Powerful high-definition STB decoder builds on the popular predecessor ICs, and adds HDCP security for DVI/HDMI interfaces, plus AAC audio and HiSpeed USB

Geneva, September 14, 2004 - STMicroelectronics (NYSE: STM) has announced the most highly integrated single-chip solution yet for high definition STBs (Set-top Boxes), the STi7710. Effectively combining the functions of ST's successful and popular STi7020 HDTV (High Definition TV) decoder IC, and the STi5517 Omega decoder - and integrating on-chip additional features such as Hi-Speed USB and a High-bandwidth Digital Content Protection (HDCP) processor - the new IC will be easier and cheaper to design in, yet will provide more sophisticated features for consumers and greater security for content providers.

ST is the world's largest supplier of MPEG-2 decoder silicon chips for set-top boxes2, with around 77% market share. This highly integrated System-on-Chip (SoC) decoder will reduce costs for manufacturers of high-definition STBs for the established US market and in the Far East and Australia, and will further encourage the emerging market for HDTV in Europe. "We expect the market for high-definition set-top boxes to reach 12 million units in 2008," said In-Stat/MDR Analyst Michelle Abraham. "Devices such as the STi7710 provide consumer-electronics manufacturers with all the features they need to build successful and cost-effective products."

Commenting on the European market, Gabriel Fehervari, CEO of Euro1080 - the first channel to broadcast exclusively in High Definition throughout Europe - said: "One of the enablers for the HDTV market in Europe is the availability of low-cost set-top boxes. The STi7710 provides the high-performance CPU and video-decoding functions required by these devices at a very attractive price point. We look forward to the deployment of STBs based on this new chip in the near future."

The new IC's integrated High-bandwidth Digital Content Protection (HDCP1) module secures the digital interface to an HDCP-enabled TV set and protects the high-quality, high-value intellectual property (IP) of program producers by authenticating and monitoring decryption keys. The widely accepted HDCP specification provides a robust but transparent method of transmitting encrypted digital entertainment content to DVI-compliant digital displays, without compromising the convenience for the viewer of legitimate copying or timeshifting.

The STi7710 provides both Digital Video Interface (DVI) and High Definition Multimedia Interface (HDMI) display interfaces to ensure STB output flexibility at minimum system cost, and offers improved audio capability at low bit rates through an embedded Advanced Audio Coding (AAC) decoder. HDMI builds on DVI to create the highest performance TV interface standard to date, with enhanced video performance and the capability to carry up to eight channels of 192kHz audio. The chip also includes SRS TruSurround XT, an advanced audio technology from SRS Labs Inc., which delivers cinema-quality virtual surround sound over two-speaker television or entertainment systems, and other audio features.

An embedded Hi-Speed USB Host - operating at 480-Mbits/second, 40-times faster than the USB 1.1 standard - will allow peripherals to be added easily to a basic STB in order to provide additional functionality. In particular, it could allow a consumer to purchase the STB and add a hard-disk drive at a later date to turn the box into a Digital Video Recorder (DVR). Viewers increasingly use digital video recording for timeshifting programs while preserving video quality, and the interface will enable STB manufacturers to offer consumers a low-cost upgrade path. Other peripherals that could be connected to a set-top box through the USB interface, using suitable drivers, include digital cameras, printers, and memory cards.

"The remarkable level of integration in the STi7710 provides manufacturers with a true HDTV set-top box solution in a single chip," said Christos Lagomichos, General Manager of ST's Home Entertainment Group. "It includes all the necessary video and audio decoders for now and the immediate future, plus HDCP security, a range of interfaces, and expansion capability through Hi-Speed USB."

ST offers a complete software solution for US high-definition markets, where provision of specific features - including Closed Captioning (to EIA-708-B) and the Program and System Information Protocol (PSIP) - is mandated by the FCC; STB manufacturers can choose to license software from ST or from alternative suppliers. Software porting from earlier products is simplified by the STAPI software package, a fully supported and documented programming interface developed by ST as a stable base on which to build applications. It will continue to be available on future chipsets, enabling software portability to next generation devices.

The CPU core of the STi7710 is a high-performance ST20, the dominant CPU in the STB market. It is the fastest version yet, and supports all current middleware in the STB market with power to spare for future software enhancements. A unified memory interface, with DDR (Double Data Rate) SDRAM support, optimizes the use of RAM chips and further increases performance, while an embedded high-performance graphics engine supports graphics-intensive tasks such as the channel's presentation of programmes. An innovative system for flexible routing of video streams from different sources simplifies transport stream management software and improves reliability.

Samples of the STi7710 are available now, and volume production is planned for Q1 2005 at an anticipated high volume price of $18.

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 2003, the Company's net revenues were $7.24 billion and net earnings were $253 million. Further information on ST can be found at www.st.com.

1 The High-bandwidth Digital Content Protection (HDCP) specification was developed by Intel Corporation
2 In-Stat/MDR - MPEG Video ICs: The Promise of MPEG-4 - June 2004 (Report Number: IN0401230MI)