GEM News Release

GEM Services, a Contract Electronics Service Provider, Incorporates in
Cayman Islands

Redwood City, California, April 17, 1998 — In a move to create a truly international electronics manufacturing service company, GEM Services management today announced the incorporation of GEM Services, Inc., a Cayman Islands holding company. GEM Services USA, Inc., headquartered in Redwood, City, California, is a wholly owned subsidiary of GEM Services, Inc.

GEM Services is initially focusing on conventional semiconductor turnkey packaging, providing high-quality, low-cost semiconductor assembly and test services through partnerships in Taiwan. The Company plans to rapidly expand its services through internal growth, partnerships, strategic alliances, joint ventures, and acquisitions.

According to Dataquest and Frost & Sullivan, the semiconductor contract assembly and test market is projected to grow at 20% CAGR from $6 billion in 1997 to $12.5 billion in 2001. Based on the semiconductor manufacturers’ trend toward out-sourcing backend manufacturing and GEM’s market knowledge, operations expertise, and relationships within the semiconductor industry, Company executives believe GEM Services will greatly exceed the projected CAGR over the next five years.

The management team at GEM Services has a proven track record in the semiconductor industry. President and CEO Richard J. Kulle (a veteran of General Electric, Siliconix, and Temic Semiconductors’ Discrete Components Division of Daimler-Benz) led the turnaround of Siliconix, Inc. from Chapter 11 insolvency in 1990 to profitability within two years. Kulle has vast experience in international semiconductor operations, having set up fabrication, assembly, and test facilities in Asia, North America, and Europe.
GEM Services, Inc. is a privately held company with headquarters in Redwood City, California.

GEM Services, Inc. is a privately held company incorporated in the Cayman Islands with three wholly-owned subsidiaries: GEM Services USA in North America, GEM Electronics, Inc. in Taiwan, and GEM Services Hong Kong, Ltd., which owns the subsidiary, GEM Electronics Shanghai Co., Ltd.