Today, and throughout its history, ST has been committed to world class performance. The excellence of its manufacturing machine and the wealth of its intellectual capital are the cornerstones of a vibrant and forward-looking company. Innovation at ST is market-driven and advanced technologies must closely match the reality of customer demand. The alliances ST has forged with leading participants in the global semiconductor industry are of two-fold importance therefore, giving ST access to customer markets and systems know how, while providing these partners with the leading-edge technology necessary for their strategic advantage. ST’s partners include strategic alliances with key customers, technology development alliances with both customers and other chip manufacturers, development alliances with major equipment, materials and CAD suppliers, and partnerships with universities, research institutes and multinational R&D organizations. The Company’s strategic alliances are a source of exceptional financial stability and growth opportunity. ST entered the new century with thirteen strategic alliances of which eight are in the public domain. These include Alcatel and Nortel Networks in the telecom industry; Bosch and Marelli in automotive; Seagate and Western Digital in computer peripherals; and Thomson Multimedia and Pioneer in the consumer sector. For 1999, sales to strategic partners accounted for more than $2.1 billion, or 42% of total revenue. This represents a 25% increase from 1998, which demonstrates the growing value of ST’s strategic alliance model.