SGS-THOMSON announces minimal disruption resulting from fire at Muar, Malaysia assembly plant

SGS-THOMSON announces minimal disruption resulting from fire at Muar, Malaysia assembly plant

1995–SGS-THOMSON Microelectronics N.V. (NYSE:STM) today announced that it expects minimal disruption resulting from a fire that occurred in its assembly plant in Muar, Malaysia. The Company also announced that there were no injuries to any plant personnel.

The Company is currently evaluating the damage resulting from the fire, but believes that the fire will not have a material adverse impact on its results of operations or financial condition.

The Company indicated that the fire was contained within a limited non-clean room production area dedicated primarily to the assembly of commodity products in plastic dual-in- line packages. The assembly plant at Muar is one of the five back-end plants operated by SGS-THOMSON.

Giordano Seragnoli, Corporate Vice President Back-end Manufacturing commented, “SGS-THOMSON has already taken a number of initiatives to minimize the impact on our customers. We are repairing equipment that suffered minor damage from the fire and expect to quickly obtain new equipment where necessary. Fortunately, there is space in the plant to accommodate the relocation of the affected operations. Until production is fully restored, we will draw upon existing SGS-THOMSON facilities and relationships with subcontractors to fulfill demand.”

SGS-THOMSON is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits 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.

CONTACT: SGS-THOMSON Microelectronics N.V.

Carlo Ottaviani, Tel: 33.50.40.25.24

or

Morgen-Walke Associates, Inc.

Michele Katz

Press: Brian Maddox, 212/850-5600

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