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Stratech Systems' Public Offer Tranche 6.97 times subscribed

Stratech Systems Limited ("Stratech"), an IT systems and technology developer, and e-business enabler providing e-business applications and services, today (August 1, 2000) announced that its public offer tranche has been subscribed 6.97 times. Applications of 108,689,000 shares, amounting to S$119.6 million, were received for the 15.6 million offer shares available to the public when the offer closed at 12 noon yesterday (Monday, July 31, 2000).

The total Invitation Shares of 66.77 million, representing approximately 25% of Stratech's enlarged share capital, comprised of a public offer tranche of about 15.6 million shares and a placement tranche of 48.07 million Placement Shares and 3.1 million Reserved Shares. Of the 3,100,000 Reserved Shares, 2,276,000 shares were taken up by independent directors, employees, business associates and those who have contributed to the success of the Company. The balance of 824,000 Reserved Shares have been re-allocated to satisfy applications for Placement Shares.

Of the 48.07 million Placement shares and 824,000 Reserved shares (as above), a total of 48.79 million was successfully subscribed for and /or purchased. Accordingly, the balance of 104,000 Placement Shares, resulting from invalid applications were included as Offer Shares for the public.

Said Dr David Chew, Chairman and Chief Executive of Stratech, "Given the size of our public offer tranche and the current weak market sentiments, especially in the technology sector, the response from the public is a clear endorsement of Stratech's strong growth potential. It is now our mission to deliver world class products and place Stratech Systems on the Technology map of the world."

The Board of Directors of Stratech Systems Limited decided on the following basis of allotment :


Range of Offer Shares Applied for ('000) Balloting ratio

No of Offer Shares allotted per successful application ('000) Percentage of total no of Offer Shares available to the public (%)

No of successful applicants

(rounded)

1 12 : 20 1 21.44 3,367
2 to 9
13 : 20
2
37.00
2,905
10 to 49
14 : 20
3 25.96 1,359
50 to 99 15 : 20 5 7.07 222
100 to 499 15 : 20 6 6.95 182
500 to 999 15 : 20 8 1.07 21
1,000 and above 15 : 20 10 0.51 8
Total     100 % 8,064

Of the nett proceeds of about S$55 million from the IPO, the Company intends to utilise S$17.5 million for future expansion which may include acquisition of related technologies and/or companies. Another S$10 million will be channelled towards the development of the Group's e-Business ventures, while approximately S$19 million will be used to fund research and development of new products and/or for working capital. The balance of approximately S$8.5 million will be invested in a proposed incubation fund with NIF Management Singapore Pte Ltd (a member of Daiwa Securities).