MIRA INFORM REPORT

Report Date :

01.02.2008

IDENTIFICATION DETAILS

Name :	STMICROELECTRONICS ASIA PACIFIC PTE LTD
Formerly Known as :	^SGS-THOMSON MICROELECTRONICS ASIA
Registered Office :	^5A Serangoon North Avenue 5, ^554574
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^22.06.1994
Com. Reg. No.:	^199404407W
Legal Form :	^Private Limited
Line of Business :	Marketing and Sale of Integrated Circuits and Subsystems

RATING & COMMENTS

MIRA’s Rating :

Aaa

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

STMICROELECTRONICS ASIA PACIFIC PTE LTD

Line Of Business 

MARKETING AND SALE OF INTEGRATED CIRCUITS AND SUBSYSTEMS.

Parent Company

STMICROELECTRONICS N.V.

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$4,757,612,000

Networth : US$ 192,440,000

Paid-Up Capital : US$ 8,410,000

Net result : US$ 33,641,000

Net Margin(%) : 0.71

Return on Equity(%) : 17.48

Leverage Ratio : 4.69

COMPANY IDENTIFICATION

^{Subject Company : STMICROELECTRONICS ASIA PACIFIC PTE LTD}

^{Former Name : SGS-THOMSON MICROELECTRONICS ASIA}

^{Business Address : 5A SERANGOON NORTH AVENUE 5}

^{Town : SINGAPORE}

^{Postcode : 554574}

^County:

^{Country : Singapore}

^{Telephone : 6216 5000}

^{Fax : 6484 1598}

^{ROC Number : 199404407W}

^{Reg. Town :}

PREVIOUS IDENTIFICATION

^{SGS-THOMSON MICROELECTRONICS ASIA PACIFIC (PTE) LTD DATE}

SUMMARY

^{All amounts in this report are in : USD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 22/06/1994}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 4,757,612,000}

^{Networth : 192,440,000}

^{Capital : 13,982,000}

^{Paid-Up Capital : 8,410,000}

^{Employees : 3,000}

^{Net result : 33,641,000}

^{Share value : 1}

^{Auditor : PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started : 22/06/1994}

PRINCIPAL(S)

^{RENATO SILVIO SIRTORI S2612442E Director}

DIRECTOR(S)

^{RENATO SILVIO SIRTORI S2612442E Director}

^{Appointed on : 22/06/1994}

^{Street : 44 FERNHILL ROAD}

^{Town: SINGAPORE}

^{Postcode: 259104}

^{Country: Singapore}

^{LOH WHY SAY CHARLIE S0311127Z Company Secretary}

^{Appointed on : 16/09/1994}

^{Street : 16 SIMEI RISE}

^#06-42

^{CHANGI RISE CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 528807}

^{Country: Singapore}

^{FRANCOIS PHILIPPE GUIBERT 07BC97831 Director}

^{Appointed on : 02/10/2006}

^{Street : 1 LADY HILL ROAD}

^#03-01

^{THE LADY HILL}

^{Town: SINGAPORE}

^{Postcode: 258670}

^{Country: Singapore}

^{FRANCOIS PHILIPPE GUIBERT 07BC97831 Manager}

^{Appointed on : 02/10/2006}

^{Street : 1 LADY HILL ROAD}

^#03-01

^{THE LADY HILL}

^{Town: SINGAPORE}

^{Postcode: 258670}

^{Country: Singapore}

^{ROBERT ALEXANDER KRYSIAK 093103906 Director}

^{Appointed on : 02/10/2006}

^{Street : ROOM 1-1702, JIN LIN TIAN DI}

^{NO. 139 DAN SHUI ROAD}

^{Town: SHANGHAI}

^{Postcode: 200020}

^{Country: China}

^{SEE AH BAH S0234953A Director}

^{Appointed on : 02/10/2006}

^{Street : 18 CHILTERN DRIVE}

^{BRADDELL HEIGHTS ESTATE}

^{Town: SINGAPORE}

^{Postcode: 359737}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LOH WHY SAY CHARLIE S0311127Z}

^{GIUSEPPE MASCHI Y85833}

^{EUGENIO RE Y136200}

^{JEAN CLAUDE MARQUET 05AE38313}

ACTIVITY(IES)

