GENEVA, Sept. 15 /PRNewswire-FirstCall/–STMicroelectronics (NYSE: STM) today announced it has signed an agreement with Alien Technology Corporation to collaborate on the development and manufacturing of integrated circuits (ICs) for ultra-low cost radio frequency identification (RFID) tags.

Low-cost RFID systems will be instrumental in creating new supply chain, logistics, and authentication solutions that will provide improved efficiency, accuracy, and security to major manufacturers, retailers, and their customers.

ST Microelectronics and Alien Technology are members of the Auto-ID Center, an industry consortium dedicated to creating and implementing next- generation automatic identification solutions, primarily RFID. The Center’s members include The Gillette Company, Procter & Gamble, Johnson & Johnson, Unilever, Pepsi, Pfizer, Coca Cola, Wal-Mart, Target, Tesco, Metro AG, UPS, and the US Post Office. The Center has created a new open specification, EPC Class 1, for RFID that is the basis for the companies’ collaboration. Alien has developed the first IC that operates according to the EPC Class 1 specification.

“ST has a very high respect for the know-how accumulated by Alien’s team of RF engineers over many years and its pioneering work with the Auto-ID Center,” commented Claude Dardanne, General Manager of ST’s EEPROM and Serial NVM Division, Memory Products Group. “Alien’s expertise is an excellent complement to ST’s knowledge, process technology and leadership in smart card and RFID ICs, in addition to its world-class manufacturing strengths. ST sees the potential of RFID to revolutionize many business processes, and is looking forward to working with Alien to develop products in support of the Auto-ID Center’s vision.”

As part of the cooperation, Alien will make available to ST its RFID IC and system design experience, and ST will provide RF engineering and IC development expertise, process technology and manufacturing capability. The goal of the collaboration is to design and produce an ultra-low cost, high-performance RFID IC that will ultimately cost less than a penny, establishing the two companies at the forefront of RFID technology development and deployment. The cooperation also includes a multi-year volume supply agreement between the companies. The first product associated with this agreement is expected to be available in the first quarter of 2004.

“As one of the largest semiconductor companies in the world, with extensive RF, analog and mixed signal IC design experience, ST will add a great deal of momentum to the adoption of EPC Class 1 RFID Technology by providing a reliable source of ICs,” said Stav Prodromou, CEO of Alien Technology Corporation.

By establishing a second source for Alien Technology’s EPC Class 1 IC product, STMicroelectronics will support the growing market demand for RFID products created by Wal-Mart’s announcement for its top 100 suppliers to adopt RFID technology by 2005. In addition, Alien will partner with ST to meet its own customer requirements for RFID product.

ST will be on booth #616 at the Frontline International Supply Chain Week Expo, McCormick Place, Chicago, IL, this week from September 15 to 18, 2003.

About Alien Technology

Alien Technology is the leading provider of reliable, high-volume low cost EPC Compliant Radio Frequency Identification (RFID) products. Using Fluidic Self Assembly (FSA), a patented manufacturing process, Alien manufactures ultra low cost electronic product code (EPC) tags used in a variety of applications including supply chain management, logistics operations and anti-counterfeiting to improve inventory management and reduce operating costs. Alien Technology is an active member of the Auto ID Center. More information about Alien Technology can be found on the Company’s website at http://www.alientechnology.com.

About STMicroelectronics

STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivaled 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 2002, the Company’s net revenues were $6.32 billion and net earnings were $429.4 million. Further information on ST can be found at http://www.st.com.