STMicroelectronics Receives Award for Best European Practices in India.

Business Editors

GENEVA--(BUSINESS WIRE)--Dec. 4, 2001

STMicroelectronics (NYSE:STM) has received a special award from the European Bi-lateral Chambers of Commerce and Industry in India(a) for "Best European Practices in India", as part of the first IMPRESA Europe awards.

The award was presented at a recent ceremony in Mumbai, India, by Romano Prodi, President of the European Commission, in the presence of Michel Callouet, Ambassador and Head of Delegation of the European Commission, during their visit to the second India-European Union (EU) Business Summit.

The IMPRESA Europe awards were launched this year to extend the collaboration between the EU Bi-lateral Chambers and the Council of EU Chambers of Commerce in India, which was created to foster business relationships among participating countries.

The award for "Best European Practices in India" was presented as an exclusive tribute to ST's Intellectual Property (IP) design facility in Noida, India, for demonstrating the best example of an organization bringing excellent business practices into India. The panel of judges included eminent figures from European and Indian business, media, finance and other representative bodies. This is the second time that the initiative has recognized the company's business excellence - earlier this year, ST Noida was presented with the IMPRESA 2000 award from the Indo-Italian Chamber of Commerce and Industry.

ST's Noida center, also known as the IP Design Factory, is one of the company's largest IP design facilities and has approximately 800 employees. In addition to providing local marketing support, the primary function of the facility is the design of libraries of reusable IP for implementation in advanced system-on-chip (SoC) solutions, which are being used increasingly in electronic products in the global communications, digital consumer and computing markets.

Mario Santi, General Manager of ST's Noida facility, said, "The winning of this award is a direct reflection of the close integration and synergy that ST Noida has achieved within its local environment by adopting the business practices of the global ST organization. Our challenge is to blend the creativity of local engineers with ST's TQM-based design methodology to maximize design efficiency. In all, the award is an emphatic demonstration of the continued commitment of ST's management and its employees towards excellence."

About STMicroelectronics

STMicroelectronics is the world's third largest independent semiconductor company. The Company shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. In 2000, the Company's net revenues were $7,813.2 million and net earnings were $1,452.1 million. Further information on ST can be found at www.st.com.

(a) EU Bi-lateral Chambers: Indo-Belgian Chamber of Commerce and Industry; Indo- French Chamber of Commerce and Industry; Indo-German Chamber of Commerce and Industry; Indo-Italian Chamber of Commerce and Industry.