Santa Barbara, CA (May 11, 2004) - 724 Solutions (NASDAQ: SVNX; TSX: SVN), a leading provider of next-generation IP-based network and data services, today announced an agreement with Nokia (NYSE: NOK) to acquire the Nokia Multimedia Application Gateway (AGW) product and a separate OEM agreement under which Nokia will continue to offer the product to its existing and future customers.
Effective immediately, 724 Solutions will transition the development and support of the product to its Toronto development center. The Multimedia Application Gateway joins 724 Solutions' X-treme Mobility Suite and, in addition to distribution through Nokia, will be available to 724 Solutions' mobile operator customers through direct and other partner channels.
The Multimedia Application Gateway is a leading multimedia service platform that extends the reach of MMS through five services, including legacy support for non-compatible MMS terminals, providing connectivity between e-mail and MMS users,
receiving voice messages on MMS terminals, composing multimedia messages and storing and forwarding MMS messages from a personal album application. The Nokia Multimedia Application Gateway is part of Nokia's MMS solution, which is deployed in close to 70 mobile networks globally. The majority of Nokia's MMS deployments include the AGW product.
"Our focus is to deliver platforms and applications to mobile network operators that give them the capabilities to grow their mobile data revenues," said John Sims, CEO of 724 Solutions. "The AGW is positioned within the key growth sector of MMS messaging and as such we believe that it will provide excellent growth opportunities for our customers and we are very pleased to be working with Nokia in this important area," said Sims.
"Our goal is to make sure we continue to offer the market's most competitive MMS infrastructure solution to our present and future mobile operator customers. Through the expertise 724 Solutions has in the service platform business, we will continue to offer a product that represents the state-of-the-art technology and know-how on the market," said Bo Lönnqvist, General Manager, Messaging Product Line, Networks, Nokia. "Divesting Nokia Multimedia Application Gateway, an element of our MMS solution, to 724 Solutions will allow us to further develop and expand messaging solutions that fall into Nokia's core competence, thereby giving more added value to our operator customers also in the long term," said Lönnqvist.
This transaction is subject to customary closing conditions and it is expected that closing will occur within three weeks.
About 724 Solutions
724 Solutions (NASDAQ: SVNX; TSX: SVN) delivers reliable, scalable technology and solutions that allow mobile network operators to rapidly deploy flexible and open next generation IP-based network and data services. Additionally, in conjunction with mobile operator partners, the company provides a series of actionable alerting solutions to enterprises to assist them in lowering operating costs and improving customer relationship management. 724 Solutions is a global company with development operations in North America, Switzerland and Germany with headquarters in Toronto, Canada. For more information, visit www.724.com.
About Nokia
Nokia is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to enhancing people's lives and productivity by providing easy-to-use and secure products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses. Nokia is a broadly held company with listings on five major exchanges. www.nokia.com
S&S Public Relations, Inc
Heather Kelly
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e-mail: heather@sspr.com
724 Solutions Inc
Kelly Reese Lazarus
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e-mail: klazarus@724.com
Nokia Americas
Communications
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e-mail: Communication.corp@nokia.com
Nokia Networks
Communications
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e-mail: networks.communications@nokia.com