Agreement will provide critical semiconductor drive chips for emerging display technology products.

STMicroelectronics (NYSE: STM), one of the world’s largest semiconductor manufacturers, and Cambridge Display Technology (CDT, Cambridge, U.K.), the leading researcher and commercial developer of light emitting polymer (LEP) technology, and owner of the fundamental intellectual property for LEPs, announced today that they have signed an agreement to develop driver devices for LEP displays.

Under the terms of the agreement, CDT has licensed to STMicroelectronics full details related to the electrical performance characteristics and materials interface requirements of LEPs for the design and development of display driver devices that will be offered to LEP display manufacturers. ST and CDT will also evaluate display driver performance on test displays fabricated on CDT’s new pilot technology development line in Godmanchester, U.K. Joint marketing activities between the companies are planned to promote ST products developed under the agreement.

The goal of CDT and ST is to bring to the market a family of power-optimized and low-cost LEP drivers for portable electronics products including PDAs, mobile phones and new generation multimedia terminals. The first display IC devices will be dedicated to monochrome displays and are planned for introduction in Q3 2002. Additional plans include full color drivers for introduction by mid-2003 to coincide with the anticipated market entry of full color LEP displays using inkjet printing manufacturing technology.

Cooperation between the two companies has already started and will combine the expertise of CDT in LEP technology with ST’s know-how of displays in general, and drivers ICs in particular, in addition to ST’s expertise in leading-edge semiconductor manufacturing. ST’s technology portfolio includes its proprietary BCD (Bipolar-CMOS-DMOS) process, which will be used in the manufacturing of these jointly developed driver ICs.

“LEP drivers will be a new addition to ST’s family of imaging products, which includes CMOS image sensors, and LCD, CRT, and PDP display processors and drivers.  Cellular phones are one of the biggest potential markets for LEP displays, and ST’s expertise in the imaging chain, ranging from image capture to display, will allows us to optimize it by aiming at ‘best in class’ performance, quality and minimum cost by minimizing overheads across the complete application,” said Jean-Pierre Lusinchi, Group Vice President, General Manager of Imaging and Display Division of STMicroelectronics.

 “CDT is pleased to work with a company with STMicroelectronics’ record of technical innovation in semiconductor devices,” stated David Fyfe, CEO of CDT.  “The outcome of our joint efforts will deliver a critical part of the technology solutions that CDT is committed to providing to our licensees and partners.”

 “The importance of display drivers to the performance of flat panel displays (FPD) of all types cannot be over estimated,” explained Jeremy Burroughes, CDT’s CTO.  “Previous FPD technologies have suffered from a lack of sophisticated divers to deliver optimum display performance, resulting in market entry delay and lost opportunity. CDT’s position at the center of LEP development allows us to help define the driver road map and speed the commercialization of these critical components.”

The OLED (Organic LED) display market has been forecast to be worth as much as $4.4 billion in revenue by 2007. The OLED display market consists of a wide range of electronics products that includes mobile phones, PDAs, digital cameras, camcorders, microdisplays, and eventually personal computers and other consumer products.

About STMicroelectronics

STMicroelectronics, the world’s third largest independent semiconductor company, 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, 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 shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2001, the Company’s net revenues were $6.36 billion and net earnings were $257.1 million. Further information on ST can be found at www.st.com.

About CDT

Cambridge Display Technology (CDT) is a privately held company leading the research, development and commercialization of polymer technology for flat panel displays and lighting. CDT’s light emitting polymer (LEP) technology is targeted for use in a wide range of electronic display products used for information management, communications and entertainment. Features include reduced power consumption, size, thickness and weight, very wide viewing angle, superior video imaging performance and the potential to produce displays on plastic substrates. To date, licenses have been granted to Delta Optoelectronics, DuPont Displays, OSRAM, Philips, and Seiko-Epson, who have either announced imminent start of production or are actively implementing their manufacturing strategies.

CDT is promoting LEP technology development and speeding its commercialization through a global business strategy including co-developments with leading companies in a wide range of display and related technology areas. Founded in 1992, the company is headquartered in Cambridge, UK.