Foreword by Carlo Bozotti

Chief Executive Officer

This Corporate Responsibility report is published at a very special time for our company: exactly 20 years ago, SGS Microelettronica and Thomson Semiconductors merged to form SGS-Thomson Microelectronics, which became STMicroelectronics in 1998. In these 20 years, we grew our sales by more than ten times, we improved our ranking in the semiconductor industry from position #15 to position #5, and of course from all points of view, ST today is immensely more solid.

This success is based on many factors: leading technologies, diverse product portfolio, world class customer base, strong financial position. But I believe that our culture of Corporate Responsibility is a most fundamental factor: demonstrating our sense of responsibility and creating long term value for all our stakeholders is the key enabler of sustainable performance.

When our company was created we defined our values and our primary objectives as customer satisfaction, creating value for shareholders, contributing to the well-being of employees and communities, and striving for sustainable development. These priorities never changed, and they have materialized in the many programs we have launched and deployed over the years.

In 2006, I highlighted our focus on energy savings, health, quality, and financial results, in order to respond to stakeholders’ expectations. We have made very significant progress: energy consumption per unit produced continues to decrease 5% per year, and our products contribute to significant energy savings in their applications; the health program launched last year now covers more than 50% of our employees, our quality improvements are recognized by our customers, and we also improved our key financial parameters.

Integrity is the other priority that I highlighted last year, and we have recently published our Principles for Sustainable Excellence - our renewed code of conduct. This shows our commitment to stand for what is right, and demonstrates that our values are there, strong and solid as ever. Our Principles and the training programs that we have designed to deploy them throughout the company, represent a clear and determined means of ensuring greater responsibility, accountability and transparency in all aspects of our business activities.

This report has been prepared following the G3 GRI Guidelines. It represents a balanced and reasonable presentation of our organization’s economic, environmental and social performance and demonstrates our commitment to the UN Global Compact, of which we have been a signatory since 2000.

Carlo Bozotti
President and CEO of STMicroelectronics