GENEVA, SWITZERLAND: STMicroelectronics announced that Intel, Francisco Partners and ST have agreed to extend the deadline for the closing of Numonyx, the joint flash memory venture, to March 28, 2008.

The three parties continue to work to satisfy the conditions to closing for the transaction, and expect the closing to take place in Q1 2008.

ST announced that the parties have received executed bank commitments for the financing of Numonyx, following the significant turmoil in the debt capital markets. The revised financing terms involve a senior loan of up to $650 million, and a $100 million committed revolving credit facility for Numonyx.

As anticipated, at closing Francisco Partners will invest $150 million in exchange for a 6.3% shareholding. In exchange for its contribution of its flash memory business, ST will receive 48.6 percent of Numonyx's shares and $364 million through a combination of cash (in the range from low double digits to $130 million) and long-term subordinated interest-bearing notes.

In its financial statements for the fourth quarter of 2007, ST expects to recognize adjustments to its previously estimated non-cash impairment loss, net of tax benefits, related to this transaction.

Based on the finalized financing structure, at closing Numonyx is expected to have a similar level of net cash, with lower indebtedness, than originally anticipated.

After closing, Numonyx will be the industry's largest supplier of NOR flash memory and a leader in nonvolatile memory solutions with a substantial patent portfolio.

Intel, Francisco Partners and ST intend for Numonyx to hit the ground running, with an energized and independent work force, substantial intellectual property, modern and well-equipped manufacturing facilities, and a broad and diverse customer base.