Nortel Teams With China Putian

China Putian and Nortel establish joint venture for 3G telecom equipment and solutions

January 20, 2005

1 Min Read

BEIJING -- China Putian Corporation and Nortel (NYSE:NT) (TSX:NT) today signed a Joint Venture Framework Agreement (JVFA) to establish a joint venture for research and development (R&D), manufacture and sale of third generation (3G) mobile telecommunications equipment and products to customers in China. China's Premier Wen Jiabao and Canada's Prime Minister Paul Martin, currently on an official visit to China, witnessed the signing ceremony.

Under the JVFA, China Putian and Nortel agree to prepare and negotiate with each other on a definitive joint venture agreement by June 30, 2005.

When established, the new company - named Putian-Nortel Networks Telecommunications Equipment Co., Ltd. - will likely be headquartered in Wuhan, capital of Hubei Province, and will focus on TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) and WCDMA (Wideband CDMA) products and solutions, as well as related network engineering and optimization services. China Putian will own 51 percent of the joint venture; Nortel, the remaining 49 percent.

"The signing of today's JVFA signals a new level of cooperation between Nortel and Putian," said Xing Wei, president, China Putian. "It will position us to capitalize on the tremendous opportunities presented by China's rapidly growing wireless industry and to significantly accelerate the internationalization of our 3G offerings."

Nortel Networks Ltd.

China Putian

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