MEDIA RELEASE PR38081
LG-Nortel, Accton Sign Agreement to Establish Joint Venture for North America
SEOUL, Jan. 28 /PRNewswire-AsiaNet/ --
Joint Venture Will Target SMB and Enterprise Market in USA and
Canada With End-to-End Solutions
LG-Nortel, a Korean global telecommunications solution provider and
Accton Technology Corporation, a Taiwanese global telecommunications
equipment company, today announced that they signed an agreement to form a
joint venture that will offer voice and data solutions for North American
small and medium businesses (SMBs) and large enterprises.
The agreement was signed in Hsinchu, Taiwan by Jae Ryung Lee, chief
executive officer of LG-Nortel and A.J. Huang, the chairman of Accton Group.
LG-Nortel will own a 60% share in the joint venture and Accton Group will own
40%. The new company will be tentatively named Edgecore Networks Inc., which
was a subsidiary of Accton and a specialized North American sales company for
network solutions. And the joint venture will be established by mid February
from headquarters in Irvine, California, USA.
The joint venture will combine the SMB voice and data product expertise
of LG-Nortel with Edgecore Networks' marketing and sales capability, SMB
channels, and logistics skills. Combining these capabilities will position
the joint venture to take full charge of the SMB and enterprise equipment
business of LG-Nortel and Accton across the USA and Canada. Both companies
will cooperate in every aspect of their businesses including R&D,
manufacturing, marketing, new business development, and brand use.
"LG-Nortel is taking another bold step in North America," said Lee. "Like
LG-Nortel, Accton is an innovative leader in its market. This partnership
will provide significant new opportunities to reinforce our brand, increasing
our global competitiveness and helping our customers embrace the future
opportunities and challenges of the converged communications market."
"The establishment of this joint venture will significantly enhance
LG-Nortel's presence in North America," said Leith Tessy, chief operating
officer of LG-Nortel. "Businesses have more complex communications challenges
than ever, and the combination of our companies' respective strengths will
provide an unparalleled opportunity to help them meet those challenges."
"The demands of North American customers are directly connected to the
overall trend towards global communication," said Huang. "The brand value and
voice platform technology that LG-Nortel provides, paired with Accton's
distribution and manufacturing capacity, and our local network reach, will
make this joint venture a powerful combination that will deliver significant
benefits for companies across North America."
North America's highly-competitive SMB telecommunications solution is
expected to comprise 27% (US$5.7B) of the global market in 2010. Through the
joint venture, LG-Nortel will bring its telecommunications solutions directly
to the North American SMB and enterprise market. With a broad portfolio
including LG-Nortel's voice products and Accton's data products, the joint
venture will help both companies strengthen their position in the highly
competitive convergence market.
About LG-Nortel
LG-Nortel is a joint venture of LG Electronics and Nortel. Established in
2005, LG-Nortel provides leading edge telecommunications equipment and
network solutions, spanning wired and wireless technologies, to service
provider and enterprise customers in Korea and around the world. LG-Nortel is
also actively developing next generation solutions for global markets, with
over 750 skilled R&D engineers currently focused on wireless broadband
technology evolution and the development of powerful new product lines. For
more information on LG-Nortel, visit www.lg-nortel.com.
About Accton Technology Corporation
Accton Technology Corporation (TAIEX: 2345) is a global premier provider
of networking and communications solutions for top tier networking, computer,
and telecommunications vendors. Leveraging its advanced software applications
and state-of-the-art ASIC, Accton collaborates with its strategic partners to
design, develop and manufacture innovative, leading-edge technologies in Zero
Time. The company's constantly-evolving core technology and its
highly-qualified global workforce make it possible for Accton to deliver
superior products that are affordable and robust. For more information about
About Edgecore Networks, Inc.
Edgecore Networks, Inc., formerly a subsidiary of Accton Technology, was
a global provider of application-driven performance networking solutions
designed to meet and exceed customer requirements and maximize return on
investment. As a joint venture between LG-Nortel and Accton, it will focus on
SMB &Enterprise business across the USA and Canada with a broad portfolio
including voice and data products. For more information, visit Edgecore
* LG-Nortel and the LG-Nortel logo are trademarks of
LG-Nortel.
* Accton and the Accton logo are trademarks of Accton
Technology Corporation.
* Edgecore Networks and the Edgecore Networks logo are trademarks or
registered trademarks of Edgecore Networks in the United States and/or other
countries.
SOURCE LG-Nortel
CONTACT: Bohyun Kim of LG-Nortel, +82 2 2005 2128, kimvo@lg-nortel.com;
or Frank Kuo, +886 3 577 0270
NEWS 
