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SAN JOSE, Calif. & GENEVA--(BUSINESS WIRE)--Dec. 13, 2000--Atmel® Corporation (Nasdaq:ATML) and STMicroelectronics (NYSE:STM) announced today that they have settled all claims against each other pursuant to pending patent litigation lawsuits filed before the Federal Courts of the Northern District of Texas and the District of Delaware. In connection with the settlement, both companies have entered into a broad patent cross-license agreement. Both companies expressed their satisfaction with the terms of the confidential license agreement, which they believe reinforces the strength of their respective patent portfolios (specifically including the patents involved in the litigations). In addition to announcing the settlement, the companies announced that they are evaluating other areas of further cooperation.

About Atmel

Founded in 1984, Atmel Corporation is headquartered in San Jose, Calif. with principal manufacturing facilities in Colorado Springs, Colo., Nantes and Rousset and Grenoble, France and Heilbronn, Germany. Atmel designs, manufactures and markets on a worldwide basis advanced logic, mixed-signal, nonvolatile memory, and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using advanced CMOS, BiCMOS, BiPolar and SiGe process technologies.

Atmel product and financial information can be retrieved from its Fax-on Demand service. In North America call 800/292-8635. Internationally from a fax phone, dial 408/441-0732. Requests may be sent via e-mail to literature@atmel.com or by visiting Atmel's website at http://www.atmel.com.

About STMicroelectronics

STMicroelectronics (formerly SGS-Thomson Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Paris Bourse and on the Milan Stock Exchange. The company 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. In 1999, the company's net revenues were $5.056 billion and net earnings were $547 million. Further information on ST can be found at www.st.com.

     Atmel Corp.
     Julie Mar-Spinola, 408/487-2906 (Litigation & IP Counsel)
     jmarspinola@atmel.com
       or
     STMicroelectronics
     Maria Grazia Prestini, +39 39 6035901 (Italy);
     +33 4 5040 2532 (France)
     mariagrazia.prestini@st.com