Technology Review Names STMicroelectronics Among Most Innovative Tech Companies

Technology Review Names STMicroelectronics Among Most Innovative Tech Companies

Based on Percentage Increase in R&D Spending in 2003, ST Ranked 18th in Technology Review's Innovation Index; number two within the semiconductor industry.

GENEVA, Jan. 4 /PRNewswire-FirstCall/ -- STMicroelectronics, one of the world's largest semiconductor companies, has announced that the Company has been ranked among the top 20 most innovative technology enterprises worldwide in the recently published 2004 Corporate R&D Scorecard compiled by MIT's (Massachusetts Institute of Technology) prestigious Technology Review magazine.

In the December issue of the magazine, Technology Review ranked companies across four key categories in its annual R&D Scorecard: size of R&D budget, percentage increase in R&D investment, R&D per employee, and R&D as a percentage of sales. The rankings were based on a survey of 150 of the largest global companies in a variety of high-technology industries, including semiconductors, computer hardware and software, telecommunications, transportation, energy, biotechnology, and consumer electronics. ST was ranked 18th in the Innovation Index across all worldwide industries and an excellent second in the semiconductor industry, after the undisputed market leader.

"R&D has always been the engine of ST's industrial success. It is no coincidence that for nearly two decades, ever since the birth of the Company in 1987, we have both consistently invested more than the industry average in R&D and also achieved a higher average growth rate than the market over the same period. The value of this R&D commitment has just been demonstrated once again by our recently announced victory in the race to deliver the first design platform for the 65nm era," said Pasquale Pistorio, President and Chief Executive Officer of STMicroelectronics. "Beyond the investment ST makes directly in R&D, we are also proud of the exciting and productive alliances we pioneered with strategic partners, universities, and research institutes around the world. We believe that this commitment to innovation at every level is essential in an increasingly competitive marketplace in which the convergence of applications requires more and more complex products to be developed and brought to market under ever-increasing time and cost pressures."

ST spent over $1.2 billion on research and development in 2003, a 21 percent increase from the previous year. This was the largest percentage increase and the second highest absolute increase in the semiconductor industry. This consistent commitment to R&D investment, maintained throughout difficult market conditions as well as good ones, has not only propelled the Company to the forefront of the mainstream System-on-Chip (SoC) market, with a world-leading array of SoC platforms covering applications as varied as Set- Top Boxes, mobile communications, and smart cards, but also placed it in pole position to pioneer the development of exciting future applications that will exploit ST's deep understanding of the optical and mechanical as well as the electrical properties of silicon.

Since its initial listing on the NYSE in 1994, ST's revenues have grown from US$2.64B to an estimated US$8.80B in 2004, a CAGR of 12.79%. Over the same period, the total semiconductor market grew from US$102B to an estimated US$216, a CAGR of 7.80%. In the ten years since ST's NYSE listing, the company has grown over 60% faster than the market it serves.

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
Vice President Senior Manager
Investor Relations Investor Relations
Tel: +1.212.821.89.39 Tel: +41.22.929.69.73
Fax: +1.212.821.89.23 Fax: +41.22.929.69.61
Email: stan.march@st.com Email: fabrizio.rossini@st.com

Benoit de Leusse
Director
Investor Relations
Tel: +41.22.929.58.12
Fax: +41.22.929.69.61
Email: benoit.de-leusse@st.com

MEDIA RELATIONS:

Maria Grazia Prestini Michael Markowitz
Director, Corporate Media Relations Director, U.S. Media Relations
Tel: +41.2.29.29.69.45 Tel: +1.212.821.8959
Fax: +41.2.29.29.69.50 Fax: +1.212.821.8922
Email: mariagrazia.prestini@st.com Email: michael.markowitz@st.com


Source: STMicroelectronics

CONTACT: Investor relations: Stanley March, Vice President, Investor
Relations, +1-212-821-8939, Fax: +1-212-821-8923, stan.march@st.com, Fabrizio
Rossini, Senior Manager, Investor Relations, +41-22-929-69-73, or
Fax: +41-22-929-69-61, fabrizio.rossini@st.com, or Benoit de Leusse, Director,
Investor Relations, +41-22-929-58-12, Fax: +41-22-929-69-61, benoit.de-
leusse@st.com; or Media Relations: Maria Grazia Prestini, Director, Corporate
Media Relations, +41-2-29-29-69-45, Fax: +41-2-29-29-69-50,
mariagrazia.prestini@st.com, or Michael Markowitz, Director, U.S. Media
Relations, +1-212-821-8959, Fax: +1-212-821-8922, mike.markowitz@st.com, all
of STMicroelectronics

Web site: http://www.st.com/


-------
Profile: intent