Press Release

Sierra Wireless and Qualcomm Sign a Series of Agreements

Jun 22, 2000SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

Vancouver, B.C. -- June 22, 2000 -- Sierra Wireless Inc. (NASDAQ: SWIR - TSE: SW) and Qualcomm Incorporated (NASDAQ: QCOM) today announced a series of agreements which include the purchase by Sierra Wireless' wholly owned subsidiary Sierra Wireless SRL of Qualcomm's Code Division Multiple Access (CDMA) module business, including its module inventory, manufacturing and customer commitments. In addition, Sierra Wireless has signed a supply agreement for CDMA modules and has extended its existing license agreement with Qualcomm. The financial terms of the agreements were not disclosed.

With the addition of these OEM module products, Sierra Wireless will accelerate time-to-market delivery and will broaden its CDMA product line to include PC Cards and OEM modules.

"Qualcomm congratulates Sierra Wireless on its commitment to expand its CDMA data products," Gina Lombardi, vice president of product development for Qualcomm. "We look forward to working with Sierra Wireless to meet the needs of the growing CDMA mobile computing market."

Sierra Wireless' exclusive CDMA module supply agreement with Qualcomm's Wireless Business Solutions division extends through the third quarter of 2002. Sierra Wireless will supply CDMA data modules that will be integrated into Qualcomm's new OmniExpress™ mobile communications system, a product that provides two-way mobile communications and tracking to the transportation industry. Initially, the solution will use today's circuit-switched CDMA IS-95A technology, and will evolve to next-generation, CDMA 1XRTT packet-based, wireless technology.

"Qualcomm Wireless Business Solutions is pleased to have entered into a strategic supply relationship with Sierra Wireless for supply of the CDMA modules, which are a necessary component of our OmniExpress product," said Susan Rile-Strauss, vice president of manufacturing for Qualcomm Wireless Business Solutions. "We look forward to working with Sierra Wireless to grow this business."

The expansion of the existing CDMA license agreement, between Sierra Wireless' subsidiary Sierra Wireless SRL and Qualcomm, now covers a broader range of subscriber equipment, including 1x handheld phones. Qualcomm and Sierra Wireless previously agreed to expand the license agreement to include High Data Rate (HDR) terminals.

"With this agreement, we are very pleased to add new OEM products to our CDMA product line. The addition of Qualcomm Wireless Business Solutions as a key customer for current generation and next-generation 1x modules further illustrates our strength in CDMA data product leadership," said Glen Brownlee, Executive Vice President and Chief Operating Officer, Sierra Wireless, Inc. "The expansion of our CDMA license allows us greater flexibility in creating and growing our future product roadmaps as high speed networks emerge and as voice and data devices converge. Overall, the agreements further our relationship with Qualcomm in building the demand for high-speed CDMA data applications for emerging markets worldwide."

About Qualcomm Incorporated
Qualcomm Incorporated ( 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.

About Sierra Wireless
Sierra Wireless, Inc. is a leading provider of wireless data communications hardware and software products. Sierra Wireless delivers wireless PC Cards for portable computers, rugged vehicle-mounted wireless modems and OEM modules for embedded applications. Sierra Wireless is the founding member of the WirelessReady™ Alliance, an alliance of industry-leading hardware, software and service companies committed to the delivery of complete and compelling wireless data solutions.

Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding future revenues depend upon our ability to manufacture and supply CDMA products, which we do not produce today, and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.


Qualcomm, OmniTRACS and Eudora are registered trademarks of Qualcomm Incorporated. OmniExpress, is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc. All other trademarks are the property of their respective owners.

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