As part of Scientific- Atlanta's expanding commitment to the Asia Pacific region, the company has completed the acquisition of all outstanding interests in the Scientific- Atlanta Shanghai Limited joint venture from the other shareholders. Going forward, Scientific-Atlanta (Shanghai) Company Ltd. will function as a wholly owned subsidiary of Scientific-Atlanta China, Inc. The company will continue to use the extensive marketplace knowledge acquired during the 12 years of the joint venture's operation as it focuses on research and development of digital technology for the burgeoning China market and extending that technology for applications all across Asia.

"This acquisition underscores the importance of the market in China and our belief that a strong local R&D presence will enable us to design, develop and deliver products with focused, market-driven features," said Raghu Puri, the newly designated general manager of Scientific-Atlanta (Shanghai) Company Ltd. who is relocating from Atlanta to Shanghai.

Through the acquisition of these interests and the expanded R&D role of the now wholly foreign owned enterprise (WFOE), technology developed by Scientific-Atlanta will continue to expand its leadership position to meet the growing demand for digital technology in China. In addition to new products and systems that will be developed in Shanghai, service providers in China can benefit from a wide range of imported Scientific-Atlanta-developed technology - next generation headend products and systems including advanced encoding technology, digital content management, advanced transport and access network platforms, and leveraging Scientific-Atlanta's growing presence in IPTV systems.

According to Bill Katherman, vice president and managing director, Asia Pacific region for Scientific-Atlanta, "Current China sales channels and manufacturing capabilities will remain intact following the conversion to a wholly foreign owned enterprise. Going forward, we are excited about the impact this acquisition has for empowering our in-region initiatives as we explore the opportunities for serving China and the rest of the Asia Pacific region." Scientific-Atlanta will continue normal business operations under Katherman's direction in locations across the Asia-Pacific region, including Beijing, Hong Kong and Shanghai.