^{ELECTRONIC EQUIPMENT And SUPPLIES - WHSLE And MFRS Code:7640}

^{ELECTRONIC COMPONENTS Code:7605}

^{WAREHOUSES - PUBLIC Code:23305}

^{BUSINESS SERVICES Code:4}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURE OF PRINTED CIRCUIT BOARDS WITHOUT ELECTRONIC PARTS;}

^{MARKETING & SALE OF INTEGRATED CIRCUITS SUBSYSTEMS}

PREMISES/PROPERTY INFORMATIONS

^{Date: 28/05/2007}

^{Estimated Value :}

^{Tax rate: 10}

^{Site Address : 7 LOYANG DRIVE}

^{Town: SINGAPORE}

^County:

^{Postcode: 508938}

^{Country: Singapore}

^{Annual Value: 508,000}

^{TAX RATE OF 4% MEANS THE ADDRESS IS OWNER OCCUPIED}

^{TAX RATE OF 12% MEANS THE ADDRESS IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER}

BANKERS

^{DBS BANK LTD.}

^{OVERSEAS-CHINESE BANKING CORPORATION LIMITED}

^{UNITED OVERSEAS BANK LIMITED}

^{BNP PARIBAS}

SHAREHOLDERS(S)

^{STMICROELECTRONICS N.V. 13,982,000 Company}

^{Street : WTC SCHIPHOL AIRPORT AMSTERDAM}

^{SCHIPHOL BOULEVARD 265}

^{1118 BH SCHIPHOL AIRPORT}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{RENATO SILVIO SIRTORI 1}

^{MARQUET JEAN CLAUDE 1}

HOLDING COMPANY

^{STMICROELECTRONICS N.V. UF22740C % : 100}

SUBSIDIARY(IES)

^{SHENZHEN STS MICROELECTRONICS CO LTD}

^{STMICROELECTRONICS PTY LIMITED}

^{STMICROELECTRONICS (BEIJING) R&D CO LIMITED}

^{STMICROELECTRONICS SHENZHEN CO LTD}

^{STMICROELECTRONICS (SHENZHEN) R&D CO., LTD}

^{STMICROELECTRONICS SHANGHAI R&D CO., LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case: Magistrate Court - W/S P}

^{Case Number: MCS12965/1996}

Defendant STMICROELECTRONICS ASIA PACIFIC ROC # : 199404407W

FINANCIAL ELEMENTS

^{All amounts in this report are in : USD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 18/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 2,140,000 1,624,000}

^{Intangible Fixed Assets: 179,000 4,000}

^{Tangible Fixed Assets: 13,637,000 13,725,000}

^{Investments 57,971,000 67,097,000}

^{Total Fixed Assets: 73,927,000 82,450,000}

^{Inventories: 123,248,000 109,007,000}

^{Receivables: 857,285,000 816,282,000}

^{Cash,Banks, Securitis: 32,992,000 3,244,000}

^{Other current assets: 7,280,000 18,049,000}

^{Total Current Assets: 1,020,805,000 946,582,000}

^{TOTAL ASSETS: 1,094,732,000 1,029,032,000}

^{--- LIABILITIES ---}

^{Equity capital: 8,410,000 8,410,000}

^{Profit & lost Account: 184,030,000 200,389,000}

^{Total Equity: 192,440,000 208,799,000}

^{L/T deffered taxes: 11,099,000 1,771,000}

^{Total L/T Liabilities: 11,099,000 1,771,000}

^{Trade Creditors: 813,893,000 788,089,000}

^{Prepay. & Def. charges: 16,103,000 13,460,000}

^{Provisions: 8,008,000 12,252,000}

^{Other Short term Liab.: 53,189,000 4,661,000}

^{Total short term Liab.: 891,193,000 818,462,000}

^{TOTAL LIABILITIES: 902,292,000 820,233,000}

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales 4,757,612,000 4,147,565,000}

