Sagem Communication and Ningbo BIRD reinforce their partnership in mobile phones

Press release: Paris, September 8, 2005 – SAFRAN Group announces the signature of a MoU (Memorandum of Understanding) by its subsidiary Sagem Communication and the Chinese company Ningbo BIRD, in order to reinforce their partnership.

Sagem Communication and Ningbo BIRD begun their collaboration back in 1999 through the sales in China by Ningbo BIRD of products based on Sagem Communication technology.
In 2002, a new step was taken with the set up of the Joint Venture (50/50): Ningbo BIRD SAGEM Electronics Corporation Ltd. (NBBSE) which produces mobile phones. Today, NBBSE employs 2,030 people.

Based on this existing partnership, Sagem Communication and Ningbo BIRD have decided to reinforce their world-wide position through this new MoU by creating a strategic alliance built on closer links at different levels.

Both companies have decided to co-ordinate their global strategy : sales of both brand products will be managed commonly. For an efficient customer management, sales coordination will be driven by Sagem Communication on the international market, and by Ningbo BIRD on the chinese market. Purchasing will be conducted commonly. Product quality will be placed at the highest standards. Joint experience and combined skills will enable both companies to reach these targets.

Finally, a new Joint Venture (50/50) dedicated to Research & Development will be created in Ningbo, China (Zhejiang province) with the mission to develop a common product range for SAGEM and BIRD brands. It will allow to optimise development costs for both companies while enlarging the product range and insuring a high quality level. This new Joint Venture would employ 1,000 engineers and technicians in the future who will complement the existing European Research and Development centres of Sagem Communication.

« In order to answer in a even faster and better way to customers’ needs, Ningbo BIRD and Sagem Communication are combining their strengths. This new milestone will reinforce our world-wide position on the mobile phones market » declared Grégoire Olivier, chairman and CEO of Sagem Communication and member of the executive board of SAFRAN Group.

« This strategic Alliance will allow Ningbo BIRD to reinforce its leadership on the Chinese market while selling a new product range with richer features and with an even higher level of quality. In addition, our international sales will be developed through the world-wide sales channels of SAFRAN Group to which our partner Sagem Communication belongs to» declared Xu Lihua, chairman of Ningbo BIRD.

About SAFRAN
SAFRAN is an international high-technology group with four core businesses: propulsion, communications, equipment, defense security. It has 56,000 employees in over 30 countries, and annual revenues exceeding 10 billion euros. The SAFRAN group comprises a number of companies with prestigious brand names, and holds, alone or in partnership, global or European leadership positions in all of its markets.
For more information, please visit our Web site: http://www.safran-group.com/

About Sagem Communication
Sagem Communication (SAFRAN Group) is a major player in the Mobile and Broadband Communication industries, who has acquired a strong world-wide position thanks to renewed innovation. SAGEM products stand-out particularly in the following activities: mobile phones, printing terminals, residential terminals, digital TV, networks, electronic metering and cables, etc. For more information, please visit our Web site: http://www.sagem.com/

About Ningbo BIRD
Ningbo BIRD Co. Ltd is a stock listed high-tech company specialized in R&D, manufacturing and marketing mobile communication equipment. It is the first Chinese mobile maker having been granted the certification by the National Science & Technology Department and the Chinese Academy of Science.
Please consult the BIRD web site: http://www.birdmobile.com.cn/


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