SAN DIEGO -- May 10, 1999 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that it was advised on Friday, May 7, 1999 that the United States Department of Justice had concluded its anti-trust review of the pending acquisition by Ericsson of Qualcomm's terrestrial Code Division Multiple Access (CDMA) wireless infrastructure business and the companion settlement agreements of the pending patent infringement litigation between the two companies. As a result, Qualcomm expects that the transaction with Ericsson will close on or about May 24, 1999.
On May 6, 1999, a class action lawsuit was filed against Qualcomm by a single employee, purportedly on behalf of those employees who are transitioning to Ericsson as part of the acquisition. However, 94 percent or more of the 1,053 transitioning employees who have unvested stock options, including all of the senior management of the division, have chosen not to join the lawsuit. They will participate in the Retention Bonus Plan offered by Qualcomm and Ericsson, which provides several benefits including cash compensation based upon a portion of the value of their unvested options.
"We are pleased with the overwhelming acceptance of the Retention Bonus Plan and the many positive comments regarding fair treatment that we have received from all of our employees. We thank each of the transitioning employees for their many significant contributions to Qualcomm, and wish them great success while participating in the worldwide growth of CDMA with Ericsson," said Dr. Irwin M. Jacobs, Chairman and CEO of Qualcomm.
Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Headquartered in San Diego, Calif., Qualcomm is a FORTUNE 500® company with fiscal 1998 revenues in excess of U.S. $3 billion. For more information, 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. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to the risk that the closing conditions to agreements signed with Ericsson will not be satisfied, the risk that the rate of growth in the CDMA subscriber population will decrease, risks associated with the scale-up and operations of CDMA systems, risks associated with the ability to improve operational efficiency and profitability, risks associated with developments in current or future litigation, risks associated with timing and receipt of license fees and royalties, risks associated with vendor financing and risks associated with changes 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.
Qualcomm, OmniTRACS and Eudora are registered trademarks of Qualcomm Incorporated. MSM and Thin Phone are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective manufacturers.