“Therefore, we plan to ramp down our manufacturing facility in Cluj, Romania by the end of 2011. We are aligning our manufacturing in Europe with consumer behavior in Europe. Specifically, smartphones sales in Europe have increased while feature phones sales in Europe have decreased, and the majority of our work in Cluj has been around feature phones manufacturing. This is painful but necessary, and we recognize this has a significant impact on our employees, their families and the local community. We will do our best to support our colleagues.
We also plan to shift gradually the focus in the Salo, Komarom and Reynosa factories from device assembly to customer and market-specific software and sales package customization. These factories are expected to continue to play a key role in serving smartphone customers in Europe, Eurasia and the Americas. We expect there will be impacts to personnel in 2012. The extent of this impact is expected to be known in the first quarter of 2012 after consultations with employee representatives. We expect no impact to personnel in 2011.”