STMicroelectronics is a global independent semiconductor company and is a leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivaled 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 trends.

ST is one of the world's largest semiconductor companies. In 2003, ST's net revenues were US$7.24 billion and net earnings were US$253 million.
For the first half of 2004, ST's net revenue's were US$4.2 billion and net earnings were US$225 million.

According to the most recent data from independent sources, ST is the world's leading supplier of application-specific analog ICs overall with number one rankings in various segments within this field, including wireless ASICs, computer peripheral ASICs and automotive ASSPs. ST is also the leader in MPEG-2 decoder ICs, and ASICs/ASSPs overall, including a number one position in digital consumer ASSPs. Additionally, ST is ranked at number three for discrete products, and in the memory market, ST is ranked fourth in NOR Flash ICs. In application segments overall: ST is number one for ICs in set-top boxes; at number two in smart cards, and also in xDSL chips; at number three in automotive; and at number four in wireless.

The Company's products are manufactured and designed using a broad range of fabrication processes and proprietary design methods. To complement this depth and diversity of process and design technology, the Company also possesses a broad intellectual property portfolio that it has used to enter into cross-licensing agreements with many other leading semiconductor manufacturers.

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. By augmenting its rich portfolio of proprietary technologies and core competencies with complementary expertise from a variety of carefully chosen strategic partners, ST has developed an unsurpassed capability to offer leading-edge solutions to customers in all segments of the electronics industry.

The Company currently offers over 3,000 main types of products to more than 1,500 customers, including Alcatel, Bosch, DaimlerChrysler, Ford, Hewlett-Packard, IBM, Motorola, Nokia, Nortel Networks, Philips, Seagate Technology, Siemens, Sony, Thomson and Western Digital. Approximately two-thirds of ST's revenue is derived from differentiated products, a combination of dedicated, semi-custom and programmable products designed to suit a specific customer or a specific application and therefore having a high system content.

This result reflects ST's exceptionally early recognition of the importance of system-on-chip technology, which is key for addressing the fast growing market for convergence products, and the success of the strategies it developed to ensure its leading position in this key emerging field.

The ST group was formed in June 1987 as a result of the merger between SGS Microelettronica of Italy and Thomson Semiconducteurs of France. In May 1998, the company changed its name from SGS-THOMSON Microelectronics to STMicroelectronics.

Since its formation, the Company has significantly broadened and upgraded its range of products and technologies and has strengthened its manufacturing and distribution capabilities in Europe, North America, and the Asia Pacific region. This capacity expansion is an ongoing process with the upgrading of existing facilities and the creation of new 8-inch, sub-micron fabs around the world. ST currently has five 8-inch fabs in operation in: Rousset (France); Agrate Brianza, R2 (Italy); Crolles (France); Phoenix (Arizona); Catania (Italy); and Singapore. Furthermore, a new 12-inch manufacturing facility is currently under construction in Catania; and the company is now ramping up production from a 12-inch pilot line called Crolles2, in partnership with the semiconductor arms of Philips and Motorola. The Crolles2 operation is also host to the joint development program between the three companies to develop leading-edge CMOS process technology down to the 32nm node, in conjunction with TSMC for process alignment.

The group totals more than 45,000 employees, 16 advanced research and development units, 39 design and application centers, 17 main manufacturing sites and 88 sales offices in 31 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 (Dallas, Texas); those for Asia/Pacific are based in Singapore; and Japanese operations are headquartered in Tokyo.

To guarantee continued technological development and consistently offer customers true leading-edge products, ST each year invests a significant proportion of its sales in R&D and capital expenditures. ST has maintained an average R&D spend of more than 16% of revenue over the last three years, and an average of more than 13% of revenue from the date of the company's creation, compared to an industry average of less than 11%. In 2003, ST spent approximately US$1.2 billion in R&D, which was slightly more than 17% of its 2003 revenues. Additionally, ST filed 663 patent applications in 2003, maintaining its track record as one of the industry's most prolific inventors. The new inventions protected with these filings covered a wide range of technologies, products and applications, in line with the broad range supplier mission of the Company. ST is also active in numerous collaborative research projects worldwide as well as playing a key role in Europe's advanced technology research programs such as MEDEA+, and its predecessors, MEDEA and JESSI.

ST's technical, marketing and manufacturing strengths are matched and further enhanced by an unswerving commitment to Total Quality and Environmental Management (TQEM) that has earned prestigious awards around the world. Since 1991, the Company's sites have received more than 70 awards, of which more than 40 were for environmental issues.

In addition to ST's previous honors for quality over the last few years - which include the Malaysian Prime Minister Quality Award, the Malta Quality Award and the European Quality Award - STMicroelectronics Asia Pacific was the winner of the 1999 Singapore Quality Award for Business Excellence; and the Company's US subsidiary STMicroelectronics Inc, was awarded the 1999 Malcolm Baldrige National Quality Award, the highest level of national recognition for quality that a US company can receive. And in 2000, ST's Moroccan operations received the Morocco National Quality Award.

ST's commitment to environmental responsibility has resulted in substantial reductions in the consumption of energy, water, paper and hazardous chemicals, increased recycling of waste products and a significant cut in CO2 emissions. In 1999, ST received the United States Environmental Protection Agency's Climate Protection Award for its outstanding accomplishments in protecting the Earth's climate. In 2000, ST was ranked first in environmental management among 14 semiconductor companies by Innovest Strategic Value Advisors and received the only AAA ranking in eco-efficiency. Also in 2002, ST received the Seal of Sustainability from the Sustainable Business Institute and ST's back-end Malta plant received the Management Award for Sustainable Development as part of the European Awards for the Environment 2002, organized by the European Commission Directorate-General Environment. And most recently, ST was awarded the 'Best Industrial Renewable Energy Partnership' as part of the European Commission's Campaign for Take-Off for Renewable Energy Awards 2003'.

Since December 8, 1994, when ST completed its initial public offering, the Company has been quoted on the New York Stock Exchange (NYSE: STM) and on Euronext Paris, and since June 1998 also listed in Milan on Borsa Italiana. The Company has approximately 900 million outstanding shares, approximately 69% of which are publicly traded on the various stock exchanges. The balance of the shares is held by STMicroelectronics Holding II B.V., a company whose shareholders are Finmeccanica of Italy and a French consortium comprising Areva and France Telecom.