The manufacturer of the famous value targeted KYRO reference boards announced today that they will no longer participate in the market of PC graphic products. If this is bad news for the unannounced KYRO III chipset remains unclear at the moment. However PowerVR Kyro patents were not owned by STM. The patents are courtesy of Imagination Technologies Group. Imagination is aware of discussions taking place with interested parties and has been involved in supporting ST with these activities. In addition, a number of interested PC chip companies have approached Imagination regarding access to future PowerVR PC technologies. We were told that Imagination will update shareholders with any further developments.

The Press Release Geneva, February 8, 2002 - STMicroelectronics (NYSE: STM) has announced that it is withdrawing from the PC Graphics Accelerator IC market and is currently seeking a buyer for the related assets and activities of its PC Graphics business, which accounted for approximately $15 million of ST's $6.36 billion revenues in 2001. The potential sale is in line with ST's objective of focusing its R&D efforts on market areas that are strategically important to the Company, notably: communications, automotive, computer peripherals, smart cards and digital consumer. In the digital consumer market, ST will continue to emphasize set-top box, DVD and digital TV applications, in which the Company holds worldwide leadership positions. Source: STMicroelectronics