January 27, 2004

By: Yen Hung
Website: http://www.1st-in-cell-phones.com

Toshiba establishes presence in U.S. wireless market

Toshiba Corporation today announced that it would increase its minority interest in U.S. based Audiovox Communications Corporation (ACC), the distributor of wireless products for Audiovox Corporation. Toshiba will raise its stake in ACC to 25%, a move that will strengthen ACC in the fast growing wireless communications market and also allow Toshiba to establish its presence in the North American CDMA market.

Toshiba and Audiovox Corporation, ACC's parent, have partnered in the cellular business since 1984, when they were among the first companies to enter the industry in the United States. Audiovox Corporation launched ACC in 1993 to reinforce marketing of wireless products and in 1999 Toshiba took a 5% interest in the company. Today's announcement reflects the continuing strength of the long-standing Toshiba-Audiovox relationship and the determination of the partners to continue as a major presence in the fast growing CDMA market.

Today's agreement calls on Toshiba to raise its stake in ACC to 25% and gives ACC exclusive rights to sell Toshiba Mobile Communications Company products to carrier channels in North and South America. As ACC's preferred supplier, Toshiba will provide ACC with OEM CDMA terminals and Toshiba-brand terminals, which ACC will supply to carriers in North America. Toshiba and ACC will also take further steps to reinforce business development and strategy: Toshiba will appoint a director to ACC's board and work more closely with ACC in product planning and marketing.

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Author Notes:

Yen Hung contributes and publishes news editorial to http://www.1st-in-cell-phones.com.  A cellular phone industry resource featuring articles, comparisons and reviews of cellular phone and service plans.