SEP 22,2003 0:05 PACIFIC 3:05 EASTERN
( BW)(TOSHIBA/SAMSUNG) Toshiba and Samsung Electronics to Integrate
Optical Disk Device Businesses
Business Editors/High-Tech Writers
TOKYO & SEOUL--(BUSINESS WIRE)--Sept. 22, 2003--Toshiba
Corporation and Samsung Electronics Co., Ltd. today signed a
memorandum of terms covering integration of their respective
optical-disk-drive businesses in a joint venture. The two companies
will now finalize details of the agreement in readiness for
incorporation of the joint venture.
The new joint venture will bring together product and business
planning, product development, procurement and sales for optical-disk
drives (ODD), including CD-ROM and DVD-ROM drives. The new company
will be 51% owned by Toshiba and 49% owned by Samsung Electronics and
consolidated by Toshiba. The JV will be headquartered in Japan, while
its wholly owned subsidiary established in Korea will control
operations there.
The scale of the combined operation will position the joint
venture among the world leaders in the ODD business. With 2002 annual
sales exceeding 200-billion yen, the collaboration is expected to
further enhance its global position.
The optical-disk-drive business faces fast changing customer
requirements for faster, slimmer drives, and a rapid transition in the
main product to recordable DVD drives. Price erosion and alliances are
also making themselves felt and further intensifying competition. In
this environment, advantages in technology, product development and
price competitiveness are all crucial for survival.
The new joint venture will construct a competitive business
structure that can promote optimized use of management resources and
leadership in the global market.
About Toshiba Corporation
Toshiba Corporation is a leader in information and communications
systems, electronic components, consumer products, and power systems.
The company's integration of these wide-ranging capabilities assures
its position as a leader in semiconductors, optical-disk drives, HDDs,
PCs, mobile consumer products, and other electronic devices. Toshiba
has 166,000 employees worldwide and annual sales of over US$47
billion. Visit Toshiba's web site at:
http://www.toshiba.co.jp/index.htm.
About Samsung Electronics
Samsung Electronics Co., Ltd. is a global leader in semiconductor,
telecommunications, and digital convergence technology. Samsung
Electronics employs approximately 75,000 people in 89 offices in 47
countries and business performance for 2002 account for 49.6 billion
US$ in sales and 5.9 billion US$ in net income. Samsung Electronics is
the world's leading company of advanced semiconductors, TFT-LCDs, CDMA
mobile phones, monitors and VCRs. Samsung Electronics consists of four
main business units: Device Solution Network, Digital Media Network,
Telecommunication Network and Digital Appliance Network Businesses.
More information can be found at http://www.samsung.com.
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CONTACT: Toshiba Corporation
Midori Suzuki, ++81-3-3457-2105
press@toshiba.co.jp
or
Samsung Electronics Co., Ltd.
Sunghae Park, ++82-31-209-7037
sunghae@sec.samsung.com
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473