STMicroelectronics is one of the world’s largest semiconductor companies with net revenues of US$10.0 billion in 2007.

The Company’s sales are well balanced among the semiconductor industry’s five major high-growth sectors (percentage of ST’s sales in 2007): Communications (37%), Consumer (17%), Computer (16%), Automotive (15%) and Industrial (15%).

According to the latest industry data, ST is the world’s fifth largest semiconductor company with market leadership in many fields. For example, ST is the leading producer of application-specific analog chips and power conversion devices. It is also the #1 supplier of semiconductors for the Industrial market and for set-top box applications, and occupies leading positions in fields as varied as discrete devices, camera modules for mobile phones and automotive integrated circuits.

Product Portfolio
ST aims to be the leader in multimedia convergence applications and power solutions, offering one of the world’s broadest product portfolios, including application-specific products containing a large proprietary IP content and multi-segment products that range from discrete devices to high-performance microcontrollers, secure smart card chips and MEMS (Micro-Electro-Mechanical Systems) devices.

ST pioneered and continues to refine the use of platform-based design methodologies for complex ICs in demanding applications such as mobile multimedia, set-top boxes and computer peripherals. The balanced portfolio approach allows ST to address the needs of all microelectronics users, from global strategic customers for whom ST is the partner of choice, for major System-on-Chip (SoC) projects to local enterprises that need fully-supported general-purpose devices and solutions.

In memories, together with Intel and Francisco Partners, ST has formed and retains 48% ownership of, an independent semiconductor company, Numonyx, which focuses on supplying non-volatile memory solutions for a variety of consumer and industrial devices.

Research & Development and Manufacturing
Since its creation, ST has maintained an unwavering commitment to R&D and is one of the industry’s most innovative companies. ST’s process technology portfolio includes advanced CMOS logic (including embedded memory variants), mixed-signal, analog and power processes. In advanced CMOS, ST is to partner with the IBM consortium for the development of next-generation process technologies, including 32nm and 22nm CMOS process development, design enablement and advanced research adapted to the manufacturing of 300mm silicon wafers. ST and IBM will also cooperate at ST’s Crolles 300mm facility in the development of value-added CMOS derivative SoC technologies.

ST has a worldwide network of front-end (wafer fabrication) and back-end (assembly, packaging and test) plants. The Company is moving towards a less capital-intensive manufacturing strategy and has recently announced plans to phase out some of its older facilities. ST’s principal wafer fabs are presently located in Agrate Brianza and Catania (Italy), Crolles, Rousset and Tours (France), Phoenix and Carrollton (USA) and Singapore.

The wafer fabs are complemented by highly efficient assembly and test facilities located in China, Malaysia, Malta, Morocco and Singapore.

Alliances
ST has developed a worldwide network of strategic alliances, including product development with key customers, technology development with customers and other semiconductor manufacturers, and equipment- and CAD-development alliances with major suppliers. These industrial partnerships are complemented by a wide range of research programs conducted with leading universities and research institutes around the world, in addition to playing a key role in Europe’s advanced technology research programs such as MEDEA+ and industry initiatives such as ENIAC (European Nanoelectronics Initiative Advisory Council).

Sustainable Excellence
STMicroelectronics was one of the first global industrial companies to recognize the importance of environmental responsibility, its initial efforts beginning in the early 1990s. Since then ST has made outstanding progress; for example, energy consumption per product unit was reduced by 47% between 1994 and 2006 and CO2 emissions have been reduced by 61% over the same timescale.  In addition, ST has gone far beyond existing legal requirements in almost completely eliminating the use of hazardous substances such as lead, cadmium, and mercury.  Since 1991, the Company’s sites have received more than 100 awards for excellence in all areas of Corporate Responsibility, from quality to corporate governance, social issues and environmental protection.

Facts and Figures
STMicroelectronics was created in 1987 by the merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France. Since its formation, ST has grown faster than the semiconductor industry as a whole and it has been one of the world’s Top Ten semiconductor suppliers since 1999.

The group totals over 45,000 employees, 16 advanced research and development units, 39 design and application centers, 15 main manufacturing sites and 78 sales offices in 36 countries.

Corporate Headquarters, as well as the headquarters for Europe and for Emerging Markets, are in Geneva. The Company’s U.S. Headquarters are in Carrollton (Texas); those for Asia-Pacific are based in Singapore and Japanese operations are headquartered in Tokyo. The “Greater China” region, which includes Hong Kong, China and Taiwan, is headquartered in Shanghai.

Since December 8, 1994, when ST completed its initial public offering, the Company’s shares have been traded on the New York Stock Exchange (NYSE: STM) and on Euronext Paris; since June 1998, ST has also been listed in Milan on Borsa Italiana. The Company now has around 900 million outstanding shares, 71.1% of which are publicly traded on the various stock exchanges. The balance of the shares is held by STMicroelectronics Holding II B.V. (27.5%), a company whose shareholders are Cassa Depositi e Prestiti and Finmeccanica of Italy, and Areva of France, and treasury shares (1.4%) held by STMicroelectronics NV.

April 2008