Chartered Announces Pricing and Increase in Size of Senior Notes Offering

Chartered Semiconductor Manufacturing(Nasdaq:CHRT)(SGX-ST:CHARTERED) today announced the pricing and anincrease in size of its U.S. public offering of senior notes that waslaunched on July 22, 2005. The offering is part of Chartered's plan tofinance the redemption or repurchase of its US$575 million seniorconvertible notes redeemable in April 2006(1) (the "ExistingConvertible Notes") announced last week. The offering was madepursuant to Chartered's effective shelf registration statement filedwith the U.S. Securities and Exchange Commission (the "SEC"). Theoffering is expected to close on August 3, 2005, subject to customaryclosing conditions.

Chartered increased the total size of the offering from apreviously planned amount of US$450 million to US$625 million. Thesenior notes consist of US$375 million of 5.75% senior notes due 2010(the "Senior Notes due 2010") and US$250 million of 6.375% seniornotes due 2015 (the "Senior Notes due 2015" and, together with theSenior Notes due 2010, the "Senior Notes"). The Senior Notes due 2010will be issued at a price of 98.896% of the principal amount and theSenior Notes due 2015 will be issued at a price of 98.573% of theprincipal amount. The Senior Notes will constitute senior, unsecuredobligations of Chartered. The Senior Notes due 2010 will mature onAugust 3, 2010 and the Senior Notes due 2015 will mature on August 3,2015. Interest on the Senior Notes due 2010 will be payable at therate of 5.75% per annum and interest on the Senior Notes due 2015 willbe payable at the rate of 6.375% per annum, in each case, on February3 and August 3 of each year, beginning on February 3, 2006.

The increased offering size of US$625 million, together with cashon hand, will help the company to fund a cash tender offer (the"Tender Offer") to repurchase all of its Existing Convertible Notes,instead of a maximum tender amount of US$450 million originalprincipal amount of its Existing Convertible Notes as previouslyannounced. The fully accreted redemption amount for the ExistingConvertible Notes at maturity is approximately US$664 million, plusany accrued and unpaid interest. Chartered intends to commence theTender Offer as soon as practicable after the closing of the SeniorNotes offering. The purchase price for the Existing Convertible Notesin the Tender Offer will be subject to market conditions and will bedetermined at the time of its launch.

The financing plan announced on July 22, 2005 consists of a publicoffering of senior notes and a private placement of Units outside theUnited States. The "Units" comprise convertible redeemable preferenceshares due 2010 and amortizing bonds due 2010, and is expected toraise an aggregate amount of US$250 million. The Units privateplacement is conditional upon Chartered's shareholders' approval atthe extraordinary general meeting (the "EGM"), which is scheduled totake place on August 17, 2005, the availability after the EGM of stockborrow of Ordinary Shares customary for a transaction of this nature,and other customary closing conditions. Including the additionalamount of US$175 million that will be raised through the increasedsize of the Senior Notes offering, the total gross proceeds of theSenior Notes offering and the Units private placement are now expectedto be US$875 million. Chartered intends to use any proceeds from theofferings in excess of the amount required to repurchase or redeem theExisting Convertible Notes for working capital and general corporatepurposes, including to repay some of its current debt.

Goldman Sachs (Singapore) Pte. is acting as the Sole GlobalCoordinator, Joint Bookrunner and Joint Lead Manager, Citigroup isacting as a Joint Bookrunner and Joint Lead Manager, and ABN AMRO andBank of America Singapore Limited are acting as Co-Lead Managers forthe Senior Notes offering.

This press release shall not constitute an offer to sell or thesolicitation of an offer to buy nor shall there be any sale of theseSenior Notes in any state in which such offer, solicitation or salewould be unlawful prior to registration or qualification under thesecurities laws of any such state. Our public offering of the SeniorNotes in the United States is being made by means of a prospectus thatwill contain or incorporate by reference detailed information aboutChartered and its management as well as financial statements ofChartered. Copies of such prospectus may be obtained from Chartered at60 Woodlands Industrial Park D, Street Two, Singapore 738406,attention: Investor Relations.

Chartered has not yet commenced the Tender Offer. The Tender Offerwill be made only pursuant to an Offer to Purchase and relatedmaterials that Chartered intends to distribute to holders of theExisting Convertible Notes. Holders of the Existing Convertible Notesshould read carefully the Offer to Purchase and related materials whenthey become available because they will contain important information.Holders of the Existing Convertible Notes and investors may obtain afree copy of the Tender Offer Statement on Schedule TO, the Offer toPurchase and other documents that Chartered intends to file with theSEC (when available) at the SEC's website at www.sec.gov. Thesematerials contain important information and holders of ExistingConvertible Notes are urged to read them carefully prior to making anydecision with respect to the Tender Offer.

About Chartered

Chartered Semiconductor Manufacturing(Nasdaq:CHRT)(SGX:CHARTERED), one of the world's top dedicatedsemiconductor foundries, offers leading-edge technologies down to 90nanometer (nm), enabling today's system-on-chip designs. Charteredfurther serves the needs of customers through its collaborative, jointdevelopment approach on a technology roadmap that extends to 45nm.Chartered's strategy is based on open and comprehensive designenablement solutions, manufacturing enhancement methodologies, and acommitment to flexible sourcing. In Singapore, Chartered operates a300mm fabrication facility and four 200mm facilities.

Unless otherwise specified, references to "US$" are to the lawfulcurrency of the United States of America.

(1)CUSIP No. 16133RAA4; ISIN No. US16133RAA41