China's Institute of Computing Technology and STMicroelectronics Announce Their Cooperation on the Loongson Processors

Processors deliver world-class performance and optimized power consumption

BEIJING -- March 28, 2007 -- The Institute of Computing Technology (ICT) of the Chinese Academy of Sciences and STMicroelectronics (NYSE: STM), one of the world's largest semiconductor manufacturers, today announced their cooperation on the development and commercial exploitation of processors, based on Loongson-2E IP developed by ICT. The first-generation product, Loongson 2E, which is now sampling with selected customers, delivers world-class performance and optimized power consumption at a compelling price point.

The cooperation between ICT and ST was started in 2004 in the framework of the France-China Technology Cooperation (CTIBO). Within the project, ICT is responsible for the architecture and the design of the processors, while ST supplies the technology process, manufacturing and sales. ICT and ST will jointly promote the processors into the Chinese market. Under the present license agreement, ICT grants to ST the rights to manufacture and sell worldwide the processors developed within the cooperation for five years.

Dr Li Guo Jie, Director of ICT said, "The Loongson CPU R&D project is a demonstration of China's innovative capability. ICT is not only focused on the research and development of core technology, but also on the commercial licensing of its IPs. The licensing by a foreign company of the Loongson 2E IP proves that ICT has successfully placed China on the world's technology competitive stage. Through the cooperation with ST, the commercialization of this technology is shortened with great market potential."

"ST is very proud to cooperate with ICT, the most advanced R&D center for computer design in China. This joint effort combines ICT's outstanding capabilities in advanced processor design with ST's leading-edge technology and world-class manufacturing machine," said Gian Luca Bertino, General Manager, Computer Peripherals Group and Corporate VP at STMicroelectronics. "The Loongson family of processors delivers impressive performance and low power for a variety of applications."

The Loongson processors will be based on advanced superscalar 64-bit architecture that is compatible with MIPS64(R) architecture from MIPS Technology Inc. ST has acquired a full license to the MIPS64 architecture as part of the Loongson program.

About ICT

The Institute of Computing Technology of the Chinese Academy of Sciences (hereafter ICT) was established in 1956. It was the first academic institution to specialize in comprehensive research into computer science and technology in China. ICT is one of the first pilot institutes for the "Knowledge Innovation Program" in the Chinese Academy of Sciences. ICT is now in the process of developing into a networked research institute, consisting of the headquarter in Beijing plus several branches in Shanghai, Suzhou, Ningbo, Dongguan and elsewhere. At the headquarter, ICT has three R&D divisions, one Center for Advanced Studies and one Center for Pervasive Computing. Its accomplishments include the Dawning series of high-performance computers, the Loongson CPUs, and the Blue Whale Network Storage etc. ICT also focuses on next generation network infrastructure and digital contents processing, carrying out in-depth research into mobile internet, trusted networks and systems, broadband mobile communications, sensor networks, digital media, human-computer interactions, virtual reality, and multimedia terminals. And ICT conducts research on theories, algorithms and technology for information security, information retrieval, grid computing, and intelligent information processing.

For more information, visit http://www.ict.ac.cn

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 2006, the Company's net revenues were $9.85 billion and net earnings were $782 million. Further information on ST can be found at http://www.st.com.