Thomson, provider of solutions for media and entertainment industries, and TCL International Holdings Limited, the multimedia consumer electronic products manufacturer in China, announced today an important step forward in the process to create TCL-Thomson Electronics.

The two parties have signed the Combination and Shareholders' agreements, in presence of the President of the PRC during his State visit in France and the French prime minister. These agreements provide the basis for the formation of TCL-Thomson Electronics, a new worldwide leader in the development, manufacturing and distribution of television sets and related products and services, consistent with the provisions of the Memorandum of Understanding (MOU) signed last November between the two companies to join their respective strengths in the TV industry.

Since the signature of the MOU, TCL and Thomson have deepened their cooperation leading to the signature of the Combination Agreement, which sets forth the terms and conditions pursuant which TCL and Thomson will combine their respective TV businesses and assets in TCL-Thomson Electronics. TCL and Thomson intend to complete other documents during the course of February, in order to be in line with the planned target to sign all other necessary definitive agreements before end Q1.