Mellon HBV Comments on ASM International's Decision to No Longer Use ASM PT Dividend to Fund Its Front End Business

Mellon HBV Alternative Strategies (HBV) today issued the following statement in response to ASM International’s (NASDAQ: ASMI and Euronext Amsterdam: ASM) announcement that the Company will stop using dividends from its 54% stake in ASM Pacific Technology (ASM PT) to fund its front end business. "We are pleased to see that our efforts have resulted in, among other things, the removal of the cross-subsidization between ASMI's front-end activities and its investment in ASM PT and believe today’s announcement is a step in the right direction. We are also pleased with the announcement of improved reporting policy with regards to the performance of the front end business, as well as ASMI’s commitment to give alternative strategies appropriate consideration. However, we believe there remains more to be done and that only the structural solution of a split would solve the significant valuation gap that exists. We also continue to believe that, given its deviations from the corporate governance code and the absence of appropriate outside shareholders representation on the supervisory board, ASMI does not meet the criteria in the eyes of the market to act as a qualified custodian for its EUR 850 million ASM PT investment -- and we remain committed to our efforts to rectify these shortcomings.” Mellon HBV Alternative Strategies is a registered investment adviser and a wholly-owned alternative investment management subsidiary of Mellon Financial Corporation, with offices in New York and London and a research team based in Hong Kong. Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing asset management, private wealth management, asset servicing, payment solutions and investor services. Mellon has approximately $5.3 trillion in assets under management, administration or custody, including $918 billion under management. News and other information about Mellon is available at www.mellon.com.