Best-in-Class Management Practices Position STMicroelectronics Among the Top Ten Green Companies of the Decade

Geneva, December 21, 2005 – STMicroelectronics (NYSE: STM), one of the world’s leading semiconductor manufacturers and a longtime leading proponent of sustainable development, has been named at the top of the Best Management Practices category and ranked among the Top Ten Companies of the Decade in the inaugural Low Carbon Leader Awards presented by The Climate Group and published with a recent survey on greenhouse gas emissions by BusinessWeek, on December 12, 2005.

The Climate Group and BusinessWeek have recognized and acknowledged ST’s best-in-class management practices, initiated by ST’s former CEO, and Honorary Chairman Pasquale Pistorio, and carried on by the Company’s current CEO, Carlo Bozotti. Pistorio, who believed environmental initiatives in making chips should come from the top, issued ST’s Environmental Decalogue with measurable, time-defined goals for environmental performance in 1995. With its aggressive Carbon Roadmap as a top executive priority, ST has succeeded in reducing its CO2 emissions by 50% over the past ten years, targeting carbon neutrality and total accumulated energy savings of $900 million by 2010. Last year alone, the Company saved $173 million in energy, water, and chemical costs, relative to its 1994 per-unit benchmarks.

Apart from reducing total emissions of CO2 by at least 5% per year, ST’s carbon neutrality programs include aggressively trimming emissions of perfluorinated compounds, adoption of renewable energy sources, such as wind and water, and reforestation as a means of compensating for the remaining CO2 emissions.

The jury has also rated ST’s Honorary Chairman Pasquale Pistorio as one of the most influential individual achievers in the fight against global warming.

The research and analysis was conducted by Innovest Strategic Value Advisors in cooperation with The Climate Group, and a panel of business leaders and academic experts, with the aim of identifying and ranking the companies that have shown the greatest initiative in cutting their greenhouse gas emissions and exhibited best policies and practices in the effort to eliminate global warming.

“These awards are a clear recognition of how important leadership is in tackling climate change,” said Dr. Steve Howard, CEO of The Climate Group. “STMicroelectronics is a leading example of a company that has taken a dynamic and pro-active approach to the issue. Following many years of sustained commitment to environmental issues, the company has seen that the solutions to climate change are possible, available, and cost effective. Our global future will be driven by a low-carbon economy, and by embracing this future that ST is reaping the benefits of, now.”

“I am proud to think that ST’s top scores in BusinessWeek’s environmental survey confirm that we are doing the right things the right way,” said Georges Auguste, Corporate Vice President, Director of Total Quality and Corporate Responsibility. “We will continue to develop new ways of making even greater contributions to global conservation efforts and set ourselves ambitious targets that go beyond local and international environmental legislation.”

The Low Carbon Leader Awards add to a long list of honors and awards on environmentalism that ST has garnered. Since 2000, ST has been recognized more than 20 times by organizations around the world for its local and global environmental achievements. A complete list, going back to 1991, is available in ST’s most recent Corporate Responsibility Report, posted at http://www.st.com/stonline/company/environm/report04/resp04.pdf.

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 2004, the Company’s net revenues were $8.76 billion and net earnings were $601 million. Further information on ST can be found at www.st.com.

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Michael Markowitz

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STMicroelectronics

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