STMicroelectronics (NYSE: STM), one of the world's leading suppliers of semiconductor solutions for the telecommunications industry, has announced that its recently acquired facility in Ottawa, Ontario, Canada, will become the Company's worldwide Center of Excellence for high-speed technologies to be used for optical networking products. In addition to maintaining the front end wafer fab operations, ST will expand the existing Design Center to further support Nortel and other strategic customers of ST. The Company also plans to establish an R&D Center dedicated to developing processes, fundamental Intellectual Property (IP) and advanced packaging technologies for the rapidly growing market for high speed optical networks, the telecommunications technology that holds the key to future expansion of the Internet.

ST's Ottawa facility was formerly the in-house silicon semiconductor production operation of Nortel Networks, a world leader in communications technology. ST and Nortel have enjoyed a highly successful strategic alliance for many years and, in May 2000, the two companies announced a multi-faceted agreement which included the transfer of the Ottawa operations to ST, a joint development agreement for network technologies and products, and a six-year supply agreement, valued at up to an estimated US$2 billion over the first three years of its term, whereby ST will supply silicon semiconductor devices to Nortel Networks.

Following the completion of the acquisition, the Ottawa fab is now part of ST's global manufacturing operation and there are plans to invest further to support Nortel's semiconductor demand.

http://us.st.com/stonline/press/news/year2000/c877d.htm