CHARTERED SEMICONDUCTOR MANUFACTURING LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of US Dollars) Determined in accordance with US GAAP For The Six Months Ended ------------------------ June 30, June 30, 2006 2007 ------------ --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 34,872 $ (18,425) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in income of associated companies, net (18,117) (16,207) Cash dividends received from SMP 20,683 13,654 Depreciation and amortization 264,401 242,221 Foreign exchange loss, net 2,503 129 Gain on disposal of property, plant and equipment (4,025) (783) Others, net 16,277 5,039 Changes in assets and liabilities: Receivables (38,460) 33,158 Inventories (33,336) (27,105) Other current assets (3,695) (205) Payables and other liabilities 20,952 (5,371) ------------- ---------- Net cash provided by operating activities 262,055 226,105 ------------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (231,507) (455,144) Payments for technology licenses (5,000) (4,362) Refundable deposits placed with a vendor (15,000) - Refund of deposits placed with a vendor 111,656 11 Proceeds from sale of property, plant and equipment 8,659 4,692 Return of capital from SMP 4,133 4,900 Others (544) (1,179) ------------- ---------- Net cash used in investing activities (127,603) (451,082) ------------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Debt Borrowings 493,100 146,115 Repayments (513,548) (86,750) Capital lease payments (2,185) (1,990) Receipts of refundable customer deposits 45,183 - Refund of customer deposits (42,707) (10,550) Issuance of ordinary shares 1,612 1,841 (Increase) decrease in cash restricted for debt repayment (3,593) 32 Others 5,752 (900) ------------- ---------- Net cash (used in) provided by financing activities (16,386) 47,798 ------------- ---------- Effect of exchange rate changes on cash and cash equivalents 20 110 Net increase (decrease) in cash and cash equivalents 118,086 (177,069) Cash and cash equivalents at the beginning of the period 819,856 718,982 ------------- ---------- Cash and cash equivalents at the end of the period $ 937,942 $ 541,913 ============= ==========