STMicroelectronics Inaugurates its New Design Campus in India

In Greater Noida, India, ST opens a large R&D facility and announces new investment and recruitment initiatives

New Delhi, February 20, 2006 – STMicroelectronics (NYSE:STM), one of the world’s largest semiconductor manufacturers, inaugurated its new state-of-the-art design and development facility in Greater Noida, India on Saturday, February 18. The Company also announced its plans to invest US$30 million in local operations over the next two years and recruit 300 new engineers by the end of 2006.

The new facility was inaugurated by Mr. Brijesh Kumar, IT Secretary, Ministry of Information and Technology in the presence of customers, government representatives, local authorities and members of the press. Set on a 100,000 square meter area and with a capacity for 5000 employees, the new campus is ST’s largest design center outside Europe and one of its largest R&D facilities worldwide.

In his speech at the inaugural ceremony, Carlo Bozotti, President and CEO of STMicroelectronics, declared, “The new facility truly underlines the growing importance of ST’s India operations within our global R&D efforts. These efforts represent the essence of the Company’s continued growth. ST India has contributed significantly to the development of leading-edge technologies and products for a number of our key applications, including set-top box, multimedia, imaging, wireless telecommunications, and automotive.”

Among other achievements, designers in India participated in the development of ST’s Nomadik™ platform, an award-winning mobile application architecture, as well as helping to design ST’s market-leading set-top box chips and low-power CMOS camera modules. ST engineers in India also contributed to the development of the first design platform on the 90-nm deep-submicron CMOS technology, and their research and development activities have been recognized with almost 40 patents worldwide.

In addition to the new design center unit, the facilities at the Greater Noida site provide additional workplace for 370 service staff and a large cafeteria with 750 seats. The buildings are designed to maximize energy and water conservation, using light and tap sensors, rain water harvesting, and sewage treatment plants. Moreover, the exterior of the buildings is covered with double-insulated reflective glass and the terraces have thermal insulation for controlling excessive heat.

Since its inception in the late 1980s, STMicroelectronics India has evolved into one of the largest semiconductor research and design operations in the country, currently employing 1500 people. The Company has a successful track record in attracting talented engineers, leveraging its strong relationships with leading Indian universities and research institutes. Globally committed to the principles of corporate responsibility, ST also cooperates with the local government authorities in India to bridge the “Digital Divide” by offering computer literacy courses and technology access.

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 http://www.st.com