STMicroelectronics is a global independent semiconductor company that 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 1999, ST's net revenues were US $5.056 billion and net earnings were US $547 million. According to leading market analyst Gartner/Dataquest's 1999 preliminary ranking, STMicroelectronics is now the eighth largest semiconductor company in the world, moving up from ninth position in 1998.

According to the most recent data from independent sources ST is the world's leading supplier of MPEG-2 decoder ICs, Digital Set-Top Box ICs, Smartcard MCUs, special automotive ICs and EPROM non-volatile memories and is also the second leading supplier of analog and mixed-signal ASSPs and ASICs, disk drive ICs and EEPROM memories.

The Company's products are manufactured and designed using a broad range of fabrication processes and proprietary design methods. To complement this depth and diversity of process and design technology the Company also possesses a broad intellectual property portfolio that it has used to enter into cross-licensing agreements with many other leading semiconductor manufacturers.

ST has developed a worldwide network of strategic alliances, including product development with key customers, technology development with customers and other semiconductor manufacturers, and equipment and CAD development alliances with major suppliers. By augmenting its rich portfolio of proprietary technologies and core competencies with complementary expertise from a variety of carefully chosen strategic partners, ST has developed an unsurpassed capability to offer leading-edge solutions to customers in all segments of the electronics industry.

The Company currently offers more than 3,000 main types of products to more than 1,500 customers, including Alcatel, Bosch, DaimlerChrysler, Ford, Gemplus, Hewlett-Packard, IBM, Motorola, Nokia, Nortel Networks, Philips, Seagate Technology, Siemens, Sony, Thomson Multimedia and Western Digital. In 1999, close to 63% of ST's revenue derived from differentiated products, a combination of dedicated, semi-custom and programmable products designed to suit a specific customer or a specific application and therefore having a high system content. This result reflects ST's early recognition of the importance of system-on-chip technology and the success of the strategies it developed to ensure its leading position in this key emerging field.