SAN DIEGO -- November 20, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced an amendment to NEC's existing CDMA subscriber unit and infrastructure license agreement which expands the licenses under Qualcomm's CDMA patent portfolio to include the development, manufacture and sale of subscriber and infrastructure equipment for third-generation (3G) CDMA (i.e., cdma2000, WCDMA and TD-SCDMA) and 1xEV (HDR) products. Under the terms of the amendment, NEC will pay Qualcomm a license fee and ongoing royalties at the same rates for 3G as those for cdmaOne equipment, irrespective of the licensed CDMA standard.
"Qualcomm's patent portfolio continues to be recognized as essential for development of all proposed third-generation CDMA systems," said Steve Altman, president of Qualcomm Technology Alliances. "We are very pleased to include NEC to our growing list of second and third-generation CDMA licensees. Working together, Qualcomm and NEC successfully deployed CDMA in the Brazilian market. With its experience in CDMA, its existing supply relationship with NTT DoCoMo and its expanding presence in Europe, we expect NEC to be a major supplier of CDMA equipment, including WCDMA. In fact, NEC was one of the earliest companies to announce shipment of WCDMA equipment to NTT DoCoMo."
"Qualcomm is the pioneer in CDMA technology," said Toshiyuki Takenaka, associate senior vice president and executive general manager for NEC Corporation. "We are pleased that NEC extended its existing license agreements to enable it to continue to supply CDMA systems. We look forward to continuing our positive relationship with Qualcomm and help grow the worldwide CDMA market. As the chair of the TSG Radio Access Network of 3GPP, NEC greatly contributes to the elaboration of Release 99&00 standard."
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) (TSE: 6701) is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 150,000 people worldwide and saw net sales of 4,991 billion Yen (approx. US$48 billion) in fiscal year 1999-2000. For further information, please visit the NEC home page at: http://www.nec-global.com
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 contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, 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 24, 2000, and most recent Form 10-Q.
Qualcomm, OmniTRACS and Eudora are registered trademarks and OmniExpress is a trademark of Qualcomm Incorporated. cdmaOne is a trademark of the CDMA Development Group. 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.
November 20, 2000November 20, 2000