Geneva, November 30, 2006 - STMicroelectronics (NYSE: STM) informs that, following a criminal complaint filed by the Company in September with the authorities in Lugano(Switzerland) after findings of an internal audit, the Prosecutor of Lugano is presently conducting a criminal investigation pursuant to alleged fraudulent activities in certain currency transactions entered into between 1998 and 2005 by ST’s former Treasurer, who retired from the company at the end of 2005. ST is fully cooperating with the Prosecutor in connection with the investigation.

ST confirms that the transactions under investigation were discontinued at the end of 2005. Furthermore, ST has concluded that such transactions do not have a material impact on the Company or on its previously published financial statements.

With the implementation of organizational changes in its treasury department, and of measures designed to enhance its internal controls in the treasury activity, ST believes it has taken the necessary measures to prevent similar actions from arising in the future.

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 2005, the Company’s net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at www.st.com.