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STMicroelectronics Demonstrates Ethernet over VDSL in the First Mile at IEEE Plenary Meeting

ST solution proves implementation of the technical specifications of the IEEE P802.3ah draft standard

Geneva, July 30, 2003 - STMicroelectronics (NYSE:STM) has announced completion of a technical feasibility demonstration for Ethernet over VDSL (EoVDSL) in the First Mile (EFM) at the IEEE802 plenary meeting in San Francisco last week. This was the first public demonstration by ST to prove the feasibility of a proposed specification by the IEEE, called Draft P802.3ah.

Traditional DSL deployments have used ATM framing as the physical interface for copper in the last mile; however, recent interest has shifted towards deployment over Ethernet. Because VDSL has much higher bit rates, VDSL is the xDSL flavor best suited for native packet transport. Additionally, ATM is not the easiest interface for a home network environment and Ethernet is extremely cost effective for delivering voice and data communication to the home.

"VDSL eliminates the bottleneck issues in the last mile that plague today's networks," said Leon Cloetens, General Manager of STMicroelectronics' Telecom Access Division. "By deploying Ethernet over VDSL, you are able to deliver up to 100Mbps to the home at reduced install and management costs. All of this while adding Ethernet-specific features, like robust/fixed overhead encapsulation, and an optional mechanism for operation over multiple pairs, called PMI aggregation."

About ST's VDSL Solution

The VDSL chipset was introduced in March 2003 and delivers aggregate bit rates in excess of 100Mbps over short loops and delivers outstanding reach in all conditions. Designed for both central-office and customer-premises-equipment applications, the chipset integrates a complete Frequency-Division-Duplex DMT VDSL modem from the line to the data interface in just two chips, the STLC90115 Discrete Multi-Tone-Modulation (DMT) Processor and the STLC90114 Integrated Analog Front End. The chipset supports all of the international VDSL-DMT standards (ITU-T, T1e1.4, ETSI) and is compliant with the 997, 998 and Flex frequency plans.

To ensure interoperability of DMT VDSL equipment from different manufacturers, ST participates with other chipset vendor- in initiatives to ensure that DMT chipsets will work with each other. This interoperability has already been demonstrated in March 2003 between ST and Ikanos. Furthermore, independent test labs Telecordia and BT Exact evaluated Chipsets for both DMT and QAM VDSL independently for two months during an event called the VDSL Olympics. The results of this testing were presented at the T1e1.4 interim meeting in Anaheim, CA, 18-19 June 2003. Results of this testing concluded that DMT line-code solutions performed better than the QAM solutions. In addition, the ST chipset performed better than all rival chipsets.

About ST's xDSL Portfolio
With over 50 million ports shipped, ST's xDSL products are the most commonly integrated and widely deployed in the market. ST's solutions give equipment manufacturers a complete, cost-effective, and flexible method of incorporating proven, high-performance ADSL technology into their products. Blue-chip equipment manufacturers use ST products across client equipment, central office, and router segments and offer optimized packages to meet the specific needs of customers in various market segments.

The VDSL chipset is shipping now. Evaluation boards and a complete modem reference design are also available.

For more information, please visit: www.st.com/VDSL

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 2002, the Company's net revenues were $6.32 billion and net earnings were $429.4 million. Further information on ST can be found at http://www.st.com.


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