Mobile and Wireless Group (MWG) has been established by the current management team of O2 Asia with investment from London Stock Exchange AIM-listed Expansys, to take on O2's PDA/Smartphone business in Asia and to continue to serve this high-growth sector.

Telefónica O2 Europe, O2 Asia's European parent, decided that its device business in Asia, which is based in Singapore, was a non core asset following a strategic review.  As a result, plans are now being put in place to wind down the business over the coming months.

MWG will take over the majority of O2 Asia's assets and also plans to hire a number of O2's staff in Asia. MWG will also take responsibility for all of O2 Asia's service and warranty obligations. O2 is committed to ensuring that its customers continue to receive an excellent level of service and that all product guarantees and service commitments are fully met.

MWG has inherited an exciting roadmap of new devices running on Microsoft's Windows Mobile operating system which it intends to develop under its own brand. The company plans to announce its 2008 line-up of products in the coming months.