SAN DIEGO - September 23, 1998 - Qualcomm Incorporated (NASDAQ: QCOM) todayannounced that it has completed the spin-off and distribution to itsstockholders of shares of Leap Wireless International, Inc. (NASDAQ: LWIN). As part of the distribution, effective immediately after the close ofmarket trading on September 23, 1998, record holders of Qualcomm commonstock on September 11, 1998 will receive a dividend of one (1) share ofcommon stock of Leap Wireless for every four (4) shares of common stock ofQualcomm held by them as of that date. Regular public trading of LeapWireless shares under the ticker symbol "LWIN" will begin as of September24, 1998, at which time Qualcomm common stock will trade ex-dividend.
The strategy of Leap Wireless will be to invest in wireless consortia withpartners that offer financial resources, spectrum or familiarity with thelocal market to facilitate deployment. Leap Wireless currently owns,manages, supports and operates joint venture and equity interests in PegasoTelecomunicaciones, S.A. de C.V. (Mexico), Metrosyvaz Limited (Russia) andOrrengrove Investments Limited (Russia), ChileSat Telefonia Personal, S.A.(Chile), Chase Telecommunications, Inc. (United States), OzPhone Pty. Ltd.(Australia), and certain other development-stage businesses.
"In emerging markets, the need for rapidly expanding telecommunicationsinfrastructure is not a luxury item, but a fundamental need, and wirelessis the fastest and most cost-effective way to meet the demand," said HarveyP. White, chairman and CEO of Leap Wireless. "We have chosen to focus onCDMA because we believe that it is the best technology to provide thecapacity and quality to meet customer demand. In addition, by using CDMA,we will not have to sacrifice quality for mobility. We will be able toprovide high quality voice and data services that just happen to be mobile."
Mr. White was a co-founder of Qualcomm who served as its president untiljust prior to the distribution.
Headquartered in San Diego, Qualcomm develops, manufactures, markets,licenses and operates advanced communications systems and products based onits proprietary digital wireless technologies. The Company's primaryproduct areas are the OmniTRACS® system (a geostationery satellite-based,mobile communications system providing two-way data and position reportingservices), CDMA wireless communications systems and products and, inconjunction with others, the development of the Globalstar™ low-earth orbit(LEO) satellite communications system. Other Company products includeEudora Pro® electronic mail software, ASIC products, and communicationsequipment and systems for government and commercial customers worldwide.For more information on Qualcomm products and technologies, please visitthe Company's web site athttp://www.qualcomm.com.
Headquartered in San Diego, Leap Wireless is a wireless communicationscarrier that deploys CDMA networks in domestic and international marketswith strong growth potential. In conjunction with its strategic partners,Leap Wireless is building or anticipates building a combination of fixedand mobile wireless solutions in Mexico, Chile, Australia, Russia and theUnited States. The world is going wireless, and Leap believes CDMA is thetechnology of choice to increase the teledensity that is critical toeconomic growth. For each of its ventures, Leap Wireless expects to beactively involved in the management of the networks, combining itsexperience in international markets with its wireless technical expertisein CDMA. Leap Wireless is dedicated to bringing the economic benefits of areliable, cost-effective and high-quality telecommunications infrastructureto emerging markets. For more information about Leap Wireless, please visitthe company's web site beginning September 24, 1998 athttp://www.leapwireless.com.
Except for the historical information contained herein, this news releasecontains forward-looking statements that are subject to risks anduncertainties, including risks associated with the lack of Leap Wirelessoperating history, uncertainty of future profitability of Leap Wireless,international risks and change in economic conditions of the variousmarkets Qualcomm serves and Leap Wireless may serve. These and other risksare detailed from time to time in Qualcomm's SEC reports, including the report on Form10-K for the year ended September 28, 1997 and most recent Form 1O-Q, aswell as in the Information Statement on Form 10, as amended, filed by LeapWireless in connection with the distribution.
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Qualcomm, OmniTRACS, Eudora and Eudora Pro are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.
September 23, 1998September 23, 1998Qualcomm Completes Spin-off of Leap Wireless InternationalQualcomm Completes Spin-off of Leap Wireless International