SAN DIEGO and CLEVELAND -- March 1, 2001 -- Qualcomm Wireless Business Solutions, the leader in mobile communications for the transportation industry and a division of Qualcomm Incorporated (Nasdaq: QCOM), and diversified industrial manufacturer Eaton Corporation (NYSE: ETN) today announced that Qualcomm has purchased the assets of Eaton's Trucking Information Services business unit, including FleetAdvisor®, a leading transportation logistics management system. The purchase price included an undisclosed cash payment plus additional compensation based on FleetAdvisor software sales as well as OmniTRACS systems sales facilitated by Eaton. Under the terms of this agreement, Qualcomm has hired approximately 40 of Eaton's employees who have been responsible for system development and customer support.
The FleetAdvisor system includes hardware and software elements, including a broad set of applications to be offered to new and existing customers on Qualcomm's MVPc™ in-vehicle computer for automated driver logs, accurate state fuel tax calculation, enhanced work order management, increased driver and vehicle productivity, and improved customer service. The MVPc is a Windows® CE-based platform that runs custom or third-party applications and is an optional driver interface to Qualcomm's fleet management solutions, including the OmniTRACS® mobile communications system.
Qualcomm will provide product support and service to current FleetAdvisor customers, and Eaton will work with Qualcomm to promote the OmniTRACS system through Eaton's Roadranger® sales and service network. Eaton and Qualcomm have also agreed to explore further strategic relationships for developing and marketing products and services for vehicle monitoring, diagnostics and prognostics that utilize Qualcomm mobile communications capabilities and Eaton's truck systems capabilities.
"The acquisition of FleetAdvisor will allow us to offer even more valuable and complete solutions to our private fleet, truckload and LTL customers," said Chris Wolfe, senior vice president and general manager, Qualcomm Wireless Business Solutions. "Eaton has extensive experience with fleet management information systems, and we are fortunate to add the expertise and talent of the FleetAdvisor development and support staff to our Qualcomm team. We welcome the opportunity to work with existing FleetAdvisor customers and provide them with continued excellent service and support."
"Responsiveness to our customers has always been our highest priority, so we are particularly pleased that FleetAdvisor customers will now be supported by Qualcomm, a company that also has an outstanding reputation for customer service and support," said Timothy J. Morscheck, vice president and general manager of Eaton's Trucking Electronic Systems business. "We will continue to focus our resources on providing the highest quality data link control products and systems to the trucking industry, including our exclusive AutoShift® automated mechanical transmission, VORAD SmartCruise® collision warning/adaptive cruise control system and anti-lock braking systems."
With 2000 sales of $8.3 billion, Eaton Corporation (www.eaton.com) is a global, diversified industrial manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and aerospace markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drive train systems, engine components and a wide variety of controls. The company has 59,000 employees and 195 manufacturing sites in 24 countries.
Qualcomm has helped the transportation industry become more efficient since 1988 when the introduction of the OmniTRACS mobile communications system provided transportation companies with an innovative and effective way of managing logistics. Its fleet management solutions continue to set the standard by offering products and services that meet the demands of a constantly changing marketplace. With the introduction of OmniExpress™, a Code Division Multiple Access (CDMA)-based digital wireless communications and tracking system, along with trailer tracking and other industry-leading technologies, Qualcomm continues to expand into new mobile markets. With a Network Management Center that processes more than six million transactions each day and over 370,000 Qualcomm mobile systems shipped to businesses in more than 32 countries on four continents, Qualcomm continues to lead the industry in providing wireless data solutions.
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 CDMA integrated circuits and system software; technology licensing; Eudora® e-mail 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 95 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 integrate elements of the FleetAdvisor system into its own product offerings, 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.