Nortel Networks and EADS to Adjust Ownership in French and German Operations to Better Leverage Key Business Strategies
Toronto/Amsterdam, 18 July 2003
Nortel Networks (NYSE/TSX: NT) and EADS (stock exchange symbol: EAD) will re-organize their joint telecommunications activities in France and Germany. The companies jointly announced on Friday the increase of their respective individual ownership in, and direct control over, their core businesses in France and Germany, consistent with each of their overall global business strategies.
Nortel Networks will acquire the 42 percent ownership interest in Nortel Networks Germany GmbH & Co. KG and the 45 percent ownership interest in Nortel Networks France SAS, currently held by EADS. When completed, these transactions will bring Nortel Networks ownership in each company to 100 percent. Nortel Networks Germany and Nortel Networks France are responsible for the sales and marketing of Nortel Networks products in those markets. At the same time, EADS will increase its ownership in EADS Telecom, the integrator of EADS turnkey, secure defence-related telecommunications solutions, from 59 percent to 100 percent as a result of acquiring Nortel Networks current ownership stake in that company.
The announced transactions are subject to the receipt of customary regulatory approvals, which are expected to be received within the third quarter. Nortel Networks and EADS will continue to work together through technology and commercial agreements in those markets as well as outside of Europe.
"Nortel Networks has enjoyed a strong and growing European presence for a number of years," said Steve Pusey, President, EMEA (Europe, Middle East, Africa), Nortel Networks. "Establishing 100 percent ownership in Nortel Networks France and Nortel Networks Germany will reinforce our commitment to these markets, our customers and our core differentiators. It is also indicative of our continued focus on growth markets and offering one of the industry’s most comprehensive solutions portfolios."
"With this step, EADS will concentrate its world-wide telecommunications activities on defence and homeland security solutions," stated Tom Enders, Chief Executive Officer, Defence & Security Systems Division. "State-of-the-art communication technologies and networks are at the very heart of military transformation and domestic security programmes of our various customers. This is why the complete control of EADS Telecom greatly enhances our strategy to provide innovative communication systems solutions."
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable valued-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel can be found on the web at www.nortelnetworks.com.
EADS is the second largest aerospace and defence company in the world with revenues of € 29.9 billion in the year 2002 and a workforce of more than 100,000. It is a systems integrator and as such is one of the few companies worldwide capable of combining various products and technologies to form complete systems. EADS is a market leader in civil aeronautics, defence and security technology, helicopters, launchers, satellites, military transport and combat aircraft and the associated services. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and MBDA ( a joint venture), the second largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo. EADS has over 70 sites in France, Germany, Great Britain and Spain and is active in many regions worldwide, amongst them America, Russia and Asia.
For more information:
Nortel Networks:
Sabine Werb +49 – 69 - 66971906
EADS
Rainer Ohler +49 – 89 607 34235
Roland Sanguinetti +33 – 1 4224 24 26
Miguel Sanchez +34 – 91 585 77 89
