| Tokyo, Japan -- February 14, 2006 – SANYO Electric Co., Ltd.
(SANYO) and Nokia Corporation (Nokia) today announced a preliminary
agreement with intent to form a new global company comprised of their
respective CDMA mobile phones businesses- separate from the parent
companies. While the details of the agreements are still to be finalized,
it has been agreed that the new entity will be operated in the spirit
of partnership. The resulting company will have major operations in
Osaka and Tottori, Japan and San Diego, USA. The relevant assets from
both companies will be contributed or made available for the new entity.
Final agreements are expected to be signed in the second quarter of
2006, with the new business expected to commence operations in the
third quarter 2006, provided that the due diligence has been completed
and all necessary regulatory approvals obtained. It is expected
that the new company will benefit by combining both parties’
complementary CDMA businesses to achieve a leading position within
the global CDMA mobile phones market. SANYO has strong R&D expertise,
leadership position and well-known brand in high-end and mid-range
CDMA handsets. It also maintains strong relationships with CDMA
operators in Japan and North America. Nokia brings to this new entity
its world-renowned brand, demand supply expertise, a solid entry-level
and mid-range CDMA mobile phones product portfolio and well-established
relations with over 60 CDMA carrier customers around the globe.
SANYO’s President, Toshimasa Iue said, "In addition
to making possible the supply of even better products to our current
customers, this new company will also lead to raising our position
in the global market." He added, "I am confident that
integrating Nokia’s strong brand with SANYO’s ability
to meet market needs will lead to the building of a very strong
partnership in the CDMA industry."
"Meeting and exceeding our customers’ expectations is
the key priority that drives Nokia every day," said Olli-Pekka
Kallasvuo, President and Chief Operating Officer, Nokia. "We
identified this new company as the best way to create an attractive
CDMA phone portfolio for our customers with the widest possible
product offering at the high-end, mid-range and entry levels. We
estimate that the creation of this separate, associated company
will provide Nokia with financial benefits from start. It also offers
both parties access to R&D competencies that complement their
own internal strategies."
About SANYO
SANYO is a leading provider of Environment and Energy-related products,
with a new vision - ‘Think GAIA’, which aims to create
solutions for a sustainable Earth by synergizing SANYO’s core
technologies, such as photovoltaic systems, rechargeable batteries,
CO2 compressors, HEV battery systems as well as digital cameras,
mobile phones, electronic devices and components, etc. For further
information, please visit SANYO's web site at http://www.global-sanyo.com/.
About Nokia
Nokia is a world leader in mobile communications, driving the growth
and sustainability of the broader mobility industry. Nokia connects
people to each other and the information that matters to them with
easy-to-use and innovative products like mobile phones, devices
and solutions for imaging, games, media and businesses. Nokia provides
equipment, solutions and services for network operators and corporations.
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