^{Purchases,Sces & Other Goods: 4,474,544,000 3,880,662,000}

^{Gross Profit: 283,068,000 266,903,000}

^{NET RESULT BEFORE TAX: 50,170,000 64,602,000}

^{Tax : 16,529,000 8,873,000}

^{Net income/loss year: 33,641,000 55,729,000}

^{Interest Paid: 1,000 10,000}

^{Depreciation: 3,063,000 2,888,000}

^{Dividends: 50,000,000 39,820,000}

^{Directors Emoluments: 865,000 768,000}

^{Wages and Salaries: 57,042,000 44,501,000}

^{Financial Income: 1,673,000 1,067,000}

RATIOS

^{31/12/2006 31/12/2005}

^{Turnover per employee: 1585870.67 1382521.67 Net result / Turnover(%): 0.01 0.01 Stock / Turnover(%): 0.03 0.03 Net Margin(%): 0.71 1.34 Return on Equity(%): 17.48 26.69 Return on Assets(%): 3.07 5.42 Dividends Coverage: 0.67 1.40 Net Working capital: 129612000.00 128120000.00 Cash Ratio: 0.04 0.00 Quick Ratio: 1.00 1.00 Current ratio: 1.15 1.16 Receivables Turnover: 64.87 70.85 Leverage Ratio: 4.69 3.93}

Net Margin : (100*Net income loss year)/Net sales

Return on Equity : (100*Net income loss year)/Total equity

Return on Assets : (100*Net income loss year)/Total fixed assets

Dividends Coverage : Net income loss year/Dividends

Net Working capital : (Total current assets - Total short term liabilities)

Cash Ratio : Cash Bank securities/Total short term liabilities

Quick Ratio : (Cash Bank securities + Receivables)/Total Short

Term Liabilities

Current ratio : Total current assets/Total short term liabilities

Receivables Turnover : (Receivable*360)/Net sales

Leverage Ratio : Total liabilities/(Total equity-Intangible assets)

FINANCIAL COMMENTS

NOTE: THE FINANCIALS FOR FY2004 WERE EXPRESSED IN SINGAPORE DOLLARS

WHILE THOSE OF FY2006 AND FY2005 WERE IN UNITED STATES DOLLARS.

THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF

THE FOLLOWING:

NET WORTH:

THE BALANCE SHEET WAS CONSIDERED PASSABLE ALTHOUGH TOTAL EQUITY DECREASED BY 7.83% TO US$192,440,000 (2005: US$208,799,000). THIS WAS DUE TO LOWER RETAINED EARNINGS OF US$184,030,000 (2005: US $200,389,000); A FALL OF 8.16% FROM THE PRIOR FINANCIAL YEAR.

LEVERAGE:

IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 91.33% (2005: 96.29%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$813,893,000 (2005: US$788,089,000). BREAKDOWN WAS

AS FOLLOWS:

* TRADE PAYABLES - 2006: US$1,266,000 (2005: US$1,890,000)

* DUE TO RELATED CORPORATIONS (TRADE) - 2006: US$812,627,000

(2005: US$786,199,000)

IN ALL, LEVERAGE RATIO ROSE TO 4.69 TIMES (2005: 3.93 TIMES); THIS INDICATED THAT THE COMPANY'S LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.

LIQUIDITY:

IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO WAS SLIGHTLY FELL TO 1.15 TIMES (2005: 1.16 TIMES) WHILE QUICK RATIO REMAIN STABLE AT 1.00 TIMES (2005: 1.00 TIMES).

NET WORKING CAPITAL IMPROVED BY 1.16% FROM US$128,120,000 IN FY 2005 TO US$129,612,000 IN FY 2006.

CASH AND CASH EQUIVALENTS ROSE BY 9.17 TIMES AND AMOUNTED TO US

$32,992,000 (2005: US$3,244,000). BREAKDOWN WAS AS FOLLOWS:

* CASH AT BANK AND ON HAND - 2006: US$20,352,000 (2005: US$1,524,000)

* SHORT-TERM BANK DEPOSIT - 2006: US$12,640,000 (2005: US$1,720,000)

PROFITABILITY:

SUBJECT POSTED AN INCREASE IN REVENUE OF 14.71% WHICH AMOUNTED TO US $4,757,612,000 (2005: US$4,147,565,000). HOWEVER, NET PROFIT FELL BY 39.63% TO US$33,641,000 (2005: US$55,729,000). THIS COULD BE DUE TO THE INCREASE OF INCOME TAX EXPENSE BY 86.28% AND AMOUNTED TO US$16,529,000 (2005: US$8,873,000). HENCE, NET MARGIN FELL TO 0.71%

(2005: 1.34%).

