SGS-THOMSON launches STI5500, a complete set-top box system on a single chip.

GRENOBLE, France--(BUSINESS WIRE)--April, 21 1997--

SGS-THOMSON ships 10 millionth MPEG decoder 

SGS-THOMSON Microelectronics (NYSE:STM) has begun sampling the STi5500, the first in a family of highly integrated devices which combine an MPEG-2 audio/video decoder with a 32-bit microprocessor and other functions to create a complete DVD or set-top box back-end on a single chip. The availability of sample devices allows customers to begin immediate development of second generation set-top boxes and DVD players. The STi5500, designed to replace three existing ICs, will enter volume production later this year.

The availability of this latest device coincided with the shipment of SGS-THOMSON's 10 millionth MPEG decoder integrated circuit (IC). This major milestone was achieved three years after the first shipments of these key ICs for multimedia first began.

"The STi5500, combined with the shipment of 10 million MPEG decoder ICs, underlines our position as the world leader in the MPEG market," explained Guy Lauvergeon, Director of SGS- THOMSON's Image Processing Business Unit. "Our leadership in this market comes from the competitiveness of our products in terms of performance, quality and price."

"With the STi5500 we offer set-top box and DVD makers an opportunity to reduce decoder engine costs quickly with minimal effort and risk," said Lauvergeon. "Because STi5500 is compatible with the first generation SGS-THOMSON set-top box chip set, it assures a fast migration to the new one-chip solution. In addition, it provides the certainty that all the major functional blocks have already been proven in millions of end products."

SGS-THOMSON's leadership of this fast-growing market was confirmed last year by industry analyst Dataquest, in a report that estimates that SGS-THOMSON had a 71.4% share of the market for MPEG-2 decoders, which are used in consumer electronics products, such as multimedia PCs, the forthcoming DVD systems, digital set-top boxes and other products such as set-top box-based Internet terminals and camcorders.

SGS-THOMSON Microelectronics is a global independent semiconductor company listed on the New York Stock Exchange (NYSE: STM) and on the Bourse de Paris. The company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems.

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