STMicroelectronics and NXP to form joint venture

Telecomworldwire, June 27, 2008

TELECOMWORLDWIRE-27 June 2008-STMicroelectronics and NXP to form joint venture(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

STMicroelectronics (NYSE: STM), a provider of advanced solutions for mobile products, and NXP, an independent semiconductor company founded by Philips, announced on Thursday (26 June) the formation of a new joint venture, ST-NXP Wireless.

ST-NXP Wireless, which has been created from the mobile and wireless businesses of STMicroelectronics and NXP, will begin operations to meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies.

NXP and STM's mobile and wireless businesses together generated USD3bn ion revenues in 2007.

The full closure of the joint venture is scheduled to occur in the third quarter of 2008.

The companies also announced the management team of ST-NXP Wireless, which will reportedly be comprised of experienced leaders from both parent companies.

Alain Dutheil, presently chief operating officer (COO) of STMicroelectronics, will lead ST-NXP Wireless as chief executive officer (CEO), focusing exclusively on the new joint venture.

The executive committee of ST-NXP Wireless, led by Dutheil, will include Abhijit Bhattacharya, currently financial controller, Multimarket Semiconductors Business Unit, NXP. Bhattacharya has been nominated to take the position of chief financial officer of the joint venture

The comittee will also include Tommi Uhari, current executive vice president and general manager of Mobile, Multimedia & Communications Group, STMicroelectronics; and Marc Cetto, currently executive vice president and general manager of Mobile & Personal Business Unit, NXP.

Financial derails of the joint venture were not available.

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