ST-Ericsson aims at improved financial performance, competitive cost structure and accelerated portfolio execution

Geneva, Switzerland, December 3, 2009 - ST-Ericsson today announced
its proposed plan to further improve financial performance and
increase its competitiveness in the market. This plan follows the
reorganization announcement made in July this year.

The company is now targeting additional annualized savings of $115
million. These savings are expected to come from reductions in
operating expenses and spending, along with an extensive R&D
efficiency program. As part of this effort, the company will also
conduct a global workforce review which may affect up to an
additional 600 employees worldwide.

Specific country impact related to this proposed plan and further
details will be provided when employee representatives have been
involved where required.

About ST-Ericsson
ST-Ericsson is a world leader in developing and delivering a complete
portfolio of innovative mobile platforms and cutting-edge wireless
semiconductor solutions across the broad spectrum of mobile
technologies.  The company is a leading supplier to the top handset
manufacturers and ST-Ericsson's products and technologies enable more
than half of all phones in use today.  The company generated
pro-forma sales of about USD 3.6 billion in 2008.  ST-Ericsson was
established as a 50/50 joint venture by STMicroelectronics (NYSE:STM)
and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in
Geneva, Switzerland.

More information on ST-Ericsson is available at www.stericsson.com.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Media Relations
Phone: +41 22 930 2733
Email: media.relations@stericsson.com

Investor Relations
Phone: +41 22 929 6973
Email: investor.relations@stericsson.com