HMD global Founded to Create New Generation of Nokia-branded Mobile Phones and Tablets

Helsinki, Finland (ots/PRNewswire) - Nokia-branded mobile phones and
tablets are set to return to the global consumer market, created by a
new company, HMD global Oy ("HMD"). HMD has been founded to provide a
focused, independent home for a full range of Nokia-branded mobile
phones and tablets.

HMD has signed a strategic licensing agreement with Nokia
Technologies, the advanced technology and licensing unit of Nokia
Corporation, giving HMD sole use of the Nokia brand on mobile phones
and tablets worldwide for the next decade, and cellular standard
essential patent licenses.

HMD intends to leverage and grow Nokia's global brand reach,
delivering beautifully designed, high quality products to people all
over the world in line with Nokia's brand promise. HMD intends to
invest over USD 500 million over the next three years to support the
global marketing of Nokia-branded mobile phones and tablets, funded
via its investors and profits from the acquired feature phone
business.

To complete its portfolio of Nokia branding rights, HMD has
conditionally agreed to acquire from Microsoft the rights to use the
"Nokia" trademark on feature phones until 2024, and design rights
relating to Microsoft's Feature Phone Business. This transaction is
expected to close in H2 2016. Together, these agreements will make
HMD the sole global licensee for all types of Nokia-branded mobile
phones and tablets.

The remainder of Microsoft's feature phone business assets, including
its Hanoi manufacturing facility, and global distribution, fulfilment
and supply chain networks, will conditionally be acquired by FIH
Mobile Limited ("FIH"), a subsidiary of Hon Hai Precision Industries
(trading as Foxconn Technology Group). HMD has signed an agreement
with FIH and Nokia Technologies to establish, on closing of the
Microsoft transactions, a collaboration framework to support the
building of a global business for Nokia-branded mobile phones and
tablets. This agreement will give HMD full operational control over
sales, marketing and distribution of its Nokia-branded devices, with
exclusive access to the pre-eminent global sales and distribution
network to be acquired by FIH from Microsoft, as well as access to
FIH's world-leading device manufacturing and engineering
capabilities, and its growing suite of proprietary mobile
technologies and components.

HMD is entering the global handset market at a time when consumers
demand their mobile devices be part of a strong ecosystem that brings
a compelling user experience delivered at a competitive price. HMD
plans for its future Nokia-branded smartphones and tablets to run on
the Android operating system, uniting one of the world's iconic
mobile brands with the leading mobile software and app development
community.

HMD will be managed by an experienced group of mobile industry
leaders. Arto Nummela, who previously held senior positions with
Nokia and is currently the head of Microsoft's Mobile Devices
business for Greater Asia, Middle East and Africa as well as
Microsoft's global Feature Phones business, will serve as CEO on
closing of the Microsoft transaction. HMD's President on closing will
be Florian Seiche, currently Senior Vice President for Europe Sales
and Marketing at Microsoft Mobile, who previously held leadership
roles at Nokia, HTC and other global brands.

Arto Nummela, CEO of HMD global, said:

"We will be completely focused on creating a unified range of
Nokia-branded mobile phones and tablets, which we know will resonate
with consumers. Branding has become a critical differentiator in
mobile phones, which is why our business model is centered on the
unique asset of the Nokia brand, and our extensive experience in
sales and marketing. We will work with world class manufacturing and
distribution providers to move quickly and deliver what customers
want."

Ramzi Haidamus, president of Nokia Technologies, said:

"Today marks the beginning of an exciting new chapter for the Nokia
brand in an industry where Nokia remains a truly iconic name. Instead
of Nokia returning to manufacturing mobile phones itself, HMD plans
to produce mobile phones and tablets that can leverage and grow the
value of the Nokia brand in global markets. Working with HMD and FIH
will let us participate in one of the largest consumer electronics
markets in the world while staying true to our licensing business
model."

Vincent Tong, Chairman of FIH, added:

"We are looking forward to fostering a strong and long-term
collaboration with HMD global and Nokia. We are impressed by the
experience and expertise of the HMD management team and are committed
to supporting them with our manufacturing, technology and supply
chain capabilities, to capture market opportunities together in the
future."

Subject to receipt of all necessary regulatory approvals the
transaction between HMD and Microsoft is anticipated to close in the
second half of 2016. HMD will make further announcements about its
plans and product roadmaps in due course.

Registered and headquartered in Helsinki, Finland, HMD is owned by
Smart Connect LP, a private equity fund managed by Jean-Francois
Baril, a former Nokia executive, as well as by HMD management. The
Board of HMD will consist of five members, including one
representative from Nokia.

About HMD global

Registered and headquartered in Helsinki, Finland, HMD is a new
private venture founded to create a new generation of Nokia-branded
mobile devices. HMD will be run by a group of experienced industry
leaders, including CEO-designate Arto Nummela, who previously held
senior roles at Nokia and is currently the head of Microsoft's Mobile
Devices business for Greater Asia, Middle East and Africa as well as
Microsoft's global Feature Phones business, and president-designate
Florian Seiche, who is currently Senior Vice President for Europe
Sales and Marketing at Microsoft Mobile, and previously held key
roles at Nokia, HTC and other global brands. http://www.hmdglobal.com

About FIH Mobile Ltd

FIH MOBILE LIMITED (HKEx Stock Code: 2038), a member of HON
HAI/FOXCONN Technology Group, is a vertically integrated services
provider for the mobile device industry worldwide. It provides a full
range of solutions to its customers in connection with end-to-end
mobile devices business.

ORIGINAL APA-OTS TEXT - THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO THE EXCLUSIVE RESPONSIBILITY OF THE ISSUER | PRN

print