boasts thermal, electrical, reliability and cost advantages over similar laminate based packages. In addition, HMT brings to the market a QFN type package that can penetrate much higher I/O applications, at a competitive cost. "We are pleased to collaborate with industry pioneer Mitsui in this cross-licensing venture,” said Dr. Ho-Ming Tong, Chief R&D Officer, ASE Group. "This agreement will truly benefit our customers, who require leading-edge QFN packaging technologies to ensure their competitiveness in the dynamic semiconductor market. The collaboration will enable ASE and Mitsui to meet stringent market demands and bring added value to our customers worldwide.” "Our HMT technology has been well-received within the industry, therefore it makes sense to work together with industry leader ASE to strengthen the technology, increase market adoption, and accelerate the development of the companies’ current and future product lines,” said Yasunari Mitsui, Mitsui High-tec’s Corporate Vice President. "Offering high reliability, HMT is projected to become mainstream technology in the semiconductor field in the near future, and we will partner closely with ASE to make this happen.” With rich portfolios of intellectual property and know-how on HMT technology at ASE and Mitsui High-tec, this agreement provides both companies a strong and mutually beneficial position for this product family while serving customers in this highly dynamic market. Both ASE and Mitsui High-tec have allocated expert engineering resources to expand and enhance HMT’s functionality and leverage its unique advantages to bring even more added value to the IC semiconductor market. Financial terms for the cross-license agreement were not disclosed. About ASE Group The ASE Group is the world's largest provider of independent semiconductor manufacturing services in assembly and test. As a global leader geared towards meeting the industry’s ever growing needs for faster, smaller and higher performance chips, the Group develops and offers a wide portfolio of technology and solutions, including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, system-in-package, final test and electronic manufacturing services through Universal Scientific Industrial Co Ltd, a member of the ASE Group. The Group generated sales revenues of $3.1 billion in 2006 and employs over 28,000 people worldwide. For more information about the ASE Group, visit www.aseglobal.com. About Mitsui High-tec Mitsui High-tec is the world’s largest manufacturer of IC leadframes, with 19 manufacturing bases throughout the world. Mitsui High-tec manufactures precision tool and dies, and provides high quality IC leadframes to global customers based on ultra-precision manufacturing technologies developed since its inception. The company also offers IC assembly & test services, utilizing its in-house leadframes, tooling, jig, equipment and manufacturing technology. Mitsui High-tec satisfies customers’ various needs from development through production, with flexible, short turnaround and low cost solutions. Mitsui High-tec generated consolidated sales revenues of JPY57.4 billion in fiscal 2006 and employs over 3,000 people worldwide. For more information about Mitsui High-tec, visit http://www.mitsui-high-tec.com/. Safe Harbor Notice This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words "anticipate,” "believe,” "estimate,” "expect,” "intend,” "plan” and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor industry; demand for the outsourced semiconductor packaging and testing services we offer and for such outsourced services generally; the highly competitive semiconductor industry; our ability to introduce new packaging, interconnect materials and testing technologies in order to remain competitive; our ability to successfully integrate pending and future mergers and acquisitions; international business activities; our business strategy; general economic and political conditions; possible disruptions in commercial activities caused by natural or human-induced disasters; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2005 Annual Report on Form 20-F filed on June 19, 2006.