SAN DIEGO -- March 17, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that it has reached agreement to resolve the class action litigation filed by former employees of the Company arising out of the sale of assets of Qualcomm's infrastructure division to Ericsson. Under the terms of the settlement, $8.9 million (minus attorneys' fees and costs) will be distributed to over 1,000 former employees covered by the lawsuit. Qualcomm, while agreeing to resolve the lawsuit, paid nothing toward the settlement, with all payments to be made by third parties. The affected employees have until April 17, 2000 to opt out of the settlement, and Qualcomm has the option to cancel the settlement if more than a designated number of affected employees opt out. A final settlement approval hearing has been scheduled for April 28, 2000.
"Qualcomm believes it provided a fair and generous compensation plan for those employees who joined Ericsson," said Dr. Irwin Mark Jacobs, chairman and CEO, Qualcomm. "Nonetheless, we are happy that employees received this additional compensation, allowing us to put the matter behind us and concentrate on more productive activities."
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.