STMicroelectronics Selected by Top Tier Telecom Player to be Supplier of Digital Baseband ASICs for 3G Mobile Phones


W-CDMA mobile-phone platforms enabled by ST digital baseband ASICs now shipping

Geneva, December 14, 2006 - STMicroelectronics (NYSE: STM) today announced that it has signed an agreement with Ericsson Mobile Platforms to supply third-generation (3G) digital baseband processors to OEMs that are licensees of Ericsson Mobile Platforms' leading-edge 3G mobile-phone technology. Because it handles the communication between the phone and the cell within the 3G mobile phone network, the digital baseband processor is a key component in a mobile phone. New 3G handsets operating on the W-CDMA (Wideband - Code Division Multiple Access) network, which contain these new digital baseband processor chips have already been delivered to selected customers.

In addition to manufacturing the processors in its leading-edge process technology, ST is also contributing to the development of these digital baseband ASICs by combining its expertise in System-on-Chip (SoC) design with the mobile platform knowledge of Ericsson Mobile Platforms.

"This agreement to produce the digital baseband is testament to ST's world renowned ability to develop and produce cutting-edge semiconductor products for current and future generations of 3G mobile communications technology," said Eric Aussedat, Group Vice-President and General Manager of ST's Cellular Communication Division. "Ericsson Mobile Platforms' is the leading independent platform supplier in the world, and this agreement further strengthens ST's position as a leading chip supplier in the mobile handset market."

ST is one of the world leaders in ICs for mobile communications ICs and offers an extensive portfolio of chips designed for use in mobile handsets and phones, including camera image sensors, Bluetooth and Wireless-LAN connectivity ICs, RF (radio-frequency) ICs, energy management chips, NOR and NAND Flash memories, discrete components, and also the award-winning Nomadik(TM) Multimedia Application Processor, which delivers world-beating video and audio performance to mid- to high-end multimedia phones and terminals.

About Ericsson Mobile Platforms
Ericsson Mobile Platforms offers complete, end-to-end interoperability tested platforms for 2.5 and 3G. A common software platform for GPRS, EDGE and WCDMA/GPRS terminals enables application portability, stability and security, and ensures best-in-class outcomes regarding power consumption and size.

The technology is based on Ericsson's global leadership of standardization work and the world's strongest intellectual property rights for 2.5 and 3G systems.

Ericsson Mobile Platforms' offering includes reference design, platform software, ASICs and development boards, development and test tools, industrialization software, support, training and documentation.

Ericsson Mobile Platforms is a business unit within the Ericsson Group.

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 2005, the Company's net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at www.st.com.

For further information, please contact

Mike Markowitz
STMicroelectronics
Director of Worldwide Technical Media Relations
Tel: +1 212 821 8959
michael.markowitz@st.com

Carol Brown
STMicroelectronics
US Media Relations
603 465 9213

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