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ReSound Nexia - February 2024

GN Great Nordic Takes Over Joint Venture in China


EAC-GN Communication Equipment markets and distributes primarily advanced measuring and test equipment from GN Nettest in China and, to a lesser extent, headsets from GN Netcom.

The Chinese telecommunications and data communications market is the world's fastest growing market, currently among the three or four largest markets in the world. GN Nettest has in recent years enjoyed dramatic growth in China, now the company's largest market outside North America. One of the reasons for this growth is the ability of GN Nettest - as one of the few existing measuring and test equipment suppliers - to offer solutions for all types of networks.

GN Nettest's tremendous success with SS7 MPA (protocol analysis instrument) sales is the reason it is now also considered to be a possible supplier of network management systems in China. With its SS7-based QUEST7 management system, a sales success the world over, GN Nettest has the answer to the increasing demand from Chinese operators for such management systems.

On the Chinese fiber optics market, GN Nettest is currently the leading supplier of measuring and test equipment used in the production of optical fibers and cables and in the installation and operation of optical networks. GN Nettest intends to maintain its position through a continued expansion.

Data communications, with the Internet and IP telephony as driving forces, is a new technology currently being introduced in China. GN Nettest is among the first to supply products to this market, and one result has been the first contract for the sale of 30 data analyzers (WinPharaoh) to China Mobile.

GN Great Nordic's decision to acquire EAC's holding was a reflection of EAC's intention to focus on fewer business areas and of GN Great Nordic's desire to have the option of accelerating the sale and distribution of GN Nettest and GN Netcom products on the Chinese market.

The two parties agreed not to disclose the financial aspects of the transaction. The acquisition will have no effect on GN Great Nordic projections for 1999, but will improve Group sales and earnings starting in the year 2000, when EAC-GN Communication Equipment (Denmark) A/S expects revenues from the Chinese market to total just under DKK 100 million, primarily from the sale of GN Nettest products.

For further information, please contact:

Jørn Kildegaard
Executive Vice President

GN Great Nordic
Tel.: (+45) 7211-1888 Jens Ole Legart
Corporate Law & Communications Officer

GN Great Nordic
Tel.: (+45) 7211-1880 or
Mobile: (+45) 4050-1419

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