Creates Stand-alone Flash Memory Unit

Geneva, December 13, 2006 - STMicroelectronics (NYSE: STM) announced plans to reorganize its product segments into three main areas. Under the new structure, which divides the Company’s products into Application Specific Groups, a Flash Memory Group and the Industrial and Multisegment Sector, ST’s organizations are aligned to meet the requirements of the market, while preparing the Company for strategic repositioning in Flash memory. The reorganization takes effect on January 1, 2007.

“We are progressing in our efforts to pursue industry consolidation and financial deconsolidation in Flash memory devices,” said Carlo Bozotti, President and CEO of ST. “This significant move, in combination with the reorganization of Application Specific Groups and creation of the Industrial & Multisegment Sector, enable ST to better address opportunities in the industry’s fastest growing markets.”

ST is establishing a stand-alone Flash Memories Group (FMG), which incorporates all the Flash memory operations, including Technology R&D, all product related activities, front-end and back-end manufacturing, marketing and sales worldwide. FMG will be led by Mario Licciardello, Corporate Vice President and General Manager.

Furthermore, in order to provide a more synergistic contribution to the Company’s product requirement, ST is adding to the former MPA business its non-Flash memory products – formerly under MPG – and its Micro-Electro-Mechanical Systems (MEMS) activity, to form a new sector, called Industrial & Multisegment Sector (IMS). Carmelo Papa, who is being promoted to Executive Vice President, will lead the Industrial & Multisegment Sector. Within IMS, a new Group, the Microcontrollers, Memories & Smartcards Group (MMS), is created under the leadership of new Corporate VP Claude Dardanne.

Finally, keeping the same overall perimeter, ST’s Application Specific Groups (ASG) will now be comprised of the newly created Mobile, Multimedia & Communications Group (MMC) and the Home Entertainment & Displays Group (HED) as well as the existing Automotive Product Group (APG) and Computer Peripherals Group (CPG). In connection with these changes, Tommi Uhari is being promoted to Executive Vice President and will lead the Mobile, Multimedia & Communications Group and Christos Lagomichos is being promoted to Corporate Vice President for the Home Entertainment & Displays Group. The Automotive Products Group and Computer Peripherals Group will continue to be managed by Corporate Vice Presidents Ugo Carena and Gian Luca Bertino, respectively.

EXECUTIVE BIOGRAPHIES
Gian Luca Bertino was born in Ivrea (Italy) in 1960. He graduated from the Polytechnic of Turin with a degree in Electronic Engineering. He joined ST in 1997 and rose through the Computer and Consumer Business Unit to Region Vice President. In January 2003, was promoted to Vice President of the Data Storage Division. Following ST's reorganization in early 2005, Bertino was promoted to Corporate Vice President responsible for the Computer Peripherals Group.

Ugo Carena was born in Ivrea (Italy) in 1944 and graduated from the Polytechnic of Turin with a degree in Mechanical Engineering. He joined SGS-THOMSON Microelectronics (now STMicroelectronics) in 1997 and worked in the Printer division. In 2003, Carena was promoted to Vice President, where he led the development of key Intellectual Property. He took charge of the Automotive Product Group as a Corporate Vice President in January 2005.

Claude Dardanne was born in Bourganeuf, near Limoges, France in 1952 and has a degree in Electronic Engineering. He has 25 years' experience in the semiconductor industry and spent 10 years with Thomson Semiconducteurs before moving to Apple Computer, then Alcatel-Mietec. He joined ST in 1994 and following a steady rise through the organization, was promoted to Deputy General Manager, Memory Products Group in January, 2005

Christos Lagomichos was born in Pierias, Greece, in 1955. He graduated in electronic engineering from the Technical University of Munich in 1981. He joined ST in 1985 following a stay at Siemens, where he worked as a design engineer. Lagomichos has held a variety of engineering and marketing positions in semicustom products at ST before his promotion to Vice President and General Manager of the Home Entertainment Group in 2004.

Mario Licciardello was born in Catania, Italy in 1942. He graduated with a degree in physics from the University of Catania in 1964. He joined SGS-ATES, a forerunner company of ST, in 1965, initially in process development, then in strategic planning. Mario moved to the Memory Products Group (MPG) in 1993 and in 2003 was promoted to Deputy General Manager of MPG. In January 2005, he was promoted to Corporate Vice President of MPG.

Carmelo Papa was born in 1949 in Castiglione di Sicilia, near Catania, Italy, where he graduated with a degree in nuclear physics. His career in semiconductors began in 1983 when he joined SGS Microelettronica (a forerunner company of STMicroelectronics). He was appointed ST's Corporate Vice President, Emerging Markets in January 2000 and in January 2005, Carmelo Papa was assigned to head ST’s Micro, Power, Analog Group (MPA).

Tommi Uhari was born in Tampere, Finland in 1971. He has a Master's degree in Industrial Engineering and Management and worked at Nokia from 1993 to 2006 in various R&D and management positions, where he was ultimately Vice President, Head of Wireless platforms for Nokia’s terminal products. Tommi Uhari joined STMicroelectronics in 2006 as Manager of the Personal Multimedia Group (PMG).

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 2005, the Company's net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at www.st.com.