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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (1767)	6/23/1998 5:38:00 PM
From: Erik H. East	Respond to of 5390

Nortel awarded patent on DEDI device...Dense Earnings Division Integrator!

To: Alex who wrote (1767)	6/24/1998 12:57:00 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 5390

More good news - future products! WRAP: Psion, Nokia, Ericsson Aim For Industry Standard By MARTIN BOER Dow Jones Newswires LONDON -- Palmtop computer group Psion PLC (U.PON) teamed up with communications giants Nokia Oy AB (NOKA) and Telefon AB Ericsson (ERICY) Wednesday in a joint venture aimed at creating an industry standard for devices that integrate mobile phones and hand-held computers. The GBP100 million company, to be called Symbian, is aiming for a leadership role in the rapidly expanding mobile technologies sector - incorporating mobile phones and pocket computers - which Psion estimates will have over 600 million users by 2002, compared with 200 million currently. "The battleground is going to be what is the software platform for these appliances," said Psion Chief Executive David Potter. "This is a watershed deal for the communications industry and places Psion at the heart of the rapidly expanding mobile market," he added. Psion's former software unit will form the core of Symbian, giving Psion an initial 40% stake. Nokia and Ericsson will pay Psion a combined GBP57.5 million in cash and software in exchange for 30% each. Psion said the transactions will generate GBP40 million, which it will use to expand its other businesses. Motorola also signed a memorandum of understanding Wednesday to join the venture as an equal partner. After making an equivalent investment Motorola, Nokia and Ericsson will each hold 23% stakes leaving Psion 31% of the company. "We're shortly to become a joint-venture partner," Motorola Chairman David M. Brown told a news conference Wednesday. Psion shares soared on the news. At 1510 GMT, shares in Psion were up 142 pence, or 50%, at 423.5 pence, on provisional volume of 3.96 million shares. "It's certainly viewed as a different animal now. Telephones seem to be the market to be in," said a head dealer at a London brokerage. "It's been rising in trading all day, with investors very hopeful about the company." Psion Financial Director Marina Wyatt said the venture does much more than just generate a GBP40 million profit. The cost of supporting the former Psion software unit will now be divided equally between the joint venture partners. Psion will also stand to gain if Symbian succeeds in developing a global industry standard. Analysts who monitor Psion closely were encouraged by news of the venture. "It's potentially really good news. It gives Psion access to a huge potential market," said a technology analyst at a London brokerage. Another analyst at ABN Amro confirmed the European bank is reiterating its "buy" recommendation on the stock to clients. Symbian is currently cash-rich, but Wyatt said the joint partners will consider raising capital through an initial public offering or on the bond market. "It is a possibility that it will float, but by no means certain," she said. "It would most likely be listed on Nasdaq." -By Martin Boer; 44-171-832-9114; mboer@ap.org