STATS ChipPAC settles litigation with Tessera

This agreement results in the dismissal of all claims and counterclaims between Tessera, Inc. and STATS ChipPAC and its subsidiaries STATS ChipPAC, Inc. and STATS ChipPAC (BVI) Limited and ends the patent litigation between the companies. In October 2012, the United States District Court for the Northern District of California granted the parties' stipulated dismissal of the breach of license claims and counterclaims, so that this agreement ends all outstanding litigation between the parties. The agreement also provides STATS ChipPAC and its subsidiaries with a 5-year license to Tessera Inc.'s complete patent portfolio for semiconductor packaging technology. As a result of the agreement, STATS ChipPAC expects adjusted EBITDA to be approximately 21% of revenue. Capital expenditure is expected to be approximately $55 million in the fourth quarter of 2012. Excluding the agreement, adjusted EBITDA would have been within the previous outlook guidance (25% to 26%) issued on 4 January 2013.