Only the defense value goes up. The Intellect/Discipline/Strength does not not change. However, you can use Glass Needles to "re-roll" the properties of exotic armor. Hope this helps out!
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No just tested it on a helm that was at 287 upped it 5 defense got 2 points both stats. Derp.
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That would be the most moronic system for gear in the world if that is true.