BenQ-Siemens: New global mobile handset brand unveiled

Forged from a dynamic and complementary partnership between the former Siemens handset business and the Asian consumer electronics group BenQ, the new company will focus on expanding its product portfolio in the 3G arena and using the multimedia strengths of BenQ to create a clearly differentiated product proposition. With an objective to achieve a financially stable business by the end of 2006, BenQ Mobile has adopted two key principles to drive its business forward, focus and simplicity: focus on consumers & market proximity and simplicity across all operating structures to maximize efficiency.

Commencing operation on October 1, 2005 and headquartered in Munich, the BenQ-Siemens collaboration combines the best of German engineering quality and experience of the telecommunication sector gained over 150 years, with the lifestyle design expertise and speed to market of relative newcomer BenQ. The partnership benefits from the companies' respective expertise in R&D, design, customer reach and manufacturing and, most importantly, unites the cultural strengths of each company, under a 'winning culture' philosophy. Together BenQ Mobile is a unique and competitive manufacturer that will innovate and lead the speeding development of mobile technology and digital convergence, taking advantage of an increasingly Asia-centered mobile devices business.

Jerry Wang, Executive Vice President & Chief Marketing Officer of BenQ Corporation commented, "We have now successfully united the two companies at an operation level and today marks the start of the next phase in our development - to engage consumers worldwide with the spirit and energy of our combined BenQ-Siemens brand. I believe we have the focus, resources and passion to invigorate the market in 2006, especially in 3G and that our strategy will lead to a sustainable and successful handset business that commands a significant share of the market.

Supporting the repositioning of the company, BenQ Mobile has adopted an aggressive branding strategy and is committed to building a powerful, global consumer brand. Rooted in the theme of exploration, the BenQ-Siemens brand reflects both sides of the company in balance. Visually this is shown in the "squound" shape between the words 'BenQ' and 'Siemens'; the union of a square (representing rational thinking) and round (representing emotional touch), and by the colour purple, which fuses the emotional colour red with rational blue. Beyond graphics the spirit of the new brand will engage consumers that share BenQ-Siemens curiosity and excitement about the possibilities of mobile technology.

Clemens Joos, CEO BenQ Mobile said "We want to excite consumers that share our belief in creativity and ability of technology to enrich everyday communication. The new BenQ-Siemens brand embodies this attitude and during 2006 we will be challenging expectations - not only in the products we launch but also in the way we communicate. We have a hugely passionate and experienced team driving this new company and we will build on the existing equity in both brands across the world, to move forward with confidence."

Additionally, to mark the launch of BenQ-Siemens, the company unveiled today the first three products to carry the new joint brand name - EF81, S68 and S88. All feature slim design and premium metallic finishing but it is the EF81 in particular that provides an indication of the future roadmap: miniaturization of high speed UMTS technology in an ultra thin magnesium clamshell design. BenQ-Siemens has committed that at least a third of its products launched in 2006 will be 3G and that there will be a significant focus on multimedia; every three out of four products featuring a music player or FM radio and every second phone offering a minimum 1.3 mega pixel camera. From a design perspective BenQ-Siemens will create elegant yet surprising devices that build on the respective expertise of the two companies. BenQ is renowned for its award-wining design, scooping 115 international design awards in less than four years years (2002-06) and Siemens has always had a reputation for ingenuity, introducing both the first slider and mp3-phone.

BenQ Mobile moves into 2006 with the aim to improve its bottom line quarter-on-quarter and achieve financially stable business by the end of the year. The company is already seeing the results of its first 100 days of operation under an invigorated leadership team. It has achieved a reduction of operational losses (Q3oQ4 in CY05). Operators have reacted positively to the new roadmap, which features a high number of 3G and multimedia rich products, and many flagship handsets are now confirmed to be listed across key regions. The new BenQ-Siemens brand launched today lies at the heart of the company's aggressive business strategy and is underpinned by a competitive strategy, philosophy and product roadmap for a successful and sustainable future.  www.benq-siemens.com