SAN DIEGO -- May 24, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced strong worldwide support from fifteen handset manufacturers, for the Company's third-generation (3G) CDMA 1x Multi-Carrier (1x) MSM5000™ Mobile Station Modem (MSM™) chipset and system software solution. In December 1999, Qualcomm conducted successful over-the-air phone calls using the MSM5000 chipset. Handset manufacturers worldwide have been receiving MSM5000 engineering samples, together with the system software and development platforms, since January 2000. Working closely with Qualcomm, manufacturers and network operators expect deployment of commercial 1x systems using the MSM5000 chipset by the end of the year. Field trials are scheduled to begin in Korea this spring. Sprint PCS and Qualcomm announced plans for U.S. 1x trials in April 2000. The U.S. trials will include testing and verification of 1x voice and 144 kilobits per second (kbps) data capabilities using the MSM5000 solution and the CSM5000™ Cell Site Modem (CSM™) base station chip and system software. Qualcomm developed the MSM5000 and CSM5000 solutions in parallel to ensure 1x interoperability and feature compatibility. Pre-production availability is expected as early as the third calendar quarter of 2000.
Three important milestones have recently been achieved by Qualcomm and the Company's manufacturing and network partners. In March 2000, Qualcomm, Samsung and Sprint PCS announced the first 1x voice call using the MSM5000 solution and Samsung's infrastructure equipment on a Sprint PCS network. In April 2000, Qualcomm and Lucent Technologies demonstrated the first 153 kbps High-Speed Packet Data (HSPD) call using the MSM5000 and CSM5000 chipset solutions. Earlier this month, DDI, a Japanese carrier selected 1x for a license application for its nationwide 3G network in Japan.
The MSM5000 chipset and system software will allow manufacturers to roll out the first 1x handsets that, in addition to offering rich application and feature sets in very small form-factors, also provide significantly extended standby times, as well as much higher voice capacity and data rates. These are key attributes for next-generation handsets and their ability to support new data services in 3G networks.
"Qualcomm's MSM5000 chipset and system software will help manufacturers worldwide achieve an early rollout of 1x products and services," said Don Schrock, president of Qualcomm CDMA Technologies. "Our partnerships with innovative companies in developing and deploying next generation CDMA solutions will allow them to offer and deliver, on-time, the most advanced wireless communications systems in the world."
The MSM5000 solution is pin-compatible with the MSM3000™ chip and its software architecture. Pin, software architecture and radio frequency (RF) front-end compatibility allow handset manufacturers already using the MSM3000 to introduce 3G handsets rapidly by reusing existing, production-proven handset designs and software applications. In delivering the MSM5000 solution, Qualcomm has exceeded the International Telecommunications Union's (ITU) 3G requirements for data rates in full wide area mobility of 144 kilobits per second (kbps) by enabling data rates of up to 153.6 kbps on both the forward and reverse links. The MSM5000 solution gives operators up to twice the overall capacity over IS-95A and IS-95B systems by providing features such as fast 800 Hz forward power control and new modulation and coding schemes. A 50 percent improvement in standby time for 1x MSM5000-based handsets compared to existing IS-95A/B-compliant handsets will also be achieved through the use of the new Quick Paging Channel and an improved searcher.
The MSM5000 chipset and system software is also fully backward compatible with existing IS-95A and IS-95B networks, providing a seamless migration path to 3G while maintaining existing wide-area coverage for all subscribers. The MSM5000 system software will also include support for packet data, an Internet protocol suite, voice recognition and many other features.
Qualcomm CDMA Technologies (QCT) is the leading developer and supplier of CDMA chipsets, hardware and software solutions and tools with more than 100 million MSM chips shipped worldwide. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc., ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; DENSO CORPORATION; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.
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 2000 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 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.