AMI Semiconductor Acquires Alcatel Microelectronics' Mixed-Signal Business from STMicroelectronics.

Business & High-Tech Editors

POCATELLO, Idaho & GENEVA, Switzerland--(BUSINESS WIRE)--April 15, 2002

AMI Semiconductor Inc. (AMIS) and STMicroelectronics (NYSE:STM) today announced that the two companies have signed an agreement whereby AMIS will purchase from STMicroelectronics the just acquired mixed-signal business activities of Alcatel Microelectronics.

The transaction will cover Alcatel Microelectronics' mixed-signal ASIC business and development groups, including two Alcatel Microelectronics fabrication facilities located in Oudenaarde, Belgium and the associated process technologies. The deal will strengthen AMIS' leading position in the digital and mixed-signal ASIC market for telecommunication, automotive, and industrial applications. In connection with the transaction, STMicroelectronics and AMIS have signed a supply agreement under which AMIS will provide certain manufacturing services for STMicroelectronics.

The manufacturing facilities and process technology, some of which ST will license to AMIS within the scope of the transaction, will extend AMIS' mixed signal ASIC products to include high voltage, BiCMOS, and other analog capabilities to serve a wider market and set of customer applications.

"The addition of this mixed-signal technology will enable us to achieve our goal to provide a total ASIC solution to the automotive, industrial, medical, and telecom markets," said Christine King, President and CEO of AMI Semiconductor. "Our agreement with STMicroelectronics will enhance our ability to serve our customers and strengthens our European and global presence. This transaction will also add over $100 million in annual sales revenues as we continue the goal of growing our company."

"We are pleased with this agreement with AMIS for its acquisition of the mixed-signal ASIC business of Alcatel Microelectronics and its related operations and facilities from ST, in conjunction with ST's agreement with Alcatel. As a result, this means that each of the companies involved in this transaction will have been able to reinforce their respective core businesses and will be able to focus even more on their strategically important markets," said Alain Dutheil, Corporate Vice President of Strategic Planning and Human Resources, STMicroelectronics.

The terms of the agreement were not disclosed. The purchase is subject to regulatory approvals.

About AMI Semiconductor

AMI Semiconductor, Inc. designs, manufactures, markets, and sells application-specific integrated circuits. Expert in digital and mixed-signal technologies, AMIS is committed to providing customers with the lowest cost, quickest time-to-market ASIC solution. The company provides a broad range of industry-leading FPGA-to-ASIC and ASIC-to-ASIC conversion services and state-of-the-art mixed-signal ASICs - all with unparalleled manufacturing flexibility and dedication to customer service. AMI Semiconductor is based in Pocatello, Idaho, and maintains a strong global presence through design and sales operations in North America, Europe, and the Asia/Pacific region. Visit the AMIS web site at www.amis.com.

About STMicroelectronics

STMicroelectronics, the world's third largest independent semiconductor company, 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 2001, the Company's net revenues were $6.36 billion and net earnings were $257.1 million. Further information on ST can be found at www.st.com.

AMI Semiconductor Forward Looking Statements

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