Nokia and SANYO Announce Intent to Form Global CDMA Mobile Phones Business

Nokia and SANYO have 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. The new entity will operate as a partnership and have major operations in San Diego, USA as well as Osaka and Tottori, Japan.

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' CDMA businesses to achieve a leading position within the global CDMA mobile phones market. Nokia brings to this resulting entity the strength of its 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 has a leadership position in mid-range and high-end CDMA handsets and maintains strong relationships with CDMA operators in Japan and North America.