The Center designs innovative System-on-Chip Solutions in advanced nanometric technologies for consumer electronics applications such as cellular phones, cameras and multimedia

Grenoble, December 15, 2006 – STMicroelectronics (NYSE: STM), one of the world’s largest semiconductor suppliers, today announced that it has expanded its Grenoble-based Innovation and Systems Integration Center (CIIS), which is dedicated to System-on-Chip (SoC) solutions.

Located in the heart of the Polygone Scientifique, the Grenoble scientific cluster, CIIS will offer two new facilities covering a total area of 13,000m². This comes on top of the existing 32,000m² of offices, 8,000m² of clean rooms and labs and 1,800m² of test facilities. Designed to accommodate 600 employees, this extension confirms ST’s ongoing commitment to the Grenoble community ever since it first established a presence there in the early 1970s. Today, ST’s Grenoble site is recognized throughout the world as Europe’s foremost integrated circuit (IC) design facility.

One of the main drivers in the region’s microelectronics industry, the site currently employs over 2,300 people, 80% of whom are engineers and managers. At least, 25 different nationalities are represented among multi-disciplinary teams renowned for their world-class expertise. The CIIS is constantly designing new complex ICs dedicated to specific applications such as cellular phones, data networks, computers, digital cameras, HDTV and multimedia. They are designed in state-of-the-art CMOS 90nm or 65nm technologies, developed at ST’s Crolles facility and produced on 300mm wafers.

The CIIS covers the entire product value chain, bringing together at the same site product management teams, marketing, IC hardware and software development and assembly.

The Center’s main areas of expertise are:
The image chain - Engineers design and develop solutions for every step in the image chain: creation, digital processing (camera modules), display and rendering, data storage and transmission-reception (encoding/decoding).

STMicroelectronics develops and produces ICs and complete camera modules with very high resolution (2 MPixels and 3 MPixels - Autofocus) and miniaturization constraints, and is the world’s leading supplier of camera modules for cellular phones with a growth of 40% per year. Since 2005, STMicroelectronics has produced more than 100 million camera modules, and forecasts sustained growth in this segment.

The Center develops ICs for HDTV decoders, video signal processing, digital video recorders/players and display controls (plasma, OLED, LCD, CRT, etc.). Providing demodulator/decoder functionality, these ICs comply with most digital TV standards worldwide, allowing manufacturers and operators to meet all consumer requirements all around the world.

ST is the world’s number one supplier of MPEG (MPEG2, MPEG4, H.264, VC1, etc.,) decoder chips. It is also the leading producer of HDTV decoder chips.

Mobility and connectivity - STMicroelectronics’ CIIS teams in Grenoble played a major role in the architecture and design of the Nomadik platform, a mobile multimedia application processor which enables mobile devices such as cellular phones and personal digital assistants (PDAs) to read audio files, take photos, record video and set up real-time video conversations. Incorporating an innovative architecture based on intelligent accelerators, these processors deliver superior video quality while reducing power consumption and minimizing cost.

As one of the market-leading providers of components for wireless communication, STMicroelectronics offers a global portfolio of solutions for cellular phones, Bluetooth and WiFi.

Convergence and communication - STMicroelectronics aims to facilitate the access to high-definition video in the home by leveraging its dual expertise in high speed technologies and digital decoders. These solutions address the needs of operators by providing multiple services (voice, data, broadband TV, etc.,) as well as the needs of consumers (wireless broadband gateway, digital decoder for on-demand, high-definition video and videotelephony). ST’s teams in Grenoble contribute to the convergence of applications, making them universally accessible.

The CIIS is also actively engaged in several projects underway at the Minalogic competitiveness cluster. These include the EmSoC project to develop Embedded Software on-Chip, and other flagship projects driven by ST’s Imaging Division to develop next-generation miniaturized imaging products.

Finally, together with ST’s Crolles site, the STMicroelectronics’ Innovation and Systems Integration Center fosters very close relationships with other Grenoble-based research facilities (MINATEC, INRIA, Verimag, CEA-Léti, CEA-Liten, CNRS, UJF, INPG and ESRF among others). The Center enjoys a worldwide reputation for excellence among its partners.

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.