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The following information is true and accurate at the time of publication.
April 24, 2001
Ericsson and Sony to Create World leader in Mobile Phones
- Combining leading expertise in telecommunications and
consumer electronics
- Ideal partnership for growing market of 3G and Mobile Internet
Tokyo (Japan), Stockholm (Sweden) - April 24, 2001 - Ericsson and
Sony Corporation today jointly announced that they have signed a Memorandum
of Understanding (MoU) with the intention to create a new company that
will incorporate their respective mobile phone businesses worldwide. The
new company, to be named Sony Ericsson Mobile Communications, will be
equally owned by Ericsson and Sony and will draw upon Ericsson's leading
expertise in telecommunications and Sony's leading expertise in consumer
electronics products.
Expected to begin operations on October 1st this year, subject to completion
of a definitive agreement and applicable regulatory requirements, the
joint venture will be responsible for product research, design and development,
as well as marketing sales, distribution and customer services. Ericsson
and Sony, parents of the joint venture, will provide support to the new
company, and foster closer cooperation with each other.
"By combining the complementary strengths of Ericsson and Sony, the new
company is uniquely positioned to become a world leader in telecommunications,
as the industry moves rapidly toward Mobile Internet," said Kurt Hellstrom,
Ericsson President and CEO. "We are a perfect match. Sony brings vast
experience in consumer electronics and entertainment - music, pictures
and games - and Ericsson contributes with our mobile technology lead and
the world's largest customer base among mobile operators. This is the
ideal partnership for the growing market of 3G and Mobile Internet."
Sony Corporation President and Chief Operating Officer Kunitake Ando said
"The mobile phone industry is fast moving toward multi-media broadband
and poised to grow significantly in the years to come. Millions of customers
will require mobile handsets that can handle rich content such as movies,
pictures and games smoothly and effortlessly, regardless of their location.
Our collaboration with Ericsson, the undisputed leader in the global telecommunications
industry, holds significance for us in creating an ubiquitous value network
that is always connected, on demand and interactive."
Global corporate management of the joint venture will be based in London
and headed by Katsumi Ihara, Corporate Executive Vice President of Sony
Corporation, who will be named President of the joint venture. Kurt Hellström,
President and CEO of Ericsson, will be appointed Chairman of the Board.
Jan Wareby, President of Ericsson's Consumer Products Division, will assume
the role of Executive Vice President of the joint venture.
While respecting existing product lines under the Ericsson and Sony brands,
the new company will create a new and powerful brand for its range of
future products. Ericsson's existing manufacturing partners and Sony's
production facilities will continue to manufacture current and future
products worldwide. Ericsson's Mobile Technology Platform unit will remain
as a separate organization and will supply state of the art technology
to the new company.
Outline of the New Company based on MoU
- Name of company:
- Sony Ericsson Mobile Communications
- Capital:
- Ericsson 50%, Sony 50%
(Details to be determined later)
- Start of operation:
- October 1, 2001
- Size of business:
- Fiscal year 2000 shipments: Approx. 50million units (Approx. US$7.2 billion)
*Reference figures based on parent companies' worldwide fiscal year sales
*Ericsson: January-December, 2000 / Sony: April 2000 - March 2001
- Board of directors:
- 4 from Ericsson (including 1 from the new company)
4 from Sony (including 1 from the new company)
[To be appointed Chairman of the Board is Kurt Hellström (President and CEO, Ericsson)]
- Corporate executive team:
- -President, Katsumi Ihara (Corporate Executive Vice President, Sony
Corporation)
-Executive Vice President, Jan Wareby (President, Ericsson's Consumer
Products Division)
- Estimated number of employees:
- Approx. 3,500 (worldwide)
- Products:
- Mobile phones and handheld multimedia communication products
- About Ericsson
- Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of Mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With presence in 140 countries, Ericsson simplifies communications for customers all over the world. Read more: www.ericsson.com/press
- About Sony Corporation
- Sony Corporation is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be a leading personal broadband entertainment company in the world. Sony recorded consolidated annual sales of more than $63 billion for the fiscal year ended March 31, 2000. Sony's Home Page URL:
www.world.sony.com
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