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STMicroelectronics Leads European MPEG Decoder Shipments for Integrated Digital TV Applications

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STMicroelectronics
10 Maguire Road
Lexington, MA, 02421
USA



Press release date: January 8, 2008

Leading TV manufacturers choose ST's proven set-top-box technologies for feature-rich standard- and high-definition MPEG-2 and H.264 integrated digital TV sets

Geneva, January 08,2008 - STMicroelectronics (NYSE: STM), the world's foremost supplier of ICs for TV set-top boxes (STBs)1, today confirmed its leadership position for the shipment of MPEG-2 and H.264 decoder chips for use in integrated Digital TV sets (iDTVs) for the European market. These iDTVs are TV sets that integrate a digital TV receiver, and are today primarily aimed at the digital terrestrial broadcast market.

In 2007, ST again increased its MPEG-2 market share shipping 10 million decoders, primarily from its STi510x family, for use in iDTV applications, measured against a total European market of 12 million iDTV sets2. The 2007 totals compare with 3.1 million decoders shipped by ST, and 5.2 million integrated TV sets sold in Europe2 in 2006.

LCD TV sales are growing rapidly towards market domination, especially in Europe, as display prices fall. Sales of integrated digital TVs, increasingly popular with consumers because of their convenience, are further encouraged by the planned analog switch-off across Europe, and mandates such as the French requirement that all TV sets should integrate a digital decoder by March 2008.

Additionally, early adoption of the H.264 standard - also known as AVC (Advanced Video Coding) and MPEG-4 Part 10 - as the European high-definition (HD) standard has gained added impetus from a French ruling that by December 2008, all 'HD-Ready' TV sets sold in France must integrate a high-definition decoder.

Leading TV manufacturers are now capitalizing on the proven capability of ST's H.264 decoding technology - with its widespread use in both high-definition and standard-definition set-top boxes - when designing new iDTV products, or adding H.264 capability to their existing platforms. The rich feature set and embedded connectivity of ST's STi710x high-definition H.264 decoder family enables the later enhancement of H.264 TV set platforms with built-in features such as DLNA 1.5 compliant Digital Media Players, IPTV (Internet Protocol TV), or DVRs (Digital Video Recorders), as well as simplifying the addition of hard-disk drives, image sources and network capabilities. The family also includes a dedicated 24-bit digital-video output to gluelessly connect to market-leading analog TV scalers.

"With TV industry leaders choosing ST's H.264 decoder technology for their 2008 models, we are well on the way to becoming the leading supplier of H.264 chips for iDTV, to match our leadership position in MPEG-2," said Philippe Lambinet, Corporate Vice-President and general manager of ST's Home Entertainment and Displays Group. "Two of the three 'TNT HD' sets currently selling in France use ST's chips, and others are on the way."

About H.264 The H.264/AVC standard is an ultra-efficient, fully scalable video technology that produces high quality video at lower data rates than other solutions, and can be used in applications from HDTV and DVD to 3G (third generation) mobile phones. Services broadcast using H.264 use considerably less bandwidth than the widely used MPEG-2 coding scheme, and at a much lower bitrate, allowing broadcasters economically to transmit more high definition programming. Compression efficiency is improved by more than 50%.

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 2006, the Company's net revenues were $9.85 billion and net earnings were $782 million. Further information on ST can be found at www.st.com. Information last updated Jan 2007

1. 'MPEG Video ICs: H.264 in the Limelight' published by InStat. June 2007 2. iSuppli - DTV Semiconductors Market Tracker - Q3 2007
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