GN, parent company of GN Mobile and GN Netcom, announced they are combining their two headset businesses to create the world’s largest manufacturer of headsets for hands-free communication such as the popular GN 9350, the GN 9330, and the GN 9330 USB. The new business will employ about 1,800 people and expects revenues for 2006 of approx. DKK 2.7bn (US$450 million) in the former GN Mobile and at least DKK 1.8bn (US$300 million) in the former GN Netcom.

“Some years ago, we set out our vision for the future; one in which everyone will be using wireless headsets whether they’re in the office, at home or on the move,” said Hans Henrik Lund, president of the new headset business. “Today’s announcement is part of the changes we are implementing in order to make our vision a reality.”

As the leading innovators in the global headset industry, GN Netcom and GN Mobile have developed and launched some of the most successful products in the history of the wireless headset market, including the widely popular Jabra mobile headsets and GN Netcom office headset solutions. Both brands are distributed through 90,000 sales channels worldwide, including carriers and system integrators as well as leading consumer electronics chains and mobile phone specialists. Joining forces will enable the new company to sustain high growth and innovation leadership.

Consumer electronics veteran David Wood will spearhead North American operations as senior vice president and general manager of the newly combined entity. In this capacity, he will leverage his 20-year consumer electronics career and extensive experience in building awarding-winning retail brands, including Bose® sound systems and stereo products.

“I am thrilled to be a part of GN during this extremely exciting time in the company’s evolution,” said Wood. “We will work together with our global team over the coming months to unite operations and reinforce our industry leadership while continuing the company’s proven track record of design innovation and product excellence.”

In 2005, GN Netcom and GN Mobile attained the No. 1 market position with a global market share of 35 percent. The company manufactured 25 million headsets, amplifiers and other accessories, representing a 50 percent increase over 2004 manufacturing totals. The products were sold under GN’s Jabra and GN Netcom brands, as well as to global mobile phone manufacturers under OEM contracts.

To date, GN Netcom and GN Mobile have successfully operated separate sales, marketing and development efforts while sharing the same production and other supply chain functions as well as corporate functions, including human resources, finance and information technology. GN Netcom has focused on selling solutions to professional users in offices and contact centers while GN Mobile has concentrated on the mobile consumer market.

“Combining our two divisions will help us become an even more effective organization. We will take advantage of our strong market presence, brands and track record in innovation,” said Lund. “It will also help us meet the needs of our distributors and retailers that are increasingly demanding single-point access to our headsets and other products.”

GN launched the world’s first Bluetooth® headset. Through a dedicated effort, GN has taken only a few short years to become the leading manufacturer of headsets.

About GN
GN, parent company of GN Mobile and GN Netcom, today announced they are combining their two headset businesses to create the world’s largest manufacturer of headsets for hands-free communication. The new business will employ about 1,800 people and expects revenues for 2006 of approx. DKK 2.7bn (US$450 million) in the former GN Mobile and at least DKK 1.8bn (US$300 million) in the former GN Netcom.

For more information, see www.gn.com. For product information, see www.gnnetcom.com and www.jabra.com