Geneva, June 29, 2004 - STMicroelectronics (NYSE: STM) today announced that Pasquale Pistorio, the Company's President and Chief Executive Officer, has accepted the challenge of chairing the Technology Platform group of a new European initiative called ENIAC (European Nanoelectronics Initiative Advisory Council), in which leading European players in the micro- and nanoelectronics field will work together to develop and implement a coherent European vision for the coming nanoelectronics era.

The mission of the ENIAC program is to put in place the recommendations of a comprehensive report entitled "Vision 2020: Nanoelectronics at the centre of change". The report, which results from the work of a high level group of executives from leading industries and research organizations, supported by European Commission services, was disclosed today in Brussels by European Research Commissioner Philippe Busquin and Enterprise and Information Society Commissioner Erkki Liikanen. The report predicts that the progress of nanoelectronics will continue for at least another 15 years, and will give rise to another revolution in the number of applications enabled by this technology. ENIAC's goals include supporting public and private R&D investments in nanotechnology and the development of a common European vision for the next era of an increasingly knowledge-based world economy.

"Electronics is one of the world's most important industries. We can be proud of the contribution European companies have made to microelectronics, which is the enabling technology for all worldwide electronics industries," said Mr. Pistorio. "Now we need to join forces to address the long-term challenges of a new nanotechnology era. This cooperation will provide a strategic framework in which all European public and private enterprises will be able to work effectively together to contribute to the development of this new age and will reinforce Europe's position as a key player in the global economy."

The appointment of Mr. Pistorio to this key European post reflects the recognition of the success that ST, one of the world's largest global semiconductor manufacturers, has achieved in working with partners. "ST has both a long and winning track record in federating expertise from around the world, beginning with our highly effective joint development programs with strategic partners, including not only customers, but also suppliers and competitors. In addition to this, our contributions to European R&D programs such as JESSI, MEDEA and now MEDEA+, and our advanced R&D relationships with many of the world's most prestigious universities and research institutes, make us fully confident that ST can offer a vital contribution in turning this new European initiative into a truly world-class success," noted Pistorio.

Advances in microelectronics technology have driven the creation and expansion of whole markets such as PCs, mobile phones and digital cameras. A key factor in the development of these markets has been the ability of chip manufacturers such as ST to deliver integrated circuit solutions that have increasingly incorporated more and more of the electronic circuitry in a silicon chip that is about the size of a human fingernail. Each new generation of silicon chip technology makes the resulting devices cheaper, faster and less power-consuming but the companies that provide these enabling technologies also know that they will have to address many new technical challenges as device dimensions shrink from the micrometer (one millionth of a meter) to the nanometer (one thousandth of a micrometer) scale.

STMicroelectronics spends approximately $1 billion each year on R&D programs that not only push existing microelectronics technologies to new limits but also make these new technologies manufacturable on a large scale. In the nanotechnology field, ST is working on the development of many exciting new technologies, including highly efficient solar cells that could reduce the world's dependency on fossil fuels, new types of memories and displays that utilize the properties of organic molecules, and nanoscale technologies for medical diagnosis and treatments.

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.