We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company’s results. The Xperia™ X10, our first android-based Communication Entertainment device featuring signature SonyEricsson applications Timescape and Mediascape™, and Vivaz™, a beautifully designed, touch-screen Symbian phone started shipping towards the end of the quarter. Both models have been well received by global customers.” He added, “Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for ourbusiness organization and strategy. We will continue to work through the transformation programme to ensure that we are competitive.