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STMicroelectronics

Francois GuibertExecutive Vice President

President, Greater China and South Asia Region

November 29, 2010 - Tokyo

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� The semiconductor industry is well positioned to grow in future years

� ST value driven by two major strategic transformations

� Product portfolio� Divestiture of flash complete

� Investment in wireless to translate into value driver

� Technology and Manufacturing towards an asset-lighter company

� Sales momentum with products and customers

� Expanded customer base

� Innovative products

�Execution in delivering targeted return on invested capital

� … supported by a strong capital structure and sustainable profitability model

A worldwide semiconductor leader positioned to capture higher value from the expected industry growth

ST Highlights

*At Sept. 25, 2010, includes cash of JV, cash restricted as collateral to third party’s obligation and non-current marketable securities (excluding Micron shares)

World leading positions in wireless, auto, industria l, consumer and computer peripherals end-markets

#1 European Semiconductor Company

Focus on multimedia applications, analog and power management

STMicroelectronics Today

Strong balance sheet: cash & cash equivalents of $2 .78B *

Key strategic alliances with global technology lead ers including: Bosch, Ericsson, HP, IBM, Nokia, Samsun g

The Evolution of ST

2010Completed the sale of Numonyx to Micron

2009ST and Ericsson created ST-Ericsson JV

2008Deconsolidation of Flash, acquired NXP Wireless, announced the JV with Ericsson Mobile Platforms

2005New CEO

2000Became #1 European semiconductor company

1999Entered world’s Top Ten semiconductor suppliers

1994IPO

1987Merger of SGS Microelettronica of Italy and Thomson Semiconducteurs of France

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� 15 main manufacturing sites

� Advanced R&D centers in 10 countries

� Over 51,000 employees, including

ST-Ericsson (Dec. 31, 2009)

� Listed on NYSE Euronext (New York &

Paris) and Milan stock exchanges

13%

America24%

EMEA45%

Greater China &

South Asia

18%

Japan & Korea

Q310 revenue: $2,657M

By location of order shipment

4STMicroelectronicsA Global Semiconductor Company

50/50 JV with Ericsson

Products

Major Customers

Automotive, Consumer, Computer &

Communication Infrastructure (“ACCI”)

Industrial and Multisegment Sector

(“IMS”)Wireless

Home Entertainment

& Displays

Computer & Communication Infrastructure

Automotive Products

Group

Analog, Power and

MEMS

Microcontrollers, Memories and

SmartcardsMajor Product Lines

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Business Segment Overview

NEW

ZEALAND

AUSTRALIA

PHILIPPINES

MALAYSIA

SINGAPORE

INDONESIA

HONG KONG

TAIWAN

CHINA

THAILAND VIETNAM

INDIA

>24,000 employees (~45% of ST Total)• ~19,000 in Manufacturing

• >5,000 in R&D, S&M, G&A and Product Groups

2009 Sales : US$5.1BQ3 2010 Sales : US$1.7BJapan & Korea HQ: TokyoGreater China & South Asia HQ: Singapore

2 Wafer Fabrication plants

4 Assembly & Test plants

24 Sales Offices

2 Asia Logistics Hub

All product group & central function teams

3 R&D / IC Design Centers• India, China, Singapore

• Headcount ~25% of ST Total R&D

Strong Presence in Asia6

KOREA

JAPAN

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Transforming the Product Portfolio

Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210

Wireless Mobile Platforms

Headcount

realignment

ST-Ericsson cost

realignment

ST-NXP

synergy plan

Manufacturing

restructuring

5 years

R&D grants

secured

50%

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Micron acquired

Numonyx

GenesisMicrochip

Reshaping ST ’s Product Portfolio

∙ High-value entry ∙ Smartphones∙ Connected devices

∙ Application engine∙ Modem ∙ Connectivity

∙ Diversified customer portfolio

∙ Open/complete platforms

∙ Global

• Entry & feature phones

• Modem only

• Three big customers

• Custom solutions

• Europe and Asia

2010 PrioritiesCompetitive cost structureTransition product portfolio

ST-Ericsson: Transforming the Company9

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Strategy Towards an Asset-Lighter Model