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS SHORTHENED TO 65 DAYS (2005: 71 DAYS).

NON-CURRENT ASSETS:

DEFERRED INCOME TAX ASSETS AMOUNTED TO US$2,140,000 (2005: US

$1,624,000) WERE CLASSIFIED UNDER PRELIMINARY.

NOTES TO FINANCIAL STATEMENTS:

* CAPITAL COMMITMENTS - CAPITAL EXPENDITURES CONTRACTED FOR AT THE

BALANCE SHEET DATE BUT NOT RECOGNISED IN THE FINANCIAL STATEMENTS ARE

AS FOLLOWS:

PROPERTY, PLANT AND EQUIPMENT - 2006: US$698,000 (2005: US$252,000)

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/06/1994 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "SGS-THOMSON MICROELECTRONICS ASIA (PTE) LTD".

SUBSEQUENTLY ON 19/05/1998, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "STMICROELECTRONICS ASIA PACIFIC PTE LTD".

THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 13,982,000 SHARES OF A VALUE OF S$13,982,000.

PRINCIPAL ACTIVITIES:

SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:

1) MANUFACTURE OF PRINTED CIRCUIT BOARDS WITHOUT ELECTRONIC PARTS;

MARKETING & SALE OF INTEGRATED CIRCUITS SUBSYSTEMS

2) GENERAL WAREHOUSING; OPERATION OF A CENTRALISED LOGISTICS &

WAREHOUSING CENTRE

DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE MARKETING AND SALE OF INTEGRATED CIRCUITS AND SUBSYSTEMS, REGIONAL HEADQUARTERS FUNCTIONS AND THE OPERATION OF A CENTRALISED LOGISTICS AND WAREHOUSE CENTRE. THE COMPANY ALSO HAS A BRANCH IN KOREA WHICH IS ENGAGED IN THE SALE AND MARKETING OF THE COMPANY'S PRODUCTS.

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:

* A GLOBAL INDEPENDENT SEMICONDUCTOR COMPANY THAT DESIGNS, DEVELOPS,

MANUFACTURES AND MARKETS A BROAD RANGE OF SEMICONDUCTOR INTEGRATED

CIRCUITS (ICS) AND DISCRETE DEVICES USED IN A WIDE VARIETY OF

MICROELECTRONIC APPLICATIONS, INCLUDING TELECOMMUNICATIONS SYSTEMS,

COMPUTER SYSTEMS, CONSUMER PRODUCTS, AUTOMOTIVE PRODUCTS AND

INDUSTRIAL AUTOMATION AND CONTROL SYSTEMS.

MARKET PRESENCE:

* ASIA-PACIFIC

AWARDS AND QUALIFICATIONS:

* ISO 9001 FOR WAFER FAB & DESIGN CENTRE

* EMAS, ISO 14001, ISO/TS 16949 AND QS 9000

* DISTINGUISHED PARTNER IN PROGRESS (DPIP) AWARD FROM THE ECONOMIC

DEVELOPMENT BOARD.

* SINGAPORE QUALITY AWARD

SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:

* SINGAPORE INTENRATIONAL CHAMBER OF COMMERCE

* FRENCH CHAMBER OF COMMERCE IN SINGAPORE

NEWS: INTEL, STMICROELECTRONICS, AND FRANCISCO PARTNERS ESTABLISH A

NEW LEADER IN FLASH MEMORIES

"EXTRACTS"

-SOURCE: STMICROELECTRONICS WEBSITE

DATE: 22/05/2007

GENEVA AND SANTA CLARA, CALIF., - STMICROELECTRONICS, INTEL AND FRANCISCO PARTNERS TODAY ANNOUNCED THEY HAVE ENTERED INTO A DEFINITIVE AGREEMENT TO CREATE A NEW INDEPENDENT SEMICONDUCTOR COMPANY FROM THE KEY ASSETS OF BUSINESSES WHICH LAST YEAR GENERATED APPROXIMATELY $3.6

BILLION IN COMBINED ANNUAL REVENUE. THE NEW COMPANY'S STRATEGIC FOCUS WILL BE ON SUPPLYING FLASH MEMORY SOLUTIONS FOR A VARIETY OF CONSUMER AND INDUSTRIAL DEVICES, INCLUDING CELLULAR PHONES, MP3 PLAYERS, DIGITAL CAMERAS, COMPUTERS AND OTHER HIGH-TECH EQUIPMENT.

