- Favourable arrangement gives cost saving as anticipated and sustainable growth momentum and further extends the scope of products
HONG KONG, Sept. 22, 2011 /PRNewswire-Asia/ -- TCL Communication Technology Holdings Limited ("TCL Communication" or the "Company", together with its subsidiaries referred to as the "Group"; HKSE stock code: 02618) is pleased to announce that a wholly-owned subsidiary of the Group has entered into an extended license fee agreement for use of certain trademarks owned by Alcatel-Lucent ("Amended License Agreement"). Our management believes that the Amended License Agreement will enable the Group to save a substantial amount of royalty expenses.
Under the terms of the Amended License Agreement, the Group will pay Alcatel-Lucent a US$40 million license fee for the use of the ALCATEL brand name for certain of its products from July 1, 2011 until December 31, 2024. The payment will be made through self-generated cash flow and/or bank facility financing if necessary.
Currently, the Group pays Alcatel-Lucent a license fee based on the sales of ALCATEL ONE TOUCH handsets. Under the Amended License Agreement, the upcoming license fee will be fixed at US$40 million for the next 13.5 years and the scope of use will be extended beyond mobile phones to include smartphones, tablets, mobile broadband modems and wireless network appliance devices and equipment.
The Amended License Agreement with Alcatel-Lucent will strengthen the ALCATEL ONE TOUCH branding, enabling it to support the development of our product portfolio in line with the explosive consumer demand for wireless data services.
About TCL Communication
TCL Communication Technology Holdings Limited (stock code: 02618), together with its subsidiaries, design, manufacture and market an expanding portfolio of mobile and internet products worldwide under two key brands -- "ALCATEL ONE TOUCH" and "TCL". The Group's portfolio of products is currently sold in the PRC and over 120 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific. TCL Communication operates its highly efficient manufacturing plants and R&D centres in various provinces of the PRC with headquarters in Shenzhen, China. For more information, please visit its website at http://tclcom.tcl.com.
For further enquiries, please contact Hill & Knowlton Asia Ltd.:
Email: tclcomm@hillandknowlton.com.hk
| Crystal Yip Tel: (852) 2894 6211 / 9720 6445 |
Erica Liu Tel: (852) 2894 6252 / 5136 8460 |
