TCL and Alcatel Tie for Handsets

TCL Communication and Alcatel have signed an MOU to form a joint venture company for R&D, sales, and distribution of mobile handsets and related products and services. In the new ˆ100 million JV, TCL Communication will hold 55 percent i and Alcatel 45 percent. The venture is expected to be completed during the third quarter of 2004.

While TCL Communication will contribute only cash, Alcatel will contribute cash and its mobile handset business. This business includes customer relationships, intellectual property, fixed assets, about 600 R&D professionals, sales and marketing executives, and the handset business management team.