SGS-THOMSON MICROELECTRONICS 1996 EARNINGS INCREASE 19% ON 16% REVENUE GAIN
1996 Net earnings rise to $625 Million

SGS-THOMSON Microelectronics N.V.
CONSOLIDATED BALANCE SHEETS

(In millions of US dollars)

	December 31, 1996	December 31, 1995
ASSETS
Current assets:
Cash and cash equivalents	551.9	754.0
Marketable securities	4.5	4.4
Trade accounts and notes receivable	645.9	595.4
Inventories	521.4	450.6
Other receivables and assets	418.1	360.3
Total current assets	2,141.8	2,164.7
Intangible assets, net	17.4	13.4
Property, plant and equipment, net	2,839.9	2,299.5
Investments and other non-current assets	6.4	8.4
	2,863.7	2,321.3
Total assets	5,005.5	4,486.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdrafts and current portion of long-term debt	428.2	492.8
Trade accounts and notes payable	444.2	507.9
Other payables and accrued liabilities	318.6	342.7
Accrued and deferred income tax	210.8	138.3
Total current liabilities	1,401.8	1,481.7
Long-term debt	194.9	200.7
Reserves for pension and termination indemnities	100.7	94.9
Other non-current liabilities	38.2	37.5
	333.8	333.1
Total liabilities	1,735.6	1,814.8
Minority interest	9.9	9.5
Capital Stock	1,072.9	1,066.5
Capital surplus	930.3	922.1
Accumulated result	1,209.8	584.0
Translation adjustement	47.0	89.1
Shareholders' equity	3,260.0	2,661.7
Total liabilities and shareholders' equity	5,005.5	4,486.0