TCL AND ALCATEL JOIN FORCES.

Reports on a handset joint venture formed by China-based TCL Corp. and France's Alcatel in April 2004. Alcatel's placement of its mobile phone production business with TCL; Alcatel's efforts to reduce its exposure to the mobile phone business, where it has been losing money and market share to Asian competitors; Right of TCL to buy Alcatel's stake; Deal's opening of the way for Alcatel's eventual withdrawal from the handset business; Alcatel's focus on building telecommunications equipment for carriers and commercial businesses.