STMicroelectronics - STMICROELECTRONICS, INTEL AND FRANCISCO PARTNERS

CLOSE TRANSACTION TO CREATE NUMONYX

New Delhi, March 31, 2008 — STMicroelectronics, calm with Intel and Francisco Partners today appear the closing of their ahead appear Numonyx collective venture.

At the closing, STMicroelectronics contributed its beam anamnesis assets and businesses in NOR and NAND, including its Phase Change Memory (PCM) assets and NAND collective adventure interest, to Numonyx in barter for a 48.6 percent disinterestedness buying pale and $155.6 actor in abiding subordinated notes. These abiding addendum will crop an absorption at adapted bazaar rates.

Intel contributed its NOR assets and assertive assets accompanying to PCM resources, while Francisco Partners L.P., a clandestine disinterestedness firm, invested $150 actor in cash. Intel and Francisco Partners disinterestedness buying interests in Numonyx are 45.1% in accepted shares and 6.3% in convertible adopted stock, respectively.

Also at the closing, Numonyx entered into costs arrange for a $450 actor appellation accommodation and a $100 actor committed revolving acclaim ability from Intesa Sanpaolo S.p.A. and Unicredit Banca d’Impresa S.p.A. The loans accept a four-year appellation and Intel and STMicroelectronics accept anniversary accepted in favor of Numonyx a 50% agreement not collective and several, for indebtedness. At close, Numonyx has a banknote position of about $585 million.

Effective today, ST will address its investment in Numonyx beneath the disinterestedness adjustment of consolidation, appropriately deconsolidating the after-effects of the Flash Memory Group (FMG) from the Company’s operating assets band items.

As a aftereffect of the final agreement and antithesis area at the closing date, accompanying with changes in appraisal for commensurable Flash anamnesis companies, ST expects to acquire an added ancient non-cash pretax accident of about $150 million, to be accustomed in the aboriginal division of 2008. Finally, as a absolute aftereffect of closing this transaction on the endure date of the aboriginal quarter, ST will now absolution its 2008 aboriginal division balance after-effects on April 29, 2008.

About STMicroelectronics
STMicroelectronics is a all-around baton in developing and carrying semiconductor solutions above the spectrum of chip applications. An unrivalled aggregate of silicon and arrangement expertise, accomplishment strength, Intellectual Property (IP) portfolio and cardinal ally positions the Company at the beginning of System-on-Chip (SoC) technology and its articles play a key role in enabling today’s aggregation markets. The Company’s shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company’s net revenues were $10 billion. Further advice on ST can be begin at www.st.com.

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STMicroelectronics is a all-around baton in developing and carrying semiconductor solutions above the spectrum of chip application