Resulting company aims to be the global leader in CDMA mobile phones

Espoo, Finland/Osaka, Japan - Nokia and SANYO 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. The new entity will operate in the spirit of 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 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 has a leadership position in mid-range and high-end CDMA handsets and maintains strong relationships with CDMA operators in Japan and North America.
 
"Meeting and exceeding our customers' expectations is the key priority that drives Nokia every day," said Olli-Pekka Kallasvuo, President and Chief Operations Officer, Nokia. "We identified this new entity 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 timely access to R&D competencies that complement their own internal strategies."
 
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 the markets needs will lead to the building of a very strong partnership in the CDMA industry."
 
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. www.nokia.com
 
About SANYO
SANYO is a global consumer electronics giant, 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/.