Intel and STMicroelectronics Sign New Patent Cross-License Agreement

Business Wire, Feb 25, 1999

GENEVA--(BUSINESS WIRE)--Feb. 25, 1999--Intel Corporation and STMicroelectronics, NV today announced the signing of a broad, worldwide, cross-license agreement that allows each company to use intellectual property covered by the other's patents. The new agreement replaces an existing license agreement originally signed between Intel and Mostek Corporation in 1977. STMicroelectronics, Inc., the US subsidiary of STMicroelectronics, NV, eventually acquired Mostek's rights through a series of merger and acquisition transactions.

The new agreement, which does not involve any financial transaction between the two companies, will last for five years. It puts an end to various disputes between Intel and STMicroelectronics related to the previous license agreement and, as a consequence, Intel and STMicroelectronics will dismiss the various lawsuits currently pending between them.

"The patent cross license agreement announced today between STMicroelectronics and Intel continues our stated objective of negotiating patent licenses with major semiconductor companies throughout the world. I am pleased that it ends years of costly litigation and provides the opportunity for our respective companies to work more closely together in the future in many areas of joint interest," said Pasquale Pistorio, President and CEO of STMicroelectronics. Pistorio also noted that ST filed a record number of 671 new patent applications in 1998, 20% higher than in 1997.

"This new agreement gives engineers from both Intel and ST design freedom as we develop new products," said Craig Barrett, President and CEO of Intel. "Patents and other intellectual property are the cornerstones of our industry and we believe both companies will be in a position to better serve their customers on a worldwide basis."

STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Bourse de Paris and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. Further information on ST can be found at www.st.com.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information is available at http://www.intel.com.