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Rome, July 2006

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STMicroelectronicsa global semiconductor company

12 %North

America

30 %Europe

4 %Japan

22 %Asia Pacific

7 %Emerging Markets*

Q1 2006 Sales : US$ 2.36 billion

2005 Sales : US$ 8.88 billion

Approximately 50,000 employees

16 main production sites

16 advanced R&D centers

39 design and application centers

78 direct sales offices in 36 countries

*India, Russia, Africa, Latin America, Middle East** China, Taiwan, Hong Kong

Sales by region % of Q1 2006 sales

25 %GreaterChina**

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Shareholding structure*

* At December 31, 2005** New York Stock Exchange, Euronext, Paris and Borsa Italiana, Milano*** ST Holding II BV is a company whose shares are owned indirectly by Areva, and directly by Finmeccanica and Cassa Depositi e Prestiti which have signed between them a STH Shareholders’ Agreement. (1) Based on Corporate Governance rights between FT1CI/Areva and CDP/Finmeccanica pursuant to STH Shareholders’ Agreement

AREVA 100%

Public** 72.4%

STMicroelectronics N.V. (ST)

CDP / Finmeccanica 50% (1)

ST Holding II B.V.***27.6%

FT1CI 50 %

ST Holding N.V. 100%

Cassa Depositi e Prestiti(CDP) 60%

Finmeccanica40%

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2004 2005

2005 2004 Sales Sales 2004/2005 Fcst Change

Rank Rank COMPANY HEADQUARTERS ($M) ($M, Fcst) % Change in Ranking

1 1 Intel U.S. 30.900 35.475 15% none

2 2 Samsung South Korea 15.830 17.650 11% none

3 3 Texas Instruments U.S. 10.700 11.330 6% none

4 7 Toshiba Japan 8.531 9.500 11% + 3 positions

5 6 STMicroelectronics Europe 8.760 8.870 1% + 1 position

6 4 Infineon Europe 9.180 8.400 -8% - 2 positions

7 5 Renesas Japan 9.000 8.310 -8% - 2 positions

8 8 TSMC * Taiwan 7.648 8.185 7% none

9 12 Sony Japan 5.070 6.025 19% + 3 positions

10 10 Philips Europe 5.692 5.925 4% none

* foundry

2005 TOP 20 WORLDWIDE SEMICONDUCTOR

SUPPLIER RANKING ($M, Forecast)

Source: Company Reports, IC Insights

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innovationInvesting inR&D expenditure

US$ millions

R&D expenditureUS$ millions

CAPEXUS$ millions

CAPEXUS$ millions

978 1022

1238

15321630

409

1700

996

1221

2050

1441

297

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STMicroelectronics Italy

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AGRATE

CATANIA

CASTELLETTO

Excellence center of R&DMulti-functions center of

Manufacturing, R&D, Marketing,…

ITALY

ARZANO Naples

Multi-functions center ofManufacturing, R&D, Marketing,…

HW and SW design

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ST Italy Sites - an historical and significant presence

Catania Area• acting Employees 4564• of which degree/high school 95% • of which employed in R&D 27%

• acting Employees 5414• of which degree/high school 86% • of which employed in R&D 39%

Milan Area including Naples

ST Italy Sites

• acting Employees 9978• of which degree/high school 89% • of which employed in R&D 34%

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ST Italy - Census by category of Activity (%)

34

47

19

R&D Manufacturing MKTG/SITE/ADM/OTHER

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ST ITALY 2005 at a glance

Revenues (M eur.) 1674 Net equity (M eur.) 1698 Personnel (ACTING) 9978 20% ST

Degree / high school 89 % Other 11 %

Investments (M eur.) 258 22% ST R&D expenses (M eur.) 408 31% ST Patents filed (n.) 253 35% ST Production (8”eq. Kwaf) 1100 21% ST

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STMicroelectronics in DIGITAL CONVERGENCE• Pioneer and leader in Digital Consumer with 60% market share in

MPEG2, MPEG4 and advance coding for standard and high definition.

• First supplier of single chip MPEG4/H264 HD decoder.

• Chipset supplier for Satellite, Cable, IPTV and DTT Set Top Box Manufacturers.

• System solution for Mobile TV DVB-H.

• Close cooperation with all Italian broadcasters and telecom operators.

• Member of HD Forum.

• Competence Center for Digital Consumer in Milano area