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STMicroelectronics and HDIC Joint Venture Releases Flexible Digital TV Middleware Supporting Chinese and International Markets

Total middleware solution offers interactivity, flexibility and extendability to TV operators

Geneva, November 1, 2005 – STMicroelectronics (NYSE: STM)
today announced that affiliate company Shanghai-BMC – a joint venture between ST and Jiaotong University subsidiary HDIC – has released its complete MBT middleware solution for TV set-top boxes (STBs) intended for the Chinese market, as well as for international operators. ST is the world’s largest supplier of ICs for STBs.

Set-top box middleware is an embedded software solution, rather like a PC operating system, that enables operators to run the same applications on STBs from different manufacturers, regardless of the underlying hardware. Typical interactive STB applications include Electronic Program Guide (EPG), customer care software, games, weather display, e-commerce, enhanced TV and interactive advertising.

The MBT (‘Media Beacon Tower’) System Technology TV middleware has been developed over several years by HDIC, alongside its head-end solution for use by the TV operators, and has been enhanced and brought to market by the S-BMC joint venture. S-BMC is the first vendor to offer a complete solution for the fast-growing Chinese DTV market. This Java-based middleware supports Chinese and international standards, including MHP (Multimedia Home Platform) and OCAP (Open Cable Application Platform), and has already been adopted and deployed by some operators in China.

Compared to a competitive HTML-based solution, MBT provides TV operators with exceptional flexibility in enabling them to run multiple Java applications – with complex interactivity where required – and with the ability to download new applications and new software versions using the DSM-CC (Digital Storage Media Command and Control) protocol. In addition its open interface with the device drivers simplifies the development of third party applications that add value to the package. The middleware supports multiple standards ‘out of the box’, against the single-standard browser solution.

This new STB solution is compliant with MPEG-2, DAVIC/DVB, DTVM and other standards. It supports Java applications under Java ME (Java 2 Platform, Micro Edition), the collection of Java APIs targeting embedded consumer products, and its layered architecture and modular design provide open and uniform interfaces with both the real time operating system and with the STB drivers, for true hardware independence.

“Digital broadcasting is really taking off in China, creating demand for new digital set top boxes and DTVs,” said Bob Krysiak, Corporate Vice President and General Manager for the Greater China Region. “China is a key market for us and ST is committed to investing both time and significant resources with key partners to grow the Chinese market.”

About S-BMC
Shanghai Blue Media Software Technology Company Ltd. (S-BMC) is a joint venture between STMicroelectronics, which owns 65%, and HDIC (Shanghai High-Definition Digital Technology Innovation Center), a subsidiary of the prestigious Shanghai Jiaotong University, owning 35%. The joint venture was announced in October 2004 and S-BMC was incorporated in March 2005. S-BMC develops software technologies for digital TV and offers the MBT middleware solution.

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 2004, the Company's net revenues were $8.76 billion and net earnings were $601 million. Further information on ST can be found at www.st.com.






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