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ST Gains In Recognition

STMicroelectronics was one of three silicon chip manufacturers to be named in BusinessWeek's "InfoTech 100" annual ranking of top technology companies.

The Business Week ranking is based on revenue, revenue growth, shareholder
return and return on equity, with total revenue weighted 1.5 times the
weighting of the other criteria. ST's 2002 performance placed it 92nd behind
Intel (82nd) and ahead of Taiwanese foundry TSMC (94th). No other pure-play
semiconductor manufacturer from any part of the world made the top 100 list.
Of STMicroelectronics, BusinessWeek says: "It pays to diversify: the world's
No.3 chipmaker is outpacing rivals thanks to its broad product range and
steady investments."



Since its formation in 1987, when it was ranked 15th in the world
semiconductor league, ST has consistently grown faster than the
semiconductor market and is now a solid member of the world's top five chip
giants. This standing has been achieved by investing an average of 14% of
its net revenues in research and development, consistently above the
industry average and by forming close relationships with key customers in
diverse industries.



Alain Dutheil, corporate vice-president Strategic Planning and Human
Resources, comments: "Along with the increasing pervasiveness of
microelectronics, continual advances in semiconductor technology help drive
the growth of all industries that use electronics. We are proud to join top
customers such as HP, Nokia, Pioneer, Samsung, Seagate and Western Digital
on this prestigious list and we are delighted to think that our solutions
may have contributed to their success."



Furher financial recognition came from STMicroelectronics being added to the
Philadelphia Stock Exchange Semiconductor Sector Index (SOX). The SOX is a
price-weighted index comprised of 18 companies that are primarily involved
in the design, distribution, manufacturing and sale of semiconductors. Based
on its closing stock price on June 20, 2003, ST should be firmly within the
top 50 percentile of the SOX.



ST has also been added in the last week to the Dow Jones Technology Titans
30 Index, which is designed to capture the performance of the most important
and influential technology companies.



Other stock indexes including ST are the Paris Bourse CAC-40, the Milan
Stock Exchange's MIB 30 and the NYSE Composite Index.



On the technical front, the European Organisation for Nuclear Research
(CERN) in Geneva presented the ALICE Industrial Award 2003 to
STMicroelectronics in recognition of the company's successful collaboration
with the ALICE high energy particle detector team and its excellent
performance in delivering a unique mixed-signal System-On-Chip (SoC)
solution in record time.



The ALICE (A Large Ion Collider Experiment) collaboration is preparing one
of the major experiments that will be performed on the Large Hadron Collider
(LHC), the world's largest particle accelerator. The LHC will be 27km across
and is currently being built by CERN near Geneva, Switzerland.



STMicroelectronics co-designed with CERN and manufactured the dedicated
'ALTRO' chip to work in conjunction with a sophisticated atomic particle
detector and a 'Charpak' wire chamber the size of a big bus containing
nearly 600,000 wires running across it.



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