Source: China business, Page 1

Date: Monday, October 30, 95

From: DailyNews@AsiaInfo.com (AsiaInfo Daily News Service)

BEIJING, Oct. 30, Asiainfo Services, Inc. -- Japan's Sony Corporation, Ltd. has set up a second joint venture in China. The new Beijing Souhong Electronics Co., Ltd. marks Sony's advance into China's telecommunications equipment market. The company, launched over the weekend with a total investment of $39.19 million, will develop, design, reduce and supply telecommunication products, such as cordless and cellular phones.

Sony holds 74.5 per cent of the stake in the company, with the remaining shares being held by three Beijing-based companies--Beijing College of Posts and Telecommunications Science and Technical Corp., Beijing Jingzhi Electronics Information Industry Ltd. and the Beijing Tianzhu Airport Industry Development Company. Operations will begin in the spring of 1997 and the annual production capacity is expected to reach 1 million units by the end of that year. At the initial stage of operations, the products will be mainly for the supply of foreign markets, especially the American market, said Tomoaki Shirta, general manager of the new company.