SAN DIEGO -- March 13, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that it has entered into an agreement with Norsat International Inc. (Nasdaq: NSATF; TSE:NII) to incorporate Qualcomm's Globalstar Packet Data Modem in the digital data terminal Norsat is developing for narrowband applications.
Under the agreement, Qualcomm will provide its Globalstar Packet Data Modem (GSP1620) for integration into Norsat's narrowband terminals. Using the Qualcomm Globalstar Packet Data Modem as a core communications component, Norsat will design and integrate the necessary interface circuits and external housings as required for each application.
"Other wireless technologies hold certain positive attributes for data applications, however they tend to be expensive and regional in scope," said Jerry Beckwith, president of Qualcomm's Wireless Systems. "Qualcomm's Globalstar Packet Data Modem will address global opportunities where no current data solution exists."
"With the performance, reliability and security of Qualcomm's Code Division Multiple Access (CDMA) technology and the cost effectiveness of narrowband access, we expect our new terminals to offer highly competitive solutions when they become available in the second half of this year," said Robert H. Bucher, Norsat's president and CEO. "Together, the Globalstar USA and Qualcomm agreements represent an opportunity for Norsat to add narrowband offerings, with the potential for recurring revenues from the sale of airtime and related services, to its existing broadband and VSAT satellite access businesses."
In December 1999, Norsat announced plans to distribute Globalstar USA satellite-based telephony services, as well as a new narrowband data service based on a proprietary terminal that will enable remote locations to send operations and transaction data for financial, monitoring, diagnostic, and other purposes, and to receive information in response. The potential customer base includes a broad range of industries with widely scattered operating locations. Norsat initially expects to target natural resource, retail, transportation and utility companies.
Norsat International Inc. designs, engineers and distributes premium products for use in the satellite wireless communications industry. It has four principal operating units. Norsat Satellite Products is a leading supplier of satellite signal receivers, transmitters, and other ground station equipment. Norsat Broadband Networks supplies systems to the satellite broadband I/P market. Norsat Narrowband Networks specializes in voice and data products and services for the Globalstar satellite constellation. The Company's Norsat America Inc. subsidiary operates a network of 14 branch offices across the U.S. and is a distributor of DIRECTV® satellite service to the direct-to-home (DTH) market and a DIRECTV® Master System Operator (MSO) for the multiple dwelling unit (MDU) market. Norsat America also distributes DirecPC.
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.