SURFACE MOUNT TECHNOLOGY (HOLDINGS) LIMITED

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

The Board of Directors of Surface Mount Technology (Holdings) Limited (the “Company”) wishes to announce that in light of the Company’s current financial and operational circumstances, the Company has appointed Deloitte Touche Tohmatsu in Hong Kong as restructuring advisor to the Company to consider the debt and corporate restructuring of the Company and its subsidiaries (collectively, the “Group”).

The Company has had constructive discussions with the majority of the Group’s bank lenders for a standstill of repayment of amounts due to such lenders. Such discussions are ongoing.

Further to the results guidance announcement dated 20 April 2011 and in view of the current situation and the possible corporate restructuring of the Group, the Company has reassessed the recoverable value of the Group’s property, plant and equipment. As a result of such reassessment, it is expected that the impairment loss for the financial year ended 31 March 2011 will be very substantial. The Company will provide further details when the financial results for the fourth quarter and the full year of FY2011 ended 31

March 2011 are announced, which is expected to be on or prior to 30 May 2011.

The Company wishes to inform all of its shareholders that the Group is carrying on its business operations and activities on a scale appropriate to its current circumstances.

The Company will make further announcements in due course to update all its shareholders of any material developments.

In the meantime, the Board would advise shareholders and the investing public to exercise caution in dealing in the shares of the Company.

By Order of the Board

Woo May Poh

Company Secretary

23 May 2011