- Builds on LG-Nortel’s World’s First WinCE Videophone for Global Markets

SEOUL, Korea – Microsoft and LG-Nortel, a joint venture of LG Electronics and Nortel* [NYSE/TSX: NT], today announced the signing of a Memorandum of Understanding (MoU) for broad range collaboration in Voice over IP (VoIP), including WinCE-based IP terminals and the new WinCE 6 videophone. WinCE 6 is Microsoft’s new integrated embedded development environment for the next generation of smart devices.

Under the MoU, the scope of the strategic alliance will include joint R&D, cooperative marketing to customers and channels worldwide, and a licensing agreement for WinCE 6. The MoU builds on the strength of an existing relationship between the two companies, marked by LG-Nortel’s successful development of a WinCE 5-based multimedia Session Initiation Protocol (SIP) phone, the LIP-6824CD, and the world’s first WinCE 6 videophone for global markets.

“This partnership provides a perfect fit for our strategy of developing innovative IP solutions for leading telcos looking to expand into IP Centrex services and such multimedia services as video calls, MMS/EMS and other value added services,” said Jae Ryung Lee, CEO, LG-Nortel. “In the future, we plan to make a wide range of WinCE-based products available to Microsoft channel partners around the world.”

Terminals based on Microsoft’s new WinCE 6 platform provide more powerful multimedia processing and will serve as a platform for application-oriented enterprise and residential solutions based on innovative embedded devices. “Through this partnership, we anticipate substantial sales of embedded solutions in the area of VoIP, as well as the establishment of a leading position in the IP phone and IP videophone market through WinCE 6,” said Lee.

Microsoft and LG-Nortel expect to conclude a definitive agreement within the next few months. At that time, new WinCE 6-based IP phone designs and features will be announced.