SAN DIEGO -- March 23, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA), today announced that it and Hitachi have entered into an amendment to Hitachi's existing CDMA licensing agreement. Prior to the amendment, Hitachi's CDMA license covered only cdmaOne™ applications. With the amendment, Hitachi's CDMA agreement has now been expanded to grant Hitachi a license under Qualcomm's essential CDMA patent portfolio to develop, manufacture and sell infrastructure and subscriber equipment for all modes of the third-generation CDMA standard, including Multi-Carrier (MC), formerly cdma2000, and Direct Spread (DS), formerly W-CDMA. Under the terms of the amendment, Hitachi has agreed to pay Qualcomm a multi-million dollar up-front license fee and ongoing royalties as Hitachi begins selling third-generation CDMA equipment. The royalties payable by Hitachi are the same irrespective of the licensed CDMA standard.
"With more than 75 major telecommunications manufacturers having been licensed under Qualcomm's CDMA patents, Qualcomm's patent portfolio has been and continues to be recognized as essential for all proposed CDMA standards, including the MC and DS modes of third-generation CDMA systems," said Steve Altman, president of the Technology Alliance Division for Qualcomm. "By extending its license agreement, Hitachi joins the growing list of manufacturers that have entered into licenses with Qualcomm, allowing them to participate in the rapidly growing CDMA market and supply CDMA equipment for both existing and future generations of CDMA standards, including MC and DS modes."
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; satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. 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 Stock Market® 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 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.