THE NEW COMPANY WILL COMBINE KEY RESEARCH AND DEVELOPMENT, MANUFACTURING AND SALES AND MARKETING ASSETS OF INTEL AND STMICROELECTRONICS INTO A STREAMLINED WORLDWIDE STRUCTURE WITH THE SCALE TO PRODUCE COST-EFFECTIVE AND INNOVATIVE NON-VOLATILE MEMORY SOLUTIONS. WITH STMICROELECTRONICS AND INTEL CONTRIBUTING MORE THAN 40 YEARS OF COMBINED EXPERIENCE IN NON-VOLATILE MEMORY TECHNOLOGY DEVELOPMENT, INCLUDING NEXT-GENERATION PHASE-CHANGE MEMORY, THE COMPANY WILL BE WELL POSITIONED TO BOTH SERVE ITS CUSTOMERS WITH COMPLETE MEMORY SOLUTIONS AND ACCELERATE THE MOVE TO FUTURE NON- VOLATILE MEMORY TECHNOLOGIES.

UNDER THE TERMS OF THE AGREEMENT, STMICROELECTRONICS WILL SELL ITS FLASH MEMORY ASSETS, INCLUDING ITS NAND JOINT VENTURE INTEREST AND OTHER NOR RESOURCES, TO THE NEW COMPANY WHILE INTEL WILL SELL ITS NOR ASSETS AND RESOURCES. IN EXCHANGE, INTEL WILL RECEIVE A 45.1 PERCENT EQUITY OWNERSHIP STAKE AND A $432 MILLION CASH PAYMENT AT CLOSE. STMICROELECTRONICS WILL RECEIVE A 48.6 PERCENT EQUITY OWNERSHIP STAKE AND A $468 MILLION CASH PAYMENT AT CLOSE. FRANCISCO PARTNERS L.P., A MENLO PARK, CALIF.-BASED PRIVATE EQUITY FIRM, WILL INVEST $150 MILLION IN CASH FOR CONVERTIBLE PREFERRED STOCK REPRESENTING A 6.3 PERCENT OWNERSHIP INTEREST, SUBJECT TO ADJUSTMENT IN CERTAIN CIRCUMSTANCES. CONCURRENTLY, THE PARTIES HAVE ARRANGED FOR THE NEW COMPANY TO RECEIVE FIRM COMMITMENTS FOR A $1.3 BILLION TERM LOAN AND $250 MILLION REVOLVER. THE TERM LOAN WILL BE UNDERWRITTEN BY A CONSORTIUM OF BANKS. PROCEEDS FROM THE TERM LOAN WILL BE USED FOR WORKING CAPITAL AND PAYMENT TO INTEL AND STMICROELECTRONICS FOR THE PURCHASE PRICE. THE TRANSACTION IS SUBJECT TO REGULATORY APPROVALS AND CUSTOMARY CLOSING CONDITIONS AND IS EXPECTED TO OCCUR IN THE SECOND HALF OF 2007.

"THE NEW COMPANY WILL IMMEDIATELY BE ABLE TO OFFER A VERY BROAD RANGE OF NON-VOLATILE MEMORY SOLUTIONS IN ORDER TO ADDRESS THE NEEDS OF A WIDE VARIETY OF COMMUNICATIONS AND INDUSTRIAL CUSTOMERS," SAID DIPANJAN DEB, FOUNDER AND MANAGING PARTNER AT FRANCISCO PARTNERS. THE NEW COMPANY, TO BE MANAGED BY BRIAN HARRISON AS CEO-DESIGNATE AND MARIO LICCIARDELLO, CURRENTLY CORPORATE VICE PRESIDENT OF ST'S FLASH MEMORIES GROUP AS COO-DESIGNATE, WILL BE HEADQUARTERED IN SWITZERLAND AND INCORPORATED IN THE NETHERLANDS WITH NINE MAIN RESEARCH AND MANUFACTURING LOCATIONS AROUND THE WORLD AND APPROXIMATELY 8,000 EMPLOYEES. THE COMPANY WILL ALSO BENEFIT FROM A WORLDWIDE SALES FORCE.

