Vietnamese Technology Company FPT Corporation Announces Landmark US$36.5 Million Investment from TPG and Intel Capital

Market growth and pro-reform initiatives make Vietnam an increasingly attractive investment

HANOI, Vietnam--()--FPT Corporation, a leading information and communications technology (ICT) provider in Vietnam, today announced it issued new shares to private equity firm Texas Pacific Group (TPG) and Intel Capital, the venture capital organization of Intel Corporation.

Under the terms of the agreement, FPT received a total investment of US$36.5 million, from TPG, through its TPG Ventures fund, and Intel Capital. This marks one of the largest cross-border investments into Vietnam by leading global investment firms, underlining the long-term confidence that institutional investors have in the country.

FPT is already an information-communications technology leader in Vietnam. We intend to leverage the capabilities and financing from leading investors TPG and Intel Capital to enter new business lines and to expand internationally, said Truong Gia Binh, CEO of FPT. This is a landmark occasion for both Vietnam and FPT. We believe this deal underscores the potential and capabilities within Vietnam and is a milestone in the countrys efforts towards joining the WTO.

FPT reported 2005 revenues of more than US$517 million, and revenue growth averaging 70 percent annually over the past five years, making it one of the largest private technology companies in Vietnam by revenue. FPT leads the industry in terms of sales or subscribers in many of its business lines in Vietnam, which include mobile distribution, systems integration, software services, telecom, Internet and e-media content. FPT also reports 28,000 students enrolled in its technological training academies throughout the country, since 1999.

With the infusion of capital and global expertise from the investment firms, FPT intends to explore new product and services lines. The company, which is already a software-development services provider to Japan, also will have increased capability to expand its products and services to other geographies. Additionally, Vivek Paul, a partner with TPG, will serve as Special Strategic Advisor to FPT, bringing his global technology industry experience and leadership to help FPT achieve its global ambitions.

Sing Wang, a partner with TPG based in Hong Kong, said, This is a historic deal for TPG in Vietnam, which is an increasingly enticing destination for outsourced services and foreign investment. Tim Dattels, also a partner with TPG, added, In partnering with FPT, we are joining with Vietnams national champion in the ICT industry.

Arvind Sodhani, President of Intel Capital, said, Our investment in FPT reflects Intel Capitals global presence and reach in emerging markets, and is a testament to our continuing efforts to encourage entrepreneurship and technology innovation worldwide. We see strong prospects for Vietnams IT sector and look forward to making a contribution to Vietnams success through support of fast-growing companies, such as FPT.

TPGs Paul said Vietnam has the second-highest annual GDP growth rate in Asia-Pacific, behind only China, a literacy rate of over 96 percent, a rapidly growing middle class, and a government committed to economic reform. These are all key building blocks that allow a country to compete globally.

At nearly US$50 billion, the GDP of Vietnam has averaged 7.5 percent annual growth since 2001, with a high of 8.4 percent last year. According to research by investment bank NM Rothschild & Sons, Ltd., the advisor on the deal, exports between January and July of this year topped US$22 billion, a year-over-year increase of 25 percent; foreign direct investment into the country reached US$5.8 billion last year, a 37 percent increase over 2004.

Varun Kapur, managing director, Intel Capital Asia Pacific, added, This first-of-its-kind investment is a milestone for Vietnam, and reflects Intel Capitals confidence in the market and its business climate. Venture investing has the potential to contribute significantly to the growth of Vietnams IT industry.

This deal highlights the core investment strategies of both TPG Ventures and Intel Capital, which support profitable and innovative enterprises with solid management teams that are well positioned in their respective fields. The ICT market in Vietnam has been growing 20 percent annually and is valued at over US$800 million, according to research by Rothschild. The number of Internet users in Vietnam is predicted to climb to nearly 13 million this year from only 500,000 in 2000. The number of Internet and mobile phone users in Vietnam is growing the fastest of any country in Asia-Pacific. The countrys mobile subscribers are increasing at nearly 63 percent each year.

About FPT

FPT Corporation is Vietnams largest information and communication technology company. FPT is the Vietnamese market leader in mobile distribution, systems integration, software outsourcing and development, telecom, Internet and e-media content, and computer assembly. International technology partners include IBM, Oracle, Microsoft, Cisco System, and Intel. FPT is also a leader in technological training having enrolled 28,000 since 1999 in its tech academies throughout the country. Established in 1988, FPT employs the largest number of informatics engineers and specialists in the country. The company has 6,000 employees. Visit http://www.fpt.com.vn for more detailed information.

About TPG

TPG is a private investment partnership that was founded in 1992 and currently has more than US$30 billion of assets under management. With offices in San Francisco, London, Hong Kong, Fort Worth and other locations globally, TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG was one of the first private equity firms dedicated to the Asia region through its investment arm TPG Newbridge. The firm seeks to invest in world-class franchises across a range of industries including technology (Lenovo, MEMC, Seagate), industrials (Altivity Packaging, British Vita, Grohe, Kraton Polymers, Texas Genco), retail/consumer (Debenhams, Ducati, J. Crew, Myer Department Stores, Neiman Marcus, Petco), airlines (America West, Continental), media and communications (Findexa, Hanaro Telecom, MGM, TIM Hellas), financial services and banking (Endurance Specialty Holdings, Fidelity National Information Services, LPL Financial Services, Shenzhen Development Bank) and healthcare/pharmaceutical (IASIS Healthcare, Matrix Laboratories, Oxford Health Plans, Parkway Holdings, Quintiles Transnational), among others. Visit www.texaspacificgroup.com, www.tpgventures.com and www.newbridgecapital.com.

About Intel Capital

Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$6 billion in nearly 1,000 companies in more than 40 countries. In that time, about 180 portfolio companies have been acquired by other companies and another 155 have gone public on various exchanges around the world. In 2005, Intel Capital invested about US$265 million in about 140 deals with approximately 60 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.

Contacts

Media:
FPT Corporation
Quan Nguyen Anh
Vice Corporate Communications Manager
Mobile: +84 98 966 3042
Office: +84 7712760/ext. 168
quanna3@fpt.com.vn
or
Intel
Hong Kong:
Intel Corp., Asia Pacific
Nick Jacobs
Corporate Communications Manager
Mobile: +65 9835 6212
Office: +65 6213 1294
nick.jacobs@intel.com
or
Vietnam:
Intel Corp., Vietnam
Linh Vu Kieu
Mobile: +84 903286466
linh.vu.kieu@intel.com
or
TPG
Asia:
Gutenberg Communications, LLC
Harjiv Singh, +1-212-239-8596
Harjiv@gutenbergpr.com
or
U.S.:
Owen Blicksilver PR, Inc.
Lisa Baker, +1-914-725-5949
lisa@blicksilverpr.com

Contacts

Media:
FPT Corporation
Quan Nguyen Anh
Vice Corporate Communications Manager
Mobile: +84 98 966 3042
Office: +84 7712760/ext. 168
quanna3@fpt.com.vn
or
Intel
Hong Kong:
Intel Corp., Asia Pacific
Nick Jacobs
Corporate Communications Manager
Mobile: +65 9835 6212
Office: +65 6213 1294
nick.jacobs@intel.com
or
Vietnam:
Intel Corp., Vietnam
Linh Vu Kieu
Mobile: +84 903286466
linh.vu.kieu@intel.com
or
TPG
Asia:
Gutenberg Communications, LLC
Harjiv Singh, +1-212-239-8596
Harjiv@gutenbergpr.com
or
U.S.:
Owen Blicksilver PR, Inc.
Lisa Baker, +1-914-725-5949
lisa@blicksilverpr.com