Report scope and profile

This is a report of how responsibly we have performed as a company in the calendar year 2005, and covers all STMicroelectronics NV’s (ST's) activities and sites, unless otherwise stated. You can find details about ST's size, structure, ownership and countries of operation plus reports from previous years elsewhere on www.st.com.

This report is in accordance with the 2002 Global Reporting Initiative (GRI) Guidelines, although this year we also referred to the draft G3 Guidelines that were released for public comment between January and March 2006. Where relevant, we have also used our own company indicators to give a complete and accurate picture of our performance. These are all prefixed 'ST' and shown in black italics. We have identified a number of Key Performance Indicators (KPIs), which are shown as .

All KPIs have been verified and validated by Bureau Veritas Quality International, France.

This report contains comments from our assurance provider for corporate responsibility management systems, Reassurance Network, taken from their Management Review report.

ST’s Environmental and Health and Safety Decalogue targets are also included throughout the report and denoted with §.

This report also contains an index of all indicators used and details of our verification processes. We explain methodologies used for measuring specific aspects of performance in the relevant sections. We also provide a glossary explaining acronyms and abbreviations.

We are committed to improving both our corporate responsibility performance and the ways we communicate this to our stakeholders. We encourage contributions and debate from all stakeholders, and welcome feedback on the content and presentation of this report – as well as suggestions for next year.

Company profile

STMicroelectronics was created in 1987 by the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France with the aim of becoming a world leader in the sub-micron era. ST has grown faster than the semiconductor industry as a whole and it has been one of the world’s top 10 semiconductor suppliers since 1996. Today, an unrivalled combination of silicon and system expertise, manufacturing strength and efficiency, intellectual property portfolio, strategic industrial and academic partnerships, and one of the industry’s broadest product ranges makes ST a world leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. For more detailed company information, including our market position, product portfolio and shareholding structure, please visit our Company Profile.

EC7: ST key figures 2005
ST1: Net revenues	$US8,882m
ST3: Net earnings	$US266m
ST2: Gross profit	$US3,037m
ST4: Earnings per share 2005	$US0.29
ST5: Gross profit as a percentage of sales	34.2%
ST6: Market share (sales divided by Total Available Market) 50,033 employees 16 advanced research and development units 39 design and application centers 16 main manufacturing sites 78 sales offices in 36 countries.	3.9%