FROM THE TELE-INTERVIEW CONDUCTED ON 22/01/2008, SUBJECT HAS 3,000 EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE.

THE HOLDING CORPORATION IS STMICROELECTRONICS N.V AND IS INCORPORATED IN THE NETHERLANDS.

NUMBER OF EMPLOYEES (31 DECEMBER):

* 2006 - 1,000

* 2005 - NOT AVAILABLE

* 2004 - 763

* 2003 - 633

* 2002 - 487

* 2001 - 490

REGISTERED AND BUSINESS ADDRESS:

5A SERANGOON NORTH AVENUE 5

SINGAPORE 554574

DATE OF CHANGE OF ADDRESS: 02/05/2003

- RENTED PREMISE

- OWNED BY STMICROELECTRONICS PTE LTD

OTHER BUSINESS ADDRESSES:

28 ANG MO KIO INDUSTRIAL PARK 2

SINGAPORE 569508

- RENTED PREMISE

- OWNED BY STMICROELECTRONICS PTE LTD

- MANUFACTURING PLANT

7 LOYANG DRIVE

SINGAPORE 508938

- OWNED PREMISE

- TEL: 6545 5488

- FAX: 6542 0485

- WAREHOUSE/LOGISTIC CENTRE

WEBSITE: www.st.com

EMAIL: -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THE REPORT ARE:

1) FRANCOIS PHILIPPE GUIBERT, A FRENCH

- BASED IN SINGAPORE

2) ROBERT ALEXANDER KRYSIAK, A BRITISH

- BASED IN CHINA

3) SEE AH BAH, A SINGAPOREAN

- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

4) RENATO SILVIO SIRTORI, A SINGAPORE PERMANENT RESIDENT

- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:

STMICROELECTRONICS PTE LTD

STMICROELECTRONICS SDN BHD

STMICROELECTRONICS (MEMORY) PTE. LTD.

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.

HIGH QUALITY COMPETITIVENESS IN ASIA

EXCELLENT BUSINESS CLIMATE

POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.

AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.

GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.

BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 8.9% IN 3Q 2007, FOLLOWING 8.7% GROWTH IN 2Q 2007. GROW MOMENTUM (ON AN ANNUALISED QUARTER-ON-QUARTER BASIS) WAS 4.3%, COMPARED WITH 14.5% IN THE SECOND QUARTER.

THE FINANCIAL SERVICES SECTOR ROSE SIGNIFICANTLY BY 20% IN 3Q 2007, FOLLOWING A 17% GROWTH IN THE PREVIOUS QUARTER. HOWEVER, ON A SEASONALLY-ADJUSTED QUARTER-ON-QUARTER BASIS, THE SECTOR FELL BY 8.6%, IN CONTRAST TO THE 39% GROWTH IN THE SECOND QUARTER. THE DECLINE STEMS FROM THE IMPACT FROM THE TURMOIL IN GLOBAL FINANCIAL MARKETS.

THE CONSTRUCTION SECTOR REGISTERED A STRONG GROWTH. THE SECTOR GREW BY 18%, FOLLOWING 19% GAIN IN 2Q 2007. GROWTH MOMENTUM MODERATED FROM 15% IN 2Q 2007 TO 6% IN 3Q 2007.

MANUFACTURING SECTOR ROSE BY 10% IN 3Q 2007, UP FROM 8.3% IN 2Q 2007. THE HIGHEST GROWTH WAS REGISTERED IN THE BIOMEDICAL MANUFACTURING CLUSTER, FOLLOWED BY TRANSPORT ENGINEERING, ELECTRONICS AND CHEMICALS

CLUSTERS. PRECISION ENGINEERING SECTOR CONTINUED TO SEE LOWER PRODUCTION.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, SLOWER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES SAW WEAKER GROWTH.

THE TRANSPORT AND STORAGE SECTOR MOEDERATED TO 4.8% IN 3Q 2007, FROM 5.3% IN 2Q 2007. HIGHER GROWTH IN THE AIR TRANSPORT SEGMENT WAS OFFSET BY SLOWER GROWTH IN THE WATER TRANSPORT SEGEMENT AFTER LAST QUARTER’S STRONG GROWTH.

