Implementation of restructuring plan

Restructuring plan results – France region
Total number of people involved	998
End of temporary contracts (fixed-term or interim contracts, subcontracting, etc.)	588
2005 departures (turnover)	111
Internal transfers to other activities	71
Individual validated projects within the GER* Plan**	228
- Internal mobility inside France	19
- Mobility to Asia	2
- Outplacement (employees who left ST voluntarily to pursue work opportunities outside ST)	51
- Company creation	82
- Training (it concerns people who took the opportunity to return to school or university in view of moving to new activities)	18
- Personal project (private life choice, e.g.: family choice, departure abroad)	9
- Early-retirement GER*	29
- RITT-temporary worktime reduction	18

Restructuring plan results – Italy region
Total number of people involved	1271
Temporary contract expired	234
Departure with incentive
- Bridge to retirement (employees leaving will receive a pension within 3 years after their resignation)	200
- Early-retirement (while the employee could remain until the age of 65, he/she leaves the Company having attained the right for a seniority pension (35 years of contribution and+ 57 years old))	290
- Other (employees who accepted an incentive to leave the company instead of being transferred from Castelletto site to Agrate site)	25
Voluntary resignations (figure in line with the 2 years cumulate turnover of 2% that is the average each year)	422
Other initiatives (employees involved in the sale of ACCENT)	100

Restructuring plan results – Morocco
Total number of people involved	835
Transfer to another ST site (Bouskoura, Morocco)	376
Transfer to another activity within ST	169
Voluntary departure with compensation	214
Resignations or end of contract	76

Restructuring plan results – Toa Payoh – Singapore
Total number of people involved (still on going)	527
Operators transferred	63
Transfer to Ang Mo Kio site and Business headquarters	214
Re-skill and transfer ‘on going’	250

Total number of people involved all regions	3,631
(*) Gestion de l’Emploi dans le cadre des orientations de Restructuration, Restructuring manpower planning agreement 588
(**) Excluding internal mobility within same organization (manufacturing people from test activity)

Implementation of restructuring plan

In 2005 we reported that, due to our challenging economic context, we were obliged to carry out a restructuring plan involving redeployment and recruitment of engineers and a worforce reduction by about 3,000 positions: approximately 2,300 in Europe (1,200 in Italy and 1,000 in France), about 700 in the Mediterranean region and the remainder in other European countries and our Americas region.

Following on from the figures reported last year, we are now in a position to show the final status of the restructuring effort concerning workforce reduction. The table above shows that we stayed within/ below the projected figures of the plan, thanks notably to the extensive efforts of the affected sites and regions to ensure a responsible approach to restructuring. For more details on these initiatives, see Restructuring plan finalization.