SAN DIEGO -- Nov. 14, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the formation of Qualcomm Ventures, an organization that will make strategic investments in startup companies globally to support the adoption of CDMA and drive usage of the wireless Internet. Qualcomm is making a $500 million commitment to this strategic initiative that will be invested over a period of four years.
Qualcomm's experience in telecommunications and the Internet uniquely positions the Company to lead the convergence of these industries through strategic investments in a variety of market segments. Companies receiving investments from Qualcomm Ventures will benefit from access to Qualcomm's research and development expertise, engineering resources, business and strategic relationships, and other portfolio companies.
Qualcomm Ventures will be managed by Jeff Jacobs, senior vice president of business development for Qualcomm. In his current role, Jacobs is responsible for Qualcomm's investments, strategic partnerships and new business opportunities. Previously, Jacobs helped guide Qualcomm's Internet efforts after founding and managing Qualcomm's Eudora Products. He also helped grow the Company's OmniTRACS business (Qualcomm Wireless Business Solutions) to be the industry's leading provider of wireless data solutions. Most recently, Jacobs has led the Company's 1xEV (HDR) activities. An advisory committee, comprised of senior executives from Qualcomm with extensive technical expertise, industry knowledge and corporate relationships, will guide the investment strategy and participate in venture development activities.
"The convergence of wireless technology and the Internet has created opportunities for new products, applications and services, and we look forward to helping drive these innovations," said Jeff Jacobs. "Qualcomm Ventures will focus on strategic investments in promising, young startup companies that can deliver these new capabilities and accelerate CDMA usage worldwide."
Qualcomm Ventures will target strategic investments within the following areas: communications devices and applications; wireless communications components and infrastructure; Internet infrastructure, content and services; and, enabling and complementary technologies. Several companies have already benefited from Qualcomm's extensive technical expertise, industry relationships and demonstrated leadership in bringing new ideas to market. Qualcomm's past and present strategic investments include AirFiber, Inc., Front Porch Communications, Inc., Graviton, Inc., GTRAN, Inc., HAHT Commerce, Inc., Handspring, Inc., ideaEDGE Ventures, inviso, Inc., ignition Corporation, PacketVideo Corporation, PayPal, Phone.com, Inc., RF Micro Devices, Inc. and SkyDesk."
Qualcomm has enabled GTRAN's deployment of its wireless multimedia access products by providing strategic marketing insight and engineering development support,'' said Deepak Mehrotra, founder and chief operating officer, GTRAN. "GTRAN has leveraged Qualcomm's relationships with major carriers globally to understand customer requirements and deployment schedules. Our engineers, with access to the latest technology developments at Qualcomm, are working on next-generation data-centric CDMA applications."
"The PacketVideo and Qualcomm relationship represents the combination of two best-of-breed technology providers that will be facilitating a complete wireless solution for the delivery of rich media to handheld devices," said Dr. James Brailean, president, chief technology officer and co-founder of PacketVideo. "Our relationship with Qualcomm ensures that PacketVideo's wireless media technology will be optimized for the global leader in CDMA chipset technology, offering mobile users of CDMA devices the richness of sight, sound, animation and moving pictures."
The size of each strategic investment is expected to be up to $10 million. Qualcomm Ventures will consider participating in a variety of private financing rounds, with a preference for early-to mid-stage private ventures. Separate from Qualcomm Ventures, Qualcomm Incorporated will continue to make larger strategic investments in public companies, joint ventures and wireless carriers to promote CDMA usage worldwide. These investments have included Korea Telecom Freetel, Leap Wireless International, Inc., NetZero, Inc., Shinsegi Mobile, VeloCom Inc., Wingcast and Wireless Knowledge, Inc.
For more information on the application process, please visit the Qualcomm Ventures web site athttp://www.qualcomm.com/about/businesses/ventures.
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; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that 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 contained forward looking statements that are subject to risks and uncertainties, including the Company's ability to successfully attract quality strategic investment opportunities in startup companies, the potential risk to the Company of capital loss from its strategic investments, the lack of ability to predict with certainty the timing of liquidity and returns on these investments, the risks related to the loss of management focus in providing support to multiple startup companies (which, due to their early stage of development, may require greater amounts of Company management attention) and the lack of guarantees that the strategic investments made by the Company will ultimately produce successful products or services and thereby increase CDMA royalties, 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 24, 2000, and the most recent Form 10-Q.