STMicroelectronics N.V.

Consolidated Statements of Income

(in million of U.S. dollars, except per share data ($))

Twelve Months Ended

(Unaudited)

(Audited)

December, 31

December, 31

2009

2008

Net sales

8,465 

9,792 

Other revenues

45 

50 

 NET REVENUES

8,510 

9,842 

Cost of sales

(5,884)

(6,282)

 GROSS PROFIT

2,626 

3,560 

Selling, general and administrative

(1,159)

(1,187)

Research and development

(2,365)

(2,152)

Other income and expenses, net

166 

62 

Impairment, restructuring charges and other related closure costs

(291)

(481)

 Total Operating Expenses

(3,649)

(3,758)

 OPERATING LOSS

(1,023)

(198)

Oher-than-temporary impairment charge and realized losses on financial assets

(140)

(138)

Interest income, net

9 

51 

Loss on equity investments

(337)

(553)

Gain (loss) on sale of financial assets

(8)

15 

Gain on conv. debt buyback

3 

- 

 LOSS BEFORE INCOME TAXES

(1,496)

(823)

  AND NONCONTROLLING INTEREST

Income tax benefit

95 

43 

 LOSS BEFORE NONCONTROLLING INTEREST

(1,401)

(780)

Net loss (income) attributable to noncontrolling interest

270 

(6)

 NET LOSS ATTRIBUTABLE TO PARENT COMPANY

(1,131)

(786)

 LOSS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

(1.29)

(0.88)

 LOSS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

(1.29)

(0.88)

 NUMBER OF WEIGHTED AVERAGE

 SHARES USED IN CALCULATING

876.9 

892.0 

 LOSS PER SHARE