ST STRATEGY PATH:

IDM Flexible IDM Lighter Asset

17 14 9 8

NUMBER OF FRONT END FABS:

2005 end 2010

WAFER PROBING (EWS):

From Europe to a major WW center in Singapore

ASSEMBLY – NUMBER OF PLANTS:In Mediterranean :In Asia:

3 3 (1 China)

24 (2 China) Expand Asia

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ST Manufacturing EvolutionCapex to sales of

about 7% through a

cycle

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Q409 vs. Q410Increase in total

capacity including foundry = ~20%

Key Initiatives to Increase Capacity - 2010

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Business Momentum:New Products & Customer Expansion

US$M

Q4 2010 guidance range

* See appendix

Q310 Revenues = $2,657M

• +5.0% sequentially, with IMS, ACCI and Wireless growing 7%, 4% and 4% respectively

• +16.8% y-o-y, growth in all regions and market segments, excluding Telecom

• Q410 guidance: between +2% and +7% sequentially

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ST Q310 Revenues

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Apple

Bosch

Cisco/Scientific Atlanta

Continental

HP

Nokia

Research in Motion

Samsung

Seagate

Sony Ericsson

Top 10 OEM Customers YTD 2010 (listed alphabetically)

Top Customers

MEMS

� High-volume sales of three-axis gyroscopesspreading into mobile phone and gaming platforms

� Ramping up volume production of 3-axis accelerometer for new MP3 player from a leading consumer manufacturer

� Introduction of high-performance, low-power, stereo MEMS microphone targeting existing and emerging audio applications across a range of market segments

High-Performance Analog

� Design win for radiation-hardened op-amps for the Galileo European navigation satellite system

� Ramping volume of Synchronous Rectification Controller for computer applications

Microcontrollers

� 32-bit STM32 microcontrollers shipping in volumes to a major OEM for gaming accessories

� Design-ins of the 32-bit microcontroller family at world leading OEMs in healthcare, smart metering and high-end SIM card applications

Power

� Controller IC gained the major share in a switched-mode power-supply design for a new LED-backlit TV in Korea

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Q310 IMS Products and Wins

Automotive Electronics

� First major award for EyeQ3, ST’s third-generation vision processor for safety applications from a major European car maker

� Strengthened leadership in “door zone”applications with a design win for a new device embedding “Partial Networking” IP, a potentially significant contributor to reductions in cost and CO2emissions

� Important design win for a smart gate-driver IC in a world-leading power-steering platform, breaking 15 years of dominance of the major competitor in this field

Automotive Infotainment

� Leadership strengthened in car radio applications with a major design win from a leading maker of tuners and power amplifiers in Japan

Digital Consumer

� Major design win at Sagemcom for ST’s 7108 advanced broadcast/broadband Set-Top-Box decoder SoC

� Expansion of the “Freeman” family with the launch of three highly integrated digital TV SoCs enabling enhanced user experience and new Internet TV services

� Major design win for DisplayPort and TV scaler technology from a tier-one OEM

Computer peripherals

� Design win for a new 32nm ASIC from a world leader in high-speed and high-precision instrumentation applications

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Q310 ACCI Products and Wins

• U8500 programs reached all major milestones agreed with customers

• Lead partners for ARM’s Cortex-A15 MPCore processor

• Over 100 million 2G/EDGE shipments year-to-date

• Over 15 million TD-SCDMA shipments since launch

• New HSPA+ 21 Mbps modem, M5730, in commercial devices early 2011

• M570 and M34x modems in Ericsson’s mobile broadband modules

for tablets and notebooks

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Q310 ST-Ericsson Products and Wins

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Financial Results and Capital Structure

In US$M, except EPSQ309 Q210 Q310 YTD

2009YTD 2010

Net Revenues 2,275 2,531 2,657 5,927 7,513

Gross Margin 31.3% 38.3% 39.2% 28.2% 38.4%

Adjusted Operating Profit*Adjusted Operating Margin*

Attributable to ST**

(143)(6.3%)(4.8%)

1034.1%7.7%

2208.3%

11.6%

(822)(13.9%)(12.4%)

