STMicroelectronics Signs Agreement with ZF Micro Devices Enabling Customers to Combine Failsafe Technology with ST's x86-based STPC Family.

Business Editors & High Tech Writers

GENEVA--(BUSINESS WIRE)--Dec. 12, 2001

STMicroelectronics (NYSE: STM) announced today an agreement with ZF Micro Devices, a supplier of single-chip PC silicon devices that will allow customers to use ZF Micro's crash-immune Failsafe(TM) technology with ST's range of x86-based STPC system-on-chip products.

The agreement gives worldwide second-source rights to ZF Micro Devices for three products in the STPC range: the low power STPC Elite for low-cost communication control and server appliance applications; the STPC Consumer-II for applications with graphics displays on either CRT monitors or PAL/NTSC TV; and the STPC Atlas, which also integrates all the I/Os to make a very low cost terminal with a CRT monitor or TFT LCD display. The two companies are also discussing a possible extension of the agreement to include other STPC products.

Through this agreement, customers for PC-compatible system-on-chip devices will be able to benefit from ZF Micro Devices' strengths in complete system solutions and a wide range of system IP including Network Attached Storage and Internet Appliance reference designs with full Linux and Windows CE software implementation. This complements ST's strengths in designing and manufacturing high performance, high integration, low power and low cost system-on-chip solutions incorporating a wide range of silicon-based IP.

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 STMicroelectronics can be found at www.st.com.