Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has signed a multi-million dollar, royalty-bearing license agreement with Hitachi, Ltd. (NYSE: HIT) of Japan. Under terms of the agreement, Qualcomm granted Hitachi a license to manufacture and sell subscriber products for wireless applications, including cellular, Personal Communications Services (PCS) and wireless local loop, based on its Code Division Multiple Access (CDMA) IS-95 standard.
"With Hitachi's resources and aggressive plans to enter the cdmaOne market, we expect Hitachi to be an integral partner in meeting customer demand," said Steve Altman, senior vice president and general manager of Qualcomm's Technology Transfer Division. "Hitachi's commitment reflects the growing acceptance of our CDMA technology and products worldwide."
CDMA is the digital technology of choice for digital cellular and PCS in the United States. CDMA offers better voice quality with longer talk and standby times and greater wireless access to millions of subscribers.
"Hitachi is ready to apply its extensive research on CDMA to the production of high-quality handsets," said Kyohei Kasaba, board director and group executive of Hitachi's Consumer Products and Information Media Systems Group. "As Qualcomm and Hitachi have reached this CDMA license agreement, we expect to start production and marketing for the Japanese market by the end of 1998 and later for the overseas market."
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1996 (ending March 31, 1997) consolidated sales of $68.7 billion. The Company manufactures and markets a wide range of products, including computers, semiconductors, consumer products, and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's web site at http://www.hitachi.co.jp.
Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communication 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 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 users worldwide. For more information, please visit http://www.qualcomm.com.
Except for historical information contained herein, this news release contains forward looking statements that are subject to risks and uncertainties, including timely product development, 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 29, 1996 and most recent Form 10-Qs.
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