3354.5%8.0%

Net Income – Reported (201) 356 198 (1,061) 611

EPS DilutedAdjusted EPS Diluted*

(0.23)(0.17)

0.390.18

0.220.23

(1.21)(0.76)

0.680.48

Net Operating Cash Flow before M&A**

100 212 228 6 616

Effective Exchange Rate €/$ 1.38 1.35 1.34 1.35 1.36

* See next slide

** See appendix

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Financial Performance

In US$MQ309 Q210 Q310 YTD

2009YTD 2010

U.S. GAAP Net Earnings (201) 356 198 (1,061) 611

Impairment & Restructuring Charges(attributable to ST**)

45 8 18 176 48

Numonyx ImpairmentOTTICEquity Investment DivestitureEstimated Income Tax effect of Adjustment

3(265)

60 (5)

20072

(50)(265)

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Adjusted Net Earnings* (153) 159 211 (663) 432

* See appendix

** Total Impairment & Restructuring Charges were $53M in Q309, $12M in Q210 and $27M in Q310. YTD09 and YTD10 were respectively $195M and $72M.

OP

ER

AT

ING

RE

SU

LT

NE

T E

AR

NIN

GS

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Pre-Tax Items to Adjusted Earnings*

Net Operating Cash Flow (ex M&A)

* See appendix

US$M

Net Operating Cash Flow*22

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Dividend increased to $0.28 per share representing ~3.2 % yield*

Dividend Yield as ofNovember 15, 2010:

* 2009 annualized dividend is payable in four equal installments: May, August and November 2010 and February 2011.

** Source: Thomson Reuters

Dividend Evolution

* See appendix

** Includes cash of JV, cash restricted as collateral to third party’s obligation and non-current marketable securities (excluding Micron shares)

End of period(US$M)

Sept. 26, 2009 Jun. 26, 2010 Sept. 25, 2010

Available Cash(excluding Micron shares)

2,321 2,384 2,629

Restricted Cash and Non-current Marketable Securities**

630 347 151

Total Liquidity 2,951 2,731 2,780

Total Financial Debt (2,685) (2,029) (1,902)

Net Financial Position 266 702 878

Further opportunities:

• Sale of Micron shares

• Collection of proceeds from FINRA award

Net Financial Position*24

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ST’s Financial Model, Challenges & Value Drivers

TargetOperating Margin*

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OpEx LeverageNew ProductsManufacturingRestructuring

Currency

Price

* Operating margin attributable to ST before restructuring charges: not a GAAP measure, see appendix.

4.0%

Q110 | Q210Operating Margin

Attributable to ST *

Q310:19% RONA attributable

to ST7.7%

Q310 Operating Margin Attributable to ST*

11.6%

Targeting :12%-18% RONA

or16%-22% RONA

attributable to ST

Continued Progress Toward Targets

Return on Net Assets (%)

* See appendix

** w/o NXP acquisition-related one-time IP/inventory

%

Return on Net Assets*27

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Shareholders Value Proposition

� Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such statements due to, among other factors:

� Changes in demand in the key application markets and from key customers served by our products, which make it extremely difficult to accurately forecast and plan our future business activities. In particular, following a period of significant order cancellations in 2009, we have in 2010 experienced a strong surge in customer demand, which has led to capacity constraints in certain applications and may in the future, in case of excessive inventory at customers or distribution channels, experience order cancellations;

� our ability to utilize and operate our manufacturing facilities at sufficient levels to cover fixed operating costs during periods of reduced customer demand, as well as our ability to ramp up production efficiently and rapidly to respond to increased customer demand, in an intensely cyclical and competitive industry, and the financial impact of obsolete or excess inventories if actual demand differs from our expectations;

� the operations of the ST-Ericsson Wireless joint venture, which represents a significant investment and risk for our business and which may lead to significant additional impairment and restructuring charges, in the event ST-Ericsson is unable to successfully compete in a rapidly changing and increasingly competitive market;

� our ability to compete in the semiconductor industry since a high percentage of our costs are fixed and are incurred in Euros and other currencies than U.S. dollars, especially in light of the increasing volatility in the foreign exchange markets and, more particularly, in the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;

