Qualcomm was informed today that employeeRichard Bliss has sued Qualcomm, seeking monetary compensation arising outof the charges of espionage made against him while working for Qualcomm inRussia in 1997.
Qualcomm cannot comment on the specifics of the claims because we do notwant to affect the charges still pending against Bliss in Russia. However,the Company believes that his claims are without merit and is confidentthat once the facts are known, this lawsuit will be dismissed. Bliss' lawyer had previously been in contact with Qualcomm and demanded payment ofnearly $1 million from Qualcomm, which the Company rejected.
Qualcomm will continue to support Bliss in his fight for repudiation of theunfounded charges of espionage by the Russian authorities, having recentlylearned that positive resolution of the matter is imminent. Bliss, whoremains employed full-time by Qualcomm, has received extensive support fromthe Company during his time in Russia and since his return, includingcounseling; extensive paid time off; career planning services; fully paidcollege tuition and expenses; placement in a new job of his choosing; aswell as any legal or other support required to obtain his release fromRussia. Qualcomm was not aware of any of Bliss' new demands untilcontacted by Bliss' lawyer last week.
Qualcomm intends to vigorously defend against what it views as a meritlesslawsuit and opportunistic demand for money.
Qualcomm Incorporated (NASDAQ: QCOM) is a leader in developing anddelivering innovative digital wireless communications products andservices based on the Company's CDMA digital technology. TheCompany's major business areas include CDMA phones; Application Specific Integrated Circuits (ASICs); wirelessinfrastructure; technology licensing; and satellite-based systemsincluding OmniTRACS® and portions of the Globalstar™ system. Qualcomm is headquartered in San Diego, Calif. For more information,please visit the Company's web site at http://www.qualcomm.com>.
Qualcomm and OmniTRACS are registered trademarks of QualcommIncorporated. Globalstar is a trademark of Loral Qualcomm SatelliteServices, Incorporated.
November 18, 1998November 18, 1998