THE HOTELS AND RESTAURANTS SECTOR GREW BY 4.5% FROM 5.3% IN 2Q 2007.

THE AVERAGE OCCUPANCY RATE OF HOTELS CLIMBED TO 89%, A 2.1% RISE OVER 3Q 2006. THE AVERAGE ROOM RATE ALSO GREW BY 22% TO S$204. CONSEQUENTLY, TOTAL HOTEL ROOM REVENUE OF GAZETTED HOTELS ROSE BY 20% IN 3Q 2007 TO AN ESTIMATED S$478 MILLION.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.9% IN 3Q 2007, HIGHER THAN THE 6.5% IN 2Q 2007. THE TELECOMMUNICATIONS SEGMENT CONTINUED TO ACCOUNT FOR MUCH OF THE GROWTH IN THE SECTOR. IT SERVICES MAINTAINED ITS MODERATE GROWTH LEVEL FROM 2Q 2007.

IN THE TELECOMMUNICATIONS SEGMENT, THE GROWTH OF MOBILE SUBSCRIBERS CONTINUED TO RISE, RISING BY 20%, UP FROM 18% IN 2Q 2007. INTERNATIONAL TELEPHONE CALL DURATION GREW TO 27%, UP FROM 24% IN 2Q 2007.

THE BUSINESS SERVICES SECTOR EXPANDED BY 7.1%, SIMILAR TO THE 7.2% GAIN IN 2Q 2007. GROWTH WAS HEALTHY ACROSS ALL SEGMENTS, WITH GOOD PERFORMANCES IN THE BUSINESS REPRESENTATIVE OFFICES, REAL ESTATE AND PROFESSIONAL SERVICES SEGMENTS.

NEWS

SINGAPORE GROWTH SLOWS TO 6% IN 4Q 2007

THE SINGAPORE ECONOMY GREW AT A SLOWER-THAN-EXPECTED 6% GROWTH IN 4Q 2007, WEIGHED DOWN BY DECLINING MANUFACTURING OUTPUT.

ECONOMISTS HAD ANTICIPATED GROWTH OF 7.0-8.5% FOR 4Q 2007.

THE ESTIMATE FOR REAL GROSS DOMESTIC PRODUCT (GDP) GROWTH, COMPARED WITH 4Q 2006, MEANT THE GROWTH HAD MODERATED FROM THE REVISED GROWTH FIGURE OF 9% SEEN IN 3Q 2006, THE MINISTRY OF TRADE AND INDUSTRY SAID.

ON A QUARTER-ON-QUARTER SEASONALLY ADJUSTED ANNUALISED BASIS, REAL GDP FELL BY 3.2% IN 4Q 2007 COMPARED WITH A 4.4% GAIN IN 3Q 2007, CAUSED BY A SLOWDOWN IN MANFACTURING OUTPUT.

THE FIGURE MARKS THE FIRST QUARTER-ON-QUARTER DECLINE SINCE 1Q 2005, ACCORDING TO DATA.

GROWTH IN THE MANUFACTURING SECTOR IS FORECASTED TO HAVE SLOWED FROM 10.3% IN 3Q 2007 TO 0.5% IN 4Q 2007. IT WAS LARGELY ATTRIBUTED TO A DECLINE IN THE BIOMEDICAL MANUFACTURING CLUSTER AS SOME ACTIVE PHARMACEUTICAL INGREDIENTS WERE NOT PRODUCED.

TRANSPORT ENGINEERING, WHICH INCLUDES OIL RIG MANUFACTURING AND SHIP REPAIR, CONTINUED TO SHOW DOUBLE-DIGIT GROWTH, WHILE THE CONSTRUCTION SECTOR IS PREDICTED TO HAVE GROW STRONGLY BY 24.4% IN 4Q 2007, UP FROM 19.2% IN 3Q 2007.

GROWTH IN THE SERVICE SECTOR WAS STEADY AT 8.3%.

SINGAPORE’S ECONOMY GREW BY 7.5% IN 2007, MARKING THE FOURTH STRAIGHT YEARS OF STRONG GROWTH, PRIME MINISTER LEE HSIEN LOONG SAID IN HIS NEW YEAR MESSAGE.

