World First for Sagem Communication and STMicroelectronics: First MPEG4 Set-Top Boxes Based on Single-Chip Video Decoder

– Sagem Communication (SAFRAN Group) and STMicroelectronics (NYSE: STM) today announced the immediate availability of the world’s first MPEG4 set-top boxes (STBs) based on a single-chip decoder. The new advanced range of STBs from Sagem employs ST’s next-generation MPEG4 decoder chip for high-definition TV (HDTV), the STB7100.

When compared to today’s industry-standard MPEG2 video compression technology, the use of MPEG4 compression technology will enable broadcasters and service operators, using their existing broadcast network, to offer end users HDTV and/or many more TV channels.

The first two STBs available in the new family are standard-definition (SDTV) models, the SAGEM ITD80 ITD80for Pay and Free-to-air DTT (digital terrestrial TV) broadcast reception, selected by CANAL+, and the ITAD80SAGEM ITAD80 for both IPTV (Internet Protocol Television) and Free-to-air DTT, already selected by several operators. Before the end of this year, Sagem will expand its new MPEG4 range of STBs, all based on ST’s STB7100 decoder family, to include new HDTV-capable models for all transmission media (satellite, cable, terrestrial, and IP).

Sagem expects its total shipments of MPEG4 STBs to reach at least 100,000 units by the end of 2005, which will confirm both Sagem’s and ST’s place as the leading suppliers of MPEG4 decoding solutions for all transmission media, and for both SDTV and HDTV.

“We are proud to announce Sagem’s new MPEG4 family of set-top boxes with ST’s integrated MPEG4 decoder,” said Grégoire Olivier, CEO of Sagem Communication. “This family of STBs will allow Sagem to deliver a cost-effective, reliable next-generation range of products to service operators worldwide, offering end users state-of-the-art technology for tomorrow’s TV.”

Implemented in ST’s leading-edge 90nm process technology, the STB7100 single-chip MPEG4 decoder embeds all the major functions of a STB in a single device, including a high-performance CPU, video-decoding circuitry, and a wide range of peripheral devices.

“We are delighted that Sagem has selected the STB7100 for its new MPEG4 set-top box range and we are confident that it will prove to be a successful platform,” said Carlo Bozotti, President and CEO of STMicroelectronics. “ST’s cutting-edge single-chip solution for MPEG4 decoding will allow the company to translate its status as the leading supplier of set-top box ICs into the rapidly growing MPEG4 market.”

Sagem entered in the STB business in 1989 by manufacturing analog decoders with digital conditional access, and launched its first digital set-top boxes in 1996. Today, Sagem is Europe’s leading STB manufacturer for digital terrestrial and IP TV, thanks to a wide range of products, from basic low-end STBs with limited functionality – also known as ‘zapper’ boxes – to advanced twin-tuner digital TV receivers with integrated Hard Disk Drive (Personal Video Recorders).

ST launched the world’s first integrated MPEG2 decoder STB chips in the mid 1990s, which paved the way for the enormous growth of the STB market. As a result of its success in MPEG2 decoders, the company’s STB platforms today hold a worldwide market share of more than 70% (*).

SagemAbout Sagem Communication
Sagem Communication (SAFRAN Group) is a major player in the Mobile and Broadband Communication industries, who has acquired a strong world-wide position thanks to renewed innovation. SAGEM products stand-out particularly in the following activities: mobile phones, printing terminals, residential terminals, digital TV, networks, electronic metering and cables, etc.

For more information, please visit our Web sites: www.sagem.com and www.safran-group.com

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.