More Environmental Success for SGS-THOMSON Environmental 'first' for SGS-THOMSON in Malaysia

Muar, Malaysia, December 16, 1996 -

SGS-THOMSON Microelectronics announces that its plant in Muar, Malaysia has become the first site in Malaysia, to be recognized by an internationally accredited organization to meet the requirements of both the European Eco-Management and Audit Scheme (EMAS regulation) as well as the internationally recognised ISO 14001 environmental standard.

The validation is also in line with SGS-THOMSON's corporate goal to having all its sites worldwide recognised to the EMAS standard or equivalent before the end of 1997. Bureau Veritas Quality International Holding S.A. (BVQI), which is accredited by the national institutions of Denmark, the Netherlands, the United Kingdom, Sweden (both for EMAS and ISO 14001) and by Switzerland (for ISO 14001) was chosen by SGS-THOMSON to validate all its sites. The Muar plant completed its validation in August this year.

"Achieving both the EMAS validation and ISO 14001 standard certification marks an important milestone in SGS-THOMSON Muar's journey towards environmental conservation. It clearly shows the strong commitment by the management of the Muar plant, supported enthusiastically by the employees, to participate in environmental protection and minimization of environmental impacts through sound environmental management and continuous improvement," said Eugenio Re, General Manager of SGS-THOMSON Muar.

"We hope that with our environmental activities, we would be able to encourage other manufacturing plants in Malaysia towards environmental conservation," added Eugenio Re.

The Company is also committed to meeting the most stringent environmental standards of any country of operation at all SGS-THOMSON sites, and has defined in its decalogue, a goal to help the environment by planting ten trees for every employee throughout the world by the year 2000. Although this is not part of the EMAS accreditation procedure, the Muar site has already planted 3000 trees to date around the district.

By maximising the use of recyclable or resusable materials and progressively reducing the consumption of resources and the amount of waste generated, the corporation's ecological aim is to eliminate pollution and waste, and use as much as possible resources that can be replenished. In addition to its own actions, SGS-THOMSON encourages ecological concern through its products. For example, integrated circuits for automotive engine management systems, telecommunications and low power, portable computers and light bulbs all contribute to reducing energy consumption and consequently the pollution connected with electrical energy production.

In 1995, SGS-THOMSON's other assembly and test plant in Toa Payoh, Singapore was the first site in the Asia Pacific region validated to EMAS. Toa Payoh received a second accolade when it was certified to ISO 14001 this year. The Company's wafer fab plant in Ang Mo Kio, Singapore is currently preparing for EMAS validation and ISO 14001 standard certification.

EMAS is a voluntary scheme for companies performing industrial activities to measure environmental performance. This is achieved through:- the establishment and implementation of environmental policies, programmes and management systems by companies; the systematic, objective and periodic evaluation of environmental performance; and the provision of information of environmental performance to the public.

ISO-14001 is the latest International Standard for an organisation to formulate policy and objectives on environment taking into account legislative requirements and information about significant environmental impacts. Elements engulf General Requirement, Environmental Policy, Planning, Implementation and Operation, Checking & Correction Action and Management Review.

TSGS-THOMSON's plant in Muar, Malaysia located in the Tanjung Agas Industrial Area close to the Muar River has been in operation since 1974. The plant assembles and tests semiconductors products for use in consumer appliances, telecommunications, computer peripherals and industrial application products.

SGS-THOMSON Microelectronics is a global independent semiconductor supplier listed on the New York Stock Exchange (NYSE:STM) and on the Bourse de Paris. It designs, develops, manufactures, and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide array of microelectronics applications, including telecommunications systems, consumer products, automotive products and industrial automation and control systems.

Notes to Editors

To date SGS-THOMSON has validated nine of its sites according to EMAS and four are accreditated to ISO14001. The sites validated to EMAS are Kirkop, Malta; Toa Payoh, Singapore; Rancho Bernardo, California; Rennes, France; Crolles, France; Rousset, France; Tours, France; Muar, Malaysia; and now Carrollton, Texas. The sites accredited to ISO14001 are Rancho Bernardo, California; Toa Payoh, Singapore; Muar, Malaysia; Carrollton, Texas.

The EMAS scheme is described in EEC Council Regulation 1836/93. The scheme and its objectives are :
- A Community scheme allowing voluntary participation by companies performing industrial activities for the evaluation and improvement of the environmental performance of industrial activities and the provision of the relevant information to the public.
- The objective of scheme shall be to promote continuous improvements in the environmental performance of industrial activities by :
The establishment and implementation of environmental policies, programmes and management systems by companies, in relation to their sites;
- The systematic, objective and periodic evaluation of the performance of such elements;
The prevision of information of environmental performances to the public.
- The scheme shall be without prejudice to existing Community or national laws or technical standards regarding environmental controls and without prejudice to the duties of companies under those laws and standards.

The draft International Standard ISO/DIS 14001 is intended to provide organisations with the elements of an effective environmental management system which can be integrated with other management requirements, to assist organisations to achieve environmental and economic goals. The International Standard is applicable to any organisation that wishes to:
- implement, maintain and improve an environmental management system;
- assure itself of its conformance with its stated environmental policy;
- seek certification/registration of its environmental management system by an external organisation;
- make a self determination and declaration of conformance with standard.

To reduce paper consumption, we have not included a copy of SGS-THOMSON's Decalogue but a copy is available on request.

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