STMicroelectronics and Hyundai Smart Technologies Announce First Visa VSDC Technology Level 3 Approved Dual-interface EMV Smart Card.

Business & Technology Editors

GENEVA, Switzerland & SEOUL, Korea--(BUSINESS WIRE)--Nov. 20, 2001

New smart card first to achieve Visa VSDC Technology Level 3

approval while combining contact and contactless functionality with

multi-application capability

STMicroelectronics (NYSE: STM) and Hyundai Smart Technologies Co., Ltd. (HST) today announced the availability of the world's first Visa VSDC* Technology Level 3 approved dual-interface multi-application smart card.

This card is expected to accelerate the migration to chip-based EMV* compliant cards with the addition of a contactless interface for new applications while also maintaining an extremely high security level recognized worldwide.

This multi-application card, based upon an ST19RF08 smart card controller IC, is compliant to the international EMV specification and supports the Visa Smart Debit/Credit application. The card also supports the Korean national e-Purse scheme, K-cash, for which it has already been certified by the Korea Electric Testing Institute. It will offer to banks a cost-effective multi-application solution with the added benefits of contactless technology.

Chun Kyung Kim, General Manager at HST, said: "This card represents a major breakthrough for the Korean banking community, as it will significantly increase the opportunities to deploy the secure Visa VSDC Cards with the K-cash purse, with the unrivalled advantage of the contactless capability. This solution may also be adapted to the needs of other institutions both on a national level, but also on an international scale. This cards could be particularly tailored to the current EMV migrations being undertaken in both Hong Kong and Taiwan."

The number of HST's Visa smart cards being issued is increasing significantly. This new card opens the door to a wide range of applications, including transport with the addition of the contactless interface. The cards' optimization offers the best ever performance/features to price ratio, with the advantage of being available in volume quantities today.

Andy Raschmeier, Financial Transactions Business Unit Director, Smartcard Division, STMicroelectronics, said: "We believe that this card, with its dual interface, its cost effectiveness and the use of the highly secure and powerful ST19RF08 smart card IC, will help banks to migrate to both contact and contactless smart card solutions according to their local and specific needs."

Note To Editors:

For additional information on Visa smart cards, visit:

Visa Develops Two New Low Cost Smart Cards for Member Banks

www.visa.com

*VSDC - Visa Smart Debit/Credit

*EMV - Eurocard Mastercard Visa

About Hyundai Smart Technologies Co., Ltd.

Hyundai Smart Technologies Co., Ltd.(HST) was founded in August, 1998 and is a leading information technology company specialized in smart card products in Korea. It had been originally formed in 1994 as part of Hyundai Electronics Inc. (HEI, one of the Korean Conglomerate companies) as an IC Card Business Unit to perform the Korean National Identification (NID) Project driven by the Korean Government. Its various types of high performance and low cost smart card products such as Banking Card, PKI Card, general Identification Card, Electronic Fund Transfer terminal, etc., are based on the HST's state-of-the art technology. HST is pursuing a total system solution to meet the exact requirements of customers in the field of both responsive customer service and technical assistance. HST's years of efforts and investments are now resulting in its excellent solutions such as Chip Operating System, installation service of Card Personalization System, System Integration service related to the e-Purse and EMV card fields, and many other solutions in smart card applications. Further information on HST can be found at www.hyundaist.com.

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.