ST Engineering's US Subsidiary Invests In A Canadian Company For R&D

(Singapore, 24 November, 2006) -- Singapore Technologies Engineering Ltd (ST Engineering) today announced that its US company, Vision Technologies Systems, Inc. (VTS), has acquired 49% of the common stock of 1699590 Ontario Inc for US$250 through its wholly-owned subsidiary, iDirect Inc (iDirect). In addition, iDirect has exercised its right to purchase 80,000 Class A non-voting preferred shares, at an exercise price of US$1.00 per share. 1699590 Ontario Inc will be renamed iDirect Canada Inc (iDirect Canada). The stake is being acquired from the company's three founding shareholders, Mr John Clarke, Mr Aneesh Dalvi and Mr Michael Carter (Founders) who will retain 51% stake in the company. Consequent to this acquisition, iDirect Canada has now become an associated company of ST Engineering.

These investment terms were arrived at between iDirect and the Founders on a willing buyer, willing seller basis, after negotiations between the parties. The acquisition is not expected to have any material impact on the consolidated earnings per share of ST Engineering for the current financial year.

iDirect Canada has expertise in modem design and broadband IP transport down to the chip level design. This acquisition brings new capacity for research and development for the next generation remote Internet access system. The new organisation will provide iDirect additional resources to develop and integrate new transport technologies which will increase the platform's network efficiency and flexibility. Canada also offers readily available engineering expertise with the right skill-sets in this sector as well as attractive development incentives provided by its government.

Source : Singapore Technologies Engineering Ltd

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