THE FIGURE FOR 2007 ECONOMIC EXPANSION WAS AT THE LOWER END OF THE GOVERNMENT’S UPGRADED FULL-YEAR GROWTH TARGET OF 7.5-8.0%, AND WAS BELOW THE 7.9% GROWTH REGISTERED FOR 2006.

MR LEE FORECAST GROWTH OF 4.5-6.5% FOR SINGAPORE IN 2008.

OUTLOOK

FOR 2008, EXTERNAL ECONOMIC CONDITIONS ARE EXPECTED TO WEAKEN SLIGHTLY COMPARED TO 2007. THE LINGERING EFFECTS OF THE SUB-PRIME PROBLEMS AND AN OVERALL WEAKENING OF THE HOUSING MARKET WILL DAMPEN US CONSUMPTION. EU GROWTH IS ALSO EXPECTED TO BE LOWER AS A STRONG CURRENCY ERODES EXPORT COMPETITIVENESS. HOWEVER, THE FORECAST FOR ASIAN ECONOMIES REMAIN POSITIVE, WITH CHINA EXPECTED TO SUBSTAIN DOUBLE-DIGIT GROWTH.

WITH THESE FACTORS IN MIND, THE MINISTRY OF TRADE AND INDUSTRY PREDICTS THS SINGAPORE ECONOMY TO GROW BY 4.5-6.5% IN 2008. THIS REPRESENTS A MODERATION IN GROWTH TOWARDS THE ECONOMY’S POTENTIAL RATE OF GROWTH, AFTER FOUR YEARS OF ABOVE-TREND GROWTH.

THERE ARE SOME DOWNSIDE RISKS. IF THE SUB-PRIME PROBLEMS WORSEN THAN EXPECTED, OR OIL PRICES RISE FURTHER IN 2008, THIS COULD BRING A GREATER-THAN-EXPECTED SLOWDOWN IN US, WHICH WOULD AFFECT THE SINGAPORE ECONOMY.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS, ESPECIALLY INSURANCE COMPANIES, REMAINS POSITIVE ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

FIRMS IN THE REAL ESTATE INDUSTRY EXPECT BUSINESS TO BE BRISK FOR THE

COMING MONTHS, IN PARTICULAR THE REAL ESTATE DEVELOPERS.

MANUFACTURING FIRMS REMAIN OPTIMISTIC FOR THE PERIOD ENDING MARCH 2008. A NET WEIGHTED BALANCE OF 25% OF MANUFACTURERS FORECAST BETTER BUSINESS, SLIGHTLY HIGHER THAN THE 22% REGISTERED BOTH IN THE PREVIOUS QUARTER AND THE SAME PERIOD IN THE PREVIOUS YEAR.

WHOLESALERS GENERALLY REMAIN POSITIVE ABOUT THEIR BUSINESS CONDITIONS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS BEING OPTIMISTIC FOR THE COMING MONTHS. SEGMENTS THAT ARE EXPECTED TO PERFORM BETTER INCLUDE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD ELECTRICAL APPLIANCES.

RETAILERS ANTICIPATES BETTER BUSINESS IN THE COMING MONTHS DUE TO YEAR-END FESTIVE SHOPPING, WITH A NET WEIGHTED BALANCE OF 31% BEING POSITIVE. THE SEGMENTS THAT ARE FORECASTING BRISK BUSINESS IN THE COMING MONTHS INCLUDE DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

HOTELIERS FORESEES A FAVOURABLE BUSINESS OUTLOOK, WITH A NET WEIGHTED BALANCE OF 79% OF FIRMS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF HIGHER BANQUET SALES AND INCREASE IN ROOM REVENUE IN VIEW OF THE POSITIVE DEVELOPMENT IN THE TOURISM INDUSTRY. FIRMS IN THE CATERING TRADE INDUSTRY ALSO FORESEES BETTER BUSINESS CONDITIONS.

FIRMS IN THE INFORMATION AND COMMUNICATIONS INDUSTRY PREDICTS A HIGHER DEMAND FOR THEIR SERVICES, WITH A NET WEIGHTED BALANCE OF 5%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 33% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE ACCOUNTING, BOOK-KEEPING AND AUDITING, ENGINEERING AND SPECIALISED DESIGN SERVICES AS WELL AS TRAVEL AGENCIES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNEL NEWS ASIA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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