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Date Posted: 04:15:23 02/16/03 Sun
Author: Richard Court
Subject: By 2001 ERG will have manufactured up to $400 million worth of base station equipment for Nokia.
In reply to: Dominique Proton Global PLatform Business chair Oct 1999 to 2000 's message, "Re: Nokia Leads M-commerce Evolution in Asia with Built-in Octopus Card Accessory" on 04:04:47 02/16/03 Sun


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Date Of Media Release 18/08/1999
Title ERG and Nokia Reaffirm Relationship
Contact Wendy Watson-Ekstein
Phone +61 8 9273 1100
Fax +61 8 9273 1208
Email wendywe@erggroup.com
Division ERG Telecommunications

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ERG and Nokia Reaffirm Relationship
ERG Telecommunications and Nokia today announced the continuation of their long-standing collaboration with a Memorandum of Understanding (MoU) agreeing the principles for ERG to manufacture Nokia GSM base station equipment until the end of the 2001 calendar year.

The ERG Nokia relationship was established in 1992 when ERG won an initial three year contract to manufacture Nokia base stations to support the deployment of the Optus GSM network.

The relationship has now grown to a point where ERG manufactured base stations have been integrated into Nokia supplied GSM networks in Australia, New Zealand, South-East Asia, China and Europe.

By 2001 ERG will have manufactured up to $400 million worth of base station equipment for Nokia.

The MoU reaffirms ERG Telecommunications' position as one of the most successful and innovative players in the Australian telecommunications manufacturing sector.

The announcement was welcomed by the Premier of Western Australia, Richard Court who witnessed the MoU being signed by the two companies.

"The relationship that has been forged between ERG and Nokia is testament to the growing maturity and development of the WA economy," Mr Court said.

"The alliance has brought significant benefits to our State and is an excellent example of a successful collaboration between a leading global organisation and a successful Australian company.

"Since ERG began manufacturing Nokia equipment, the Group has employed 150 people specifically for the Nokia business - significantly increasing the skills base in electronics manufacturing within our State.

"The Company has also invested in excess of $25 million into its manufacturing facility in Balcatta."

Mr Court said ERG's growth reflected the trend being experienced across the communications industry.

"In the past five years, employment in the communications industry in Western Australia has grown by an average 6.2 per cent annually - compared with 2.8 per cent growth across all industries," he said.

"Exports in communications services have also increased at an average annual rate of 15.3 per cent."

Mr Court said he welcomed Nokia's decision to reaffirm its commitment to ERG and the WA economy.

"At a time when some multinational companies are winding down their manufacturing operations in Australia it is encouraging to see Nokia reaffirm its commitment to our information technology and telecommunications industry," he said.

ERG Chief Executive Officer, Peter Fogarty said the Nokia relationship was pivotal in the early development of ERG.

"The Nokia relationship has allowed us to invest continuously in our manufacturing facility since 1992.

"Our Perth facility is now world class from a cost, quality, lead time and delivery perspective. The competencies and skills developed in working with Nokia are key in ERG exploiting the major transit systems contracts recently awarded to ERG."

Senior Vice President Nokia Telecommunications, Asia Pacific, Kari Ahola, said: "I am very pleased and honoured to be a part of, once again, the signing of the ERG Nokia collaboration agreement to manufacture Nokia state-of-the-art GSM base stations for the Australian and Asian markets.

"In Australia the penetration of mobile customers is approaching 40 per cent and is one of the highest worldwide. Mobility and data services are driving the future mobile market and Nokia's vision is to put the Internet into every pocket.

"Nokia is proud to lead the way in Australia, with ERG and its other Australian partners, towards the future mobile information society."

--END-

BACKGROUND INFORMATION

ERG Group

The ERG Group is a world leader in the development and supply of automated fare collection equipment and software systems for the transit industry; technologically advanced smart card systems and services; and telecommunications infrastructure, equipment manufacturing and service delivery.

Headquartered in Western Australia, the ERG Group has a global presence with manufacturing facilities in Western Australia and Belgium and 20 offices in 12 countries across 4 continents providing strong marketing and customer support to cities around the globe. The ERG Group employs approximately 1,400 people worldwide and has a range of alliance partners supporting its operations and business opportunities around the world.

In 1997/98 ERG Group revenue totalled A$242 million across its businesses: automated fare collection, smart card systems, and telecommunications.

For more information on ERG, visit: www.erggroup.com

Nokia

Nokia is a leading global company focused on the key growth areas of wireline and wireless telecommunications.

It is the world's largest manufacturer of mobile phones and one of the two leading suppliers of GSM based cellular networks. With more than 44,000 employees, Nokia's GSM technology has been sold to 72 operators in 36 countries. Net sales totalled FIM 79.2 billion in 1998.

Nokia and ERG have had a long-standing alliance which had its origins in the Australian Government's Partnership for Development (PfD) program. ERG Telecommunications provides manufacturing and operations support for Nokia in the South-East Asia Pacific Region, including the manufacture of their GSM Base Stations.

For more information on Nokia, visit: www.nokia.com

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