STMicroelectronics to Participate in China's Open-Source Computing Initiative

GENEVA, Oct. 11 /PRNewswire-FirstCall/ -- An agreement signed in Beijing on October 9 between the Chinese Ministry of Science and Technology (MOST) and CEA, the French Atomic Energy Commission, in association with Bull and STMicroelectronics (ST) makes ST the first global semiconductor manufacturer to become a partner in the Chinese Open Platform Initiative, which is developing a new computing platform based on Linux open-source software. Under the terms of the agreement, ST will work closely with Chinese, French, and other partners to develop low-cost, high-performance hardware/software platforms that pave the way for a complete chain of compatible open-source systems, from servers to mobile terminals and consumer appliances.

An 'Open-source system' is one in which the source code of the software and a detailed technical description of the interfaces to the hardware are both available to the general public for use and, in the case of the software, modification and redistribution. Open-source systems tend to be less expensive and more reliable than proprietary systems and are better suited to being maintained and improved by a community of collaborators. China has been a strong advocate of open-source platforms for many years and has already adopted Linux as a standard. ST has already developed consumer and mobile platforms running Linux, such as its award-winning(1) Nomadik mobile platform, and is strongly positioned to play a key role in the development of new open-source platforms enabling the development of new mobile and distributed applications.

The agreement between MOST and ST-CEA-Bull follows an earlier MOU between the French and Chinese Governments to build a wide-ranging technical cooperation that addresses both the immediate local requirements of the Chinese market and the broader global movement towards low-cost but high-performance open-source platforms. Within this framework, ST will be working closely with CEA and Bull, as well as with existing and future Chinese partners.

"What we bring to this program is a complete portfolio of technologies and applications," said Philippe Geyres, Corporate Vice President and General Manager of the Consumer and Microcontrollers Group at STMicroelectronics. "ST has all of the design and manufacturing resources required for China's immediate needs and the worldwide presence that can support this important initiative that will help to bridge the Digital Divide by making PCs more affordable throughout the world."

"MOST welcomes ST's commitment to this multinational program that will make an important contribution both to the immediate growth of the Chinese IT, telecom and consumer industries and to the global proliferation of open-source platforms," said Li Wuqiang, Deputy Director General of MOST High and New Technology Development & Industrialization Department.

According to the latest figures from independent market analyst Gartner Dataquest, ST is the second largest supplier of semiconductor devices to the Chinese market. The Company operates one of China's most advanced semiconductor assembly and test plants in Shenzhen and currently employs more than 2,500 people in China. In addition, ST has established R&D and product-development alliances with Chinese universities, research institutes, and manufacturing enterprises through which it has developed particular expertise in developing customized solutions for the burgeoning Chinese electronics market, especially in next-generation communications, and consumer products.

"We are proud that ST has been invited to play a key role in one of the world's most exciting strategic IT programs," said Philippe Geyres. "This agreement will help increase the strong presence we have already established in the Chinese market." About STMicroelectronics

STMicroelectronics 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 2003, the Company's net revenues were $7.24 billion and net earnings were $253 million. Further information on ST can be found at http://www.st.com. For further information, please contact INVESTOR RELATIONS: Stanley March Fabrizio Rossini

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(1) The STn8800 Nomadik processor, which won the 2004 Microprocessor

Report Analysts' Choice Award for Best Application Processor of the

Year, is the foundation for third-generation mobile phones and

personal digital assistants capable of playing music, taking

pictures, recording video, and hosting two-way video communication in

real time.