SAN DIEGO -- November 2, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that it has received a ruling from the Internal Revenue Service (IRS) indicating that the proposed spin-off of its integrated circuits and system software business (Qualcomm CDMA Technologies), referred to as Qualcomm Spinco ("Spinco"), should be a tax-free distribution to Qualcomm and its stockholders, provided that the spin-off is executed in accordance with the representations made in the ruling request.
Qualcomm stockholders of record as of the record date, which is yet to be determined, would receive shares of Spinco common stock, at a ratio to be determined, and cash payments for fractional shares. Cash received in lieu of fractional shares would be taxable for U.S. federal income tax purposes.
The Company also announced that consideration of the Initial Public Offering of Spinco common stock will be postponed until January of 2001 due to unfavorable market conditions.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (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; digital cinema systems; and 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 90 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 relating to the proposed separation and spin-off of Qualcomm's integrated circuits and system software solutions business, including the tax consequences of the transaction to Qualcomm and its stockholders, and changes in business climate or market conditions, or other factors which could make the proposed Initial Public Offering and/or spin-off unadvisable. This release also contains forward-looking statements that are subject to risks including those detailed from time to time in Qualcomm's SEC reports, including its report on Form 10-K for the year ended September 26, 1999, and most recent Form 10-Q.