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Geneva, June 8, 2004 - STMicroelectronics
(NYSE: STM) announced that the Company will redeem all of its remaining
outstanding Zero Coupon Senior Convertible Bonds due 2010 (the "2010
Bonds") on July 9, 2004 at a redemption price equal to $789.76 per $1,000
principal amount. The redemption price is comprised of $689.68 principal
amount at issuance plus the accrued original issue discount calculated
through the date of the redemption of $100.08.
To date, ST has repurchased a nominal amount of $1,980,330,000 of its
2010 Bonds, representing 92.28% of the total amount of 2010 Bonds issued.
The residual nominal amount of the currently outstanding 2010 Bonds
is $165,593,000. Unless the Company defaults on payment of the redemption
price, the original issue discount on the remaining outstanding 2010
Bonds, if any, will cease to accrue on and after July 9, 2004, the redemption
date. The 2010 Bonds may continue to be converted at any time before
the close of business on July 9, 2004. Today's applicable conversion
rate is 9.320 ST common shares per $1,000 principal amount. Based on
the amount outstanding, if all the remaining holders of the 2010 Bonds
choose to convert their 2010 Bonds into common shares before July 9,
2004, 1,543,326 ST common shares would be issued.
A notice of redemption is being mailed to all registered holders of
the 2010 Bonds.
To redeem the 2010 Bonds, or receive further information concerning
this redemption, please contact:
| Trustee, New York Registrar, New York Paying and Conversion Agent: |
Paris Paying and Conversion Agent |
Dutch Registrar |
| The Bank of New York 101 Barclay Street Floor 21 West New York,
New York 10286 |
BNP Paribas 16 boulevard des Italiens 75009 Paris, France |
Netherlands Management Company B.V. Herengracht 320 1016 CE Amsterdam
The Netherlands |
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering
semiconductor solutions across the spectrum of microelectronics applications.
An unrivalled combination of silicon and system expertise, manufacturing
strength, Intellectual Property (IP) portfolio and strategic partners
positions the Company at the forefront of System-on-Chip (SoC) technology
and its products play a key role in enabling today's convergence markets.
The Company's shares are traded on the New York Stock Exchange, on Euronext
Paris and on the Milan Stock Exchange. In 2003, the Company's net revenues
were $7.24 billion and net earnings were $253 million. Further information
on ST can be found at www.st.com.
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