Nortel Teams With LG

LG Electronics, Nortel to establish joint venture to provide world-class telecom networking solutions for Korea and global markets

January 24, 2005

1 Min Read

SEOUL, South Korea -- LG Electronics (KSE:06657.KS) and Nortel(1) (NYSE: NT)(TSX: NT) today announced the signing of a Memorandum of Understanding (MoU) to establish a joint venture for providing high quality, leading edge telecommunications equipment and networking solutions to Korea and other markets globally.

The announcement of the proposed 50-50(2) joint venture framework was made in Seoul by S.S. Kim, CEO and Vice-Chairman of LG Electronics and Bill Owens, president and chief executive officer of Nortel.

This impending cooperation supports the strategies of both companies for ongoing development of leading-edge telecommunications equipment and networking solutions to ignite and power global commerce. The proposed joint venture also reflects the companies' commitment to leverage best-in-class resources and expertise by joining forces with leading telecommunications players in key markets.

The proposed joint venture is subject to execution of a definitive agreement. The two companies expect to complete this transaction in the second quarter of 2005. (2) In the proposed joint venture, Nortel has 50 percent plus one share.

LG Electronics Inc.

Nortel Networks Ltd.

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