STMicroelectronics is a global, independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive prod-ucts and industrial automation and control systems.

We are the world's leading supplier of MPEG-2 decoder ICs, digital set-top box ICs and EPROM non-volatile memories, and also the second leading supplier of analog and mixed-signal ICs, disk drive ICs, Smartcard ICs and EEPROM memories.

Each year, we invest significantly in R&D and capital expenditures. In 2001, we spent US$977.9 million (15.4% of revenues) in research and development, filing 636 patent applications and maintaining our track record as one of the industry's most prolific inven-tors across a wide range of technologies, products and applications. With 66 percent of our revenue coming from differentiated products, we currently provide more than 3,000 main types of products to many of the industry's most important players, including Alcatel, Bosch, DaimlerChrysler, Ford, Hewlett-Packard, IBM, Marelli, Motorola, Nokia, Nortel Networks, Philips, Pioneer, Seagate Technology, Siemens, Sony, Thomson Multimedia and Western Digital.

Our company was formed in June 1987 as a result of the merger between SGS Microelettronica of Italy and Thomson Semiconducteurs of France. On December 8, 1994, we completed our initial public offering, and have since been quoted on the New York Stock Exchange (NYSE: STM) and on Euronext Paris. Since June 1998, we have also been listed in Milan on Borsa Italiana. We have nearly 900 million issued and outstanding shares, approximately 64% of which are publicly traded. The balance of the shares is held by STMicroelectronics Holding II B.V., a company whose shareholders are Finmeccanica of Italy and a French consortium comprising Areva and France Telecom.

We now directly employ 40,000 people, working at 12 advanced research and develop-ment units, 32 design and application centers, 18 manufacturing sites and 74 sales offices in 27 countries.