Qualcomm Inc (QCOM)

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Beijing Board Meeting Confirms Sony Ericsson's Commitment to China
Posted Wednesday, December 8, 2004

http://www.phonecontent.com/bm/news/se/648.shtml

Sony Ericsson Mobile Communications AB reaffirmed its commitment to the Chinese market when it held a meeting of its Board of Directors in Beijing today. All board members attended, including Carl-Henric Svanberg, President and CEO of Telefonaktiebolaget LM Ericsson, Sony Corporation President Kunitake Ando and Sony Ericsson President Miles Flint.

Since Sony Ericsson launched its Chinese operations in October 2002 it has consistently demonstrated its commitment to this strategically important market. This is the second Board meeting to be held in Beijing and occurs in a year that has seen a number of milestone developments for Sony Ericsson in China. For example, on June 30, Sony Ericsson announced the establishment of Beijing Ericsson Putian Mobile Communications Co. Ltd (BMC) with a majority share holding of 51%, and at the same time it elevated its Beijing R&D group to Development Unit China status, to become one of four key global R&D centres. In September, Sony Ericsson Mobile Communications (China) Co., Ltd moved its China headquarters to a new office in Wang Jing High-tech Hub, the future telecommunications hub planned by the Beijing Municipal Government.

Carl-Henric Svanberg comments: "Our continued success is constant proof that Sony and Ericsson is a perfect match that combines Sony's outstanding know-how in consumer electronics and imaging with Ericsson's state of the art mobile communications technology. We are very pleased that this formula is showing success in China, where we are enjoying a strengthened market position."

Kunitake Ando comments: "Sony is committed to the long-term success of Sony Ericsson, and I am especially proud of our results here in China. We view China as a market that will be the source of growth for the company for many years to come."

Miles Flint adds: "In the third quarter of our current fiscal year China became our largest single market in terms of volume. We are happy to see that the hard work Sony Ericsson China has done to create a winning team of local talent that produce products that 'wow' our customers as well as satisfy them is bearing fruit. Holding our second board meeting in this strategically important market is a great opportunity for the Board to recognise this hard work and to provide support in developing our future growth strategy for this region."

Sony Ericsson is one of the fastest growing mobile communications brands worldwide. Units shipped in the Q3 2004 reached 10.7 million, a 51% increase compared to the same period last year. Sales for the quarter were Euro 1,678 million, representing a year-on-year increase of 29%. Income before taxes was Euro 136 million and net income was Euro 90 million, which represent year-on-year improvements of Euro 97 million (249%) and Euro 28 million (45%) respectively.

Sony Ericsson has entered the second phase of development, aiming for sustainable and profitable growth, and strives to be the most attractive and innovative global brand in the mobile handset industry.