Stratech Systems Limited ("Stratech"), an IT systems and technology developer, and e-business enabler providing e-business applications and services, today (July 25, 2000) launched its initial public offer of 66.77 million new shares in connection with its listing on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The listing will be lead managed, underwritten by The Development Bank of Singapore Ltd ("DBS Bank") and co-underwritten by Citicorp Investment Bank (Singapore) Limited.

The total share offer, representing approximately 25% of Stratech's enlarged share capital, comprises a public offer tranche of about 15.6 million shares and a placement tranche of 51.17 million shares.  3.1 million of the placement shares will be reserved for its employees, independent directors, business associates and those who have contributed to Stratech's success.  The remaining placement tranche of 48.07 million shares has also been fully taken up. At S$1.10 per share, the issue is priced at a historical price earnings ratio of approximately 54.5 times.

Stratech will raise about S$55 million from the IPO, excluding expenses.  From the proceeds, Stratech intends to utilise approximately S$17.5 million for future expansion which may include investments and acquisitions of related technologies and/or companies.  Approximately S$10 million will be channelled towards the development of Stratech'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 IT & Life Sciences incubation fund in conjunction with NIF Management Singapore Pte Ltd (a member of the Daiwa Securities group).

About Stratech Systems Limited

An Enterprise 50 winner in 1999, Stratech aims to be a leading e-business and Internet enabler, capable of providing innovative technology-intensive systems solutions for the new economy. As a systems and technology developer, Stratech focuses on two fields: technology-intensive IT (in the areas of 3-D  computer vision and intelligent transport systems) and e-business.  Stratech has developed many of its proprietary products, systems and technologies in these fields, several of them already commercially available, implemented and in use by customers.  Stratech is also investing in the on-going development of several new products, services and technologies in all of these fields.

Stratech's emergence as a leading e-business enabler and provider of large-scale, mission, infrastructure systems received a boost recently when Stratech was awarded the contract to design, develop, implement and operate Singapore's nation-wide electronic open bidding system for motor vehicle Certificates of Entitlement or COEs.