STMicroelectronics and Automotive Communications Systems Announce Intention to Jointly Develop Chips for Vehicle and Infrastructure Integration Initiative

STMicroelectronics (NYSE: STM) and Automotive Communications Systems (ACS), today announced plans to jointly develop communications integrated circuits for Vehicle and Infrastructure Integration (VII).

The VII initiative is investigating the potential safety benefits of car-to-car and car-to-roadside high-speed communications. Contributors to VII activities include the US Federal Government, state governments, the world's leading car companies, suppliers, consultants, and others. If successful, the automotive OEMs would roll out on-board equipment on all new vehicles sold in North America and the Federal Government will install infrastructure on major roadways. This program is part of a plan to significantly improve roadway safety and utilization, lower travel times, and provide unprecedented access to information for the driving public.

As a longtime leader in automotive electronics and semiconductor manufacturing, STMicroelectronics brings to the relationship significant technology and product expertise in the automotive semiconductor arena as well as communications and location expertise. ACS brings a patent pending architecture for resolving some of the major challenges facing the VII initiative such as channel access, reliability of communications, and precision vehicle location at a much lower cost than current solutions.

"There is clearly enormous potential for the technology that ACS brings to solving problems facing the VII program," said Ugo Carena, Corporate VP and General Manager, Automotive Products Group, STMicroelectronics. "STMicroelectronics' capability in automotive, wireless communication, and location, coupled with ACS' technology will provide significant advantages to the government, auto companies, and their suppliers."

"We are excited to be working with a company as well known and capable as STMicroelectronics," said Milt Baker, CEO of ACS. "The synergy of our technology along with STMicroelectronics' technology and products will be a key contributor to VII."

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 2006, the Company's net revenues were $9.85 billion and net earnings were $782 million. Further information on ST can be found at http://www.st.com.

About ACS

ACS headquartered in Ann Arbor, MI, and with facilities in Boston, MA, has a patent pending on a new and improved vehicle to vehicle and vehicle to infrastructure communications architecture which address three of the major challenges facing the VII initiative: 1) statistically determinant channel access necessary for safety systems, 2) robust communications in a multipath environment and 3) precision vehicle location (within 1 foot resolution).