STMicroelectronics N.V. provides summary information regarding repurchases of
its 2010 Bonds from January 1, 2003 through September 16, 2003 and the
associated charges and expected interest expense savings.
First Quarter      Second Quarter     Third Quarter 2003                 Total
2003               2003          (through Sep. 16, 2003)     (Year-to-Date 2003)
Aggregate principal amount at            $428,770,000        $214,000,000       $940,209,000               $1,582,979,000
maturity of repurchased 2010 Bonds......
As a percentage of total amount of              19.98%               9.97%             43.81%                       73.77%
2010 Bonds initially issued.............
Purchase price paid (in millions).......       $328.2              $167.4             $736.9                     $1,232.6
Financial Impact (in millions):
Loss on extinguishment of                    $(8.4)              $(6.4)            $(21.6)                      $(36.3)
convertible debt.....................
Estimated net savings in interest expense
from repurchase date to year-end 2003(1)        $6                  $3                 $7                          $16
Estimated net savings in interest expense
in 2004(1)............................         $10                  $4                $20                          $34
NB:  Certain amounts have been rounded.
(1) Based on management's estimate of interest rates.
Based on market conditions, the Company may proceed with further repurchases of
its 2010 Bonds in accordance with applicable laws, regulations and stock
exchange requirements.
Statements regarding our estimates of charges and additional interest expense
are forward-looking statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These forward looking
statements are based on management's current expectations, views, beliefs and
assumptions as of the date of this report. Such statements are subject to
various risks and uncertainties, which may cause actual results and performance
of the Company's business to differ materially and adversely from the
forward-looking statements. Factors which may cause actual results or
performance to differ materially from the expectations of the Company or its
management include changes in interest rates and accounting treatment of
securities. A more detailed discussion of these factors and the other "Risk
Factors", which may from time to time materially and adversely affect the
Company, is contained in our Annual Report or Form 20-F of the year ended
December 31, 2002, which was filed with the SEC on March 14, 2003 (the "Form
20-F"), which may be updated from time-to-time. The Company's Risk Factors were
most recently updated from the Form 20-F in its report on Form 6-K as filed with
the SEC on August 1, 2003.