Flextronics and HP Enhance Mobile Phone Image Quality

November 15, 2006 | Mark Goldstein | Camera Phones | Comment |

HPHP Press Release

SINGAPORE – Nov. 14, 2006 - Flextronics Components Group, a division of Flextronics (Nasdaq: FLEX), and HP (NYSE: HPQ)(Nasdaq: HPQ) today announced a five-year technology collaboration agreement to help mobile camera phone users capture photos with the same high quality they achieve from their digital still cameras. As part of the agreement, HP will provide an exclusive license of its image processing technology to Flextronics for use in camera modules, in return for a royalty. Originally designed for the award-winning HP Photosmart digital cameras,(1) HP’s image processing technology will correct and enhance digital images in Flextronics- designed and manufactured camera modules.

Flextronics’ Components Group, one of the world’s largest camera module designers and manufacturers, will embed the technology into mid- and high-range camera-enabled mobile devices that will produce significantly higher quality photos compared with today’s camera phones and mobile devices.

“We look forward to providing our OEM camera phone customers with an even higher level of image processing technology at an affordable cost and are thrilled to be HP’s camera module partner,” said Mike Burger, president, Flextronics Components Group.

Industry analysts Prismark Partners estimates that 600 million camera-enabled phones will be shipped worldwide in 2006 and expects that number to grow to more than 975 million by 2010.

“Flextronics is the ideal partner to harness the capabilities of HP’s digital imaging technology to open new markets,” said Tara Bunch, vice president, Imaging and Printing Group, HP. “This agreement is a breakthrough for the booming camera phone market because it will transform photos into higher quality images into keepsakes to share and print.”

Joe Beyers, vice president, intellectual property licensing, HP, said: “HP actively seeks to license its broad technology portfolio to industry leaders that provide complementary design, manufacturing and distribution capabilities. By leveraging HP’s vast research and development capabilities, Flextronics will have a significant time-to-market advantage when it becomes the first company to deliver high-quality camera phone modules.”

Mobile device manufacturers should contact Flextronics’ Components Group (www.flextronics.com) for product availability information. The company expects the new camera phones to be available to its customers in 2007.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended July 31, 2006, HP revenue totaled $90.0 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

About Flextronics
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. With fiscal year 2006 revenues from continuing operations of US $15.3 billion, Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on five continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit http://www.flextronics.com.

(1) The Photo Marketing Association awarded two HP Photosmart Digital Cameras with a 2006 DIMA Digital Camera Shoot Out award in the Point and Shoot Category (PMA, February 26, 2006). PC World recently ranked three HP Photosmart Digital Cameras in its list of Top 10 Point and Shoot Cameras (October 13, 2006).