SAN DIEGO -- July 11, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has entered into a CDMA worldwide subscriber unit license agreement with Cherish Telecom, headquartered in Taipei, Taiwan. Under the terms of the multi-million dollar, royalty-bearing agreement, Qualcomm has granted Cherish Telecom a license to develop, manufacture and sell subscriber unit products for cdmaOne™, cdma2000™, and High Data Rate (HDR) technology for wireless applications, including cellular, Personal Communications Services (PCS) and wireless local loop, using Qualcomm's proprietary CDMA technology and patents.
"Cherish Telecom has experience in developing and manufacturing terminals and cordless phone products," said Marvin Blecker, senior vice president of technology transfer for Qualcomm. "We expect Cherish Telecom to make significant contributions to the rapidly expanding CDMA marketplace."
Cherish Telecom, founded in 1981, is a Taiwan-based ODM (Original Design Manufacture) and an OEM (Original Equipment Manufacture) manufacturer of telecommunication devices, including cordless phones (46/49 MHz, 900 MHz, 2.4 GHz). Cherish is currently the largest manufacturer of cordless telephone units in Taiwan and maintains a highly diversified, advanced technology research and development department, acutely focused on the global market demands for its products. Since Cherish's inception in 1981, the company's core management philosophy has been to "be forward thinking in development, dependable in quality and trustworthy in service." This year, the company's objectives are directed towards wireless communications, focusing heavily on second-generation GSM technology, CDMA technology and cellular phones and future generations of cellular phones based on ODM. Cherish Telecom is currently discussing with telecommunications companies in Korea, Japan and Europe to execute OEM contracts. The contracts are expected to be completed in September 2000. With the addition of these OEM products, Cherish Telecom will accelerate time-to-market delivery and broaden its CDMA product line to offer various opportunities to strategic global partners.
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.