� the outcome of ongoing litigation as well as any new litigation to which we may become a defendant;

� changes in our overall tax position as a result of changes in tax laws or the outcome of tax audits, and our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;

� the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;

� product warranty or liability claims based on epidemic failures or recalls by our customers for a product containing one of our parts;

� our ability in an intensively competitive environment to secure customer acceptance and to achieve our pricing expectations for high-volume supplies of new products in whose development we have been, or are currently, investing;

� changes in the political, social or economic environment, including as a result of military conflict, social unrest and/or terrorist activities, economic turmoil, as well as natural events such as severe weather, health risks, epidemics, earthquakes, volcano eruptions or other acts of nature in, or affecting, the countries in which we, our key customers or our suppliers, operate.

� Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “are expected to,” ”, “should,” “would be,” “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

� Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2009, as filed with the SEC on March 10, 2010. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

Forward Looking Statements29

� Net operating cash flow is defined as net cash from operating activities minus net cash used in investing activities, excluding payment for purchases of and proceeds from the sale of marketable securities (both current and non-current), short-term deposits and restricted cash. We believe net operating cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Net operating cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of net operating cash flow may differ from definitions used by other companies

� Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash equivalents, net of bank overdrafts, if any, current and non-current marketable securities excluding Micron shares received in connection with the sales of Numonyx, short-term deposits and non-current restricted cash, and our total financial debt includes the current portion of long-term debt and long-term debt, all as reported in our consolidated balance sheet. We believe our net financial position provides useful information for investors because it gives evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.

� Return on Net Assets (RONA) is the ratio of operating income before impairment and restructuring charges divided by average net assets used during the period. ST defines average net assets as average total assets net of total liabilities as reported in our consolidated balance sheet excluding all items related to our financial position such as cash and cash equivalents, marketable securities, short term deposits, bank overdrafts, current portion of long term debt and long term debt.

� Adjusted operating income (loss) excludes impairment, restructuring charges and other related closure costs.

� Adjusted operating income attributable to ST is calculated as adjusted operating income (loss) excluding 50% of ST-Ericsson operating income (loss) before restructuring as consolidated by ST. Adjusted operating margin attributable to ST is calculated as adjusted operating income attributable to ST divided by reported revenues excluding 50% of ST-Ericsson revenues as consolidated by ST. Return on Net Assets (RONA) attributable to ST is calculated as annualized adjusted operating income attributable to ST divided by reported net assets excluding 50% of ST-Ericsson net assets as consolidated by ST.

� Adjusted net earnings and earnings per share (EPS) are used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted earnings exclude impairment, restructuring charges and other related closure costs attributable to ST, the impact of equity investment divestiture, other-than-temporary impairment (OTTI) charges on financial assets, net of the relevant tax impact.

� Key Information on Consolidation / Deconsolidation:

� ST completed the deconsolidation of its Flash Memory Group (FMG) segment and took an equity interest in Numonyx on March 30, 2008. Numonyx was sold to Micron on May 7, 2010.

� ST-NXP Wireless, a joint venture initially owned 80% by ST, began operations on August 2, 2008 and was fully consolidated into ST’s operating results. On February 1, 2009 and prior to the closing of the merger of ST-NXP Wireless and Ericsson Mobile Platforms to create ST-Ericsson, ST exercised its option to buy out NXP’s 20% ownership stake of ST-NXP Wireless.

� ST-Ericsson, a joint venture owned 50% by ST, began operations on February 3, 2009 and is consolidated into ST’s operating results as of that date. ST-Ericsson is led by a development and marketing company and is consolidated by ST. A separate platform design company providing platform designs mostly to the development and marketing company is accounted for by ST using the equity method.

� Wireless Segment: As of February 3, 2009, “Wireless” includes the portion of sales and operating results of the 50/50 ST-Ericsson joint venture as consolidated in the Company’s revenues and operating results, as well as other items affecting operating results related to the wireless business.

� Sales recorded by ST-Ericsson and consolidated by S T are included in Telecom and Distribution

Appendix 30