REPEAT/Saltare Announces Deployment of Its Software by STMicroelectronics to Dynamically Manage Customers' Inventory, Replenishment and Distribution Activities

Business Wire, April 10, 2002

Business Editors/High-Tech Writers

REPEATING...inserting ticker symbol

SAN MATEO, Calif.--(BUSINESS WIRE)--April 10, 2002

World's Third Largest Independent Semiconductor Company

Deploys Saltare Leap for Real-Time Inventory Visibility and

Intelligent Demand Replenishment Capabilities

Saltare, Inc., a leading provider of adaptive supply chain management solutions that intelligently address real-time inventory management throughout the supply network, today announced that STMicroelectronics (NYSE:STM) has deployed the Saltare Leap Intelligent Demand Replenishment (IDR) application to dynamically manage customers' inventory, replenishment and distribution activities. The world's third largest independent semiconductor company selected Saltare Leap IDR, which is one of the modules of the Saltare Leap Adaptive Inventory Control (AIC) software, as part of its overall e-Supply Chain Management (e-SCM) RosettaNet compliant solution to reduce inventory management costs, optimize utilization of manufacturing and logistics capabilities, improve revenue control, and enhance customer satisfaction.

STMicroelectronics (ST), which also manages the on-site inventory of ST-supplied components for many of its customers, required real-time visibility of inventory and consumption levels at multiple customer locations to provide the highest level of service without increasing costs. ST implemented the Saltare Leap IDR application to provide much-needed visibility into inventory and consumption levels, enabling the company to use the real-time data to optimize replenishment plans and synchronize fulfillment with actual demand.

"STMicroelectronics is committed to delivering customers leading-edge products and solutions along with higher service levels," said Gilles Sanchez, corporate supply chain concept owner at STMicroelectronics. "Saltare gives us real-time visibility into our global inventory and our ST customers' distributed inventories, providing us the flexibility and intelligence to proactively address changes to not only our business, but our customers' businesses as well. As a result, we are much smarter and faster about how we service our customers."

ST collaborates closely with its customers by manufacturing, allocating and replenishing products based on demand forecasts. The Saltare Leap IDR module enables ST to dynamically manage inventory levels and optimize performance by monitoring and intelligently resolving exceptions to forecasted customer consumption plans before they impact business. Based both on planned and actual demand information, Saltare Leap IDR allows ST to manage the risks of holding inventory at both company and customer sites by continually updating correct inventory levels and optimizing replenishment plans.

"STMicroelectronics is a global leader in the semiconductor industry because it understands the critical role supply chain visibility and optimization play in elevating a company's performance," said Dr. Cosimo Spera, co-founder and CEO of Saltare, Inc. "Saltare delivered to STMicroelectronics a unique value proposition that allows them to dynamically manage company and customer inventory so that they can continue to maximize profitable growth."

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, 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 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 Saltare Leap

Saltare Leap is a suite of adaptive supply chain management applications specifically designed to intelligently address real-time inventory management and capacity allocation throughout the supply chain. Saltare Leap strategically deploys software engines that monitor and detect events throughout the supply network and intelligently respond by quickly adapting to the new realities. Coordinating engine interactions across the supply network results in an adaptive supply chain that continuously adjusts to the specific business environment for real-time synchronization of supply with demand. It also enables the intelligent management and analysis of inventory, capacity, and product lifecycles to shape demand for maximum revenue growth and profitability. The engines interact with the Saltare event management framework, which serves as the backbone of the Saltare Leap suite. The framework manages the interaction of the various engines, settles contention issues, resolves unplanned events, and provides an intuitive interface for users.