SURFACE MOUNT TECHNOLOGY (HOLDINGS) LIMITED

Company Registration No.: 29080 (Incorporated in Bermuda with limited liability)

The Board of Directors (the "Board") of Surface Mount Technology (Holdings) Limited (the "Company") refers to the announcement made by the Company on SGXNet on 28 May 2011, where it was disclosed that the Company has embarked on a plan of reorganisation (the "Corporate Reorganisation") of the Company and its subsidiaries (the "Group").

Pursuant to the Corporate Reorganisation, the Company is pleased to announce that it has entered into exclusive negotiations with a potential investor for a restructuring proposal for the Group. The Company will make further announcements in due course when definitive agreements have been entered into, and will update all its shareholders of any other material developments in connection with the Corporate Reorganisation.

In the meantime, shareholders are advised to exercise caution in trading their shares and to refrain from taking any action in relation to their shares which may be prejudicial to their interests.

By Order of the Board

Woo May Poh

Company Secretary

4 August 2011