SAN DIEGO -- July 20, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA), today announced an amendment to SANYO's existing CDMA subscriber unit license agreement. Prior to the amendment, SANYO's CDMA license covered cdmaOne™ applications only. With the amendment, SANYO's CDMA subscriber license agreement has now been expanded to grant SANYO a license under Qualcomm's essential CDMA patent portfolio to develop, manufacture and sell subscriber equipment for all modes of the third-generation (3G) CDMA standard, including cdma2000, W-CDMA and TD-SCDMA, and Qualcomm's High Data Rate (HDR) technology. Under the terms of the amendment, SANYO has agreed to pay Qualcomm a multi-million dollar license fee and ongoing royalties as SANYO begins selling 3G CDMA equipment.
The royalties payable to Qualcomm by SANYO are the same as in the pre-existing agreement for cdmaOne products and irrespective of the licensed CDMA standard. "The extension of this license agreement will now enable SANYO to support the CDMA market through its supply of equipment for all CDMA standards," said Steve Altman, president of Qualcomm Technology Alliances. "As a leader in the information systems and mobile communications markets, we anticipate SANYO to be a significant contributor to the worldwide growth of CDMA."
"We foresee our next generation of communications products incorporating CDMA, the leading digital wireless technology," said Eiji Kotobuki, vice president of Multimedia Company and general manager of Personal Telecommunication Division of SANYO. "We believe CDMA provides inherent advantages in both voice and data communications and we look forward to offering these advantages to our customers worldwide."
SANYO is a global leader in multimedia and mobile communications. The company's businesses cover a broad range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries and other products. SANYO's consolidated net sales in fiscal 2000, concluded in March 31, 2000, amounted to 1,940.3 billion yen (US $18,305 million). The SANYO group is truly an international organization, consisting of 149 affiliates employing over 110,000 persons globally.
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 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.