SAN DIEGO -- March 8, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Ryder System, Inc. (NYSE: R), a leader in logistics and transportation solutions worldwide, today announced the formation of a strategic relationship. Ryder has selected Qualcomm as its primary and preferred wireless mobile communications and on-board computer provider and has agreed to purchase OmniTRACS, systems for Ryder and its clients' vehicles.
Ryder owns and maintains over 100,000 trucks and 40,000 trailers domestically and operates over 10,000 vehicles in its Dedicated Contract Carriage business. In its Dedicated Contract Carriage solution, Ryder designs a client's transportation process utilizing the latest technology and then absorbs the management and operation of the client's fleet.
Qualcomm's OmniTRACS System is an interactive, fully integrated information management system that includes two-way mobile communications, satellite tracking and fleet management software for near real-time messaging and position reporting between fleets and their operations centers. Messages are sent via satellite, through Qualcomm's Network Management Center to dispatch centers throughout the United States. The OmniTRACS System operates 24 hours a day, seven days a week.
Qualcomm and Ryder plan to work together to develop solutions for Ryder's fleet management, transportation and supply chain needs to enhance performance and cost efficiencies. Additionally, OmniTRACS will enhance back-office capabilities through its mobile communications tools by capturing and transmitting automated fuel tax mileage updates, vehicle tracking, and load and maintenance data.
"Ryder needed more than just an on-board device to help enable its e-commerce efforts to link and automate important business functions," said Mike Shelton, Ryder's senior vice president of e-commerce. "We realized early on that a strategic alliance was necessary to drive fundamental changes not only in our business, but changes of the industry as well. We have already integrated our systems to connect Qualcomm-equipped vehicles directly to the Ryder Customer Response Center to communicate driver breakdowns on a timely basis, thus improving technician response time and driver safety. Qualcomm continues to provide Ryder with quality wireless communications products and has the ability and commitment to develop new and innovative products that are designed to fit Ryder's future needs."
"Our globally competitive logistics clients demand full supply chain visibility," said Gregory T. Swienton, Ryder's president and chief operating officer. "We are confident of Qualcomm's ability to help Ryder achieve this visibility and provide cost-effective solutions to improve efficiency and productivity for our clients."
"Qualcomm's OmniTRACS system was the first to market over 12 years ago," stated Chris Wolfe, senior vice president and general manager of domestic operations for Qualcomm Wireless Business Solutions. "Since then, fleet management solutions have helped shaped the way transportation companies do business. We look forward to continue working with Ryder to implement benefits of the OmniTRACS System within their business."
Ryder (www.ryder.com) provides a continuum of world-class logistics and transportation solutions worldwide. Ryder's product offerings range from full-service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management. Additionally, Ryder offers overarching supply chain consulting, lead logistics management services and e-commerce development, which support clients' entire supply chains, from inbound raw materials through distribution of finished goods. Ryder currently serves client needs throughout North America, in Latin America and Europe.
Fortune magazine ranked Ryder as the most admired company in the highway transportation industry in 1997 and 1998 and second-most admired in 1999. In 2000, Ryder received a higher overall rating than any of its competitors inFortune. For the second consecutive year,Inbound Logistics magazine recognized Ryder in 1999 as the top third-party logistics provider.
Qualcomm has helped the transportation industry become more efficient since 1988 when the OmniTRACS System began to provide transportation companies with an innovative and effective way of managing logistics. These fleet management solutions continue to set the standard by offering innovative products and services that meet the demands of a constantly changing marketplace. With the introduction of OmniExpress™, a CDMA-based digital wireless PCS communications and tracking system, along with trailer tracking and other innovative technologies, Qualcomm continues to expand into various markets including regional and metropolitan-based fleets. With a Network Management Center that processes nearly five million transactions each day and 325,000 mobile systems used by businesses in more than 36 countries on four continents, Qualcomm continues to lead the industry in providing wireless data solutions.
Qualcomm Incorporated (www.qualcomm.com) 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 business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM.
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, 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 26, 1999, and most recent Form 10-Q.