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Qualcomm and Hitachi Ltd. Sign CDMA Wireless Infrastructure License Agreement

– December 05, 1996 – Qualcomm Incorporated (NASDAQ: QCOM) and Hitachi Ltd. of Japan today announced that they have signed a multi-million dollar, royalty-bearing license agreement for wireless infrastructure equipment based on Qualcomm's Code Division Multiple Access (CDMA) IS-95technology. Under the terms of the agreement, Hitachi is granted rights to manufacture and sell CDMA wireless infrastructure worldwide.

In a signing ceremony today at the CDMA Development Group's (CDG) North American Regional Congress in Los Angeles, Qualcomm Chairman and CEO Dr. Irwin M. Jacobs said, "We believe that this agreement with Hitachi, a major global telecommunications manufacturer, will further accelerate worldwide deployments. This move signals a strong commitment by Hitachi to fully support the successful introduction of CDMA in Japan and around the world."

Some major Japanese carriers have recently announced their move towards CDMA for next generation wireless networks in Japan. CDMA offers a cost effective long-term solution to Japan's skyrocketing demand for cellular and PCS wireless products and services. Some of the benefits of CDMA include increased capacity, near wireline voice quality and enhanced privacy features.

"After careful study of Qualcomm's CDMA technology, Hitachi has decided to enter the CDMA market with the combination of Qualcomm's technology and Hitachi's broad expertise in telecommunications manufacturing, such as switching and transmission equipment," said Takao Kato, director of Hitachi, Ltd. and general manager of the Telecommunications Division. "By working with Qualcomm, we will accelerate the product development for CDMA infrastructure equipment. This is only the start of what we hope will be a long and mutually prosperous relationship with Qualcomm."

Hitachi, Ltd., headquartered in Tokyo, Japan, is the world's leading global electronics company with fiscal 1995 consolidated sales (ending March 31, 1996) of $76.6 billion (at an exchange rate of 106 yen to the dollar). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based,mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar? low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro? electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development and commercial implementation of the Company's CDMA technology, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, timing and receipt of license fees and royalties, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1997 and most recent Form 10-Qs.

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Topics: Corporate
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