TAIPEI, Taiwan -- June 21, 2001 -- At a joint press conference today, held at the Grand Hyatt Hotel in Taipei, Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and HTC Corporation announced a minority equity investment in HTC by Qualcomm and a worldwide multi-million dollar, royalty-bearing CDMA subscriber unit and modem card license agreement. The agreement makes HTC the first company in Taiwan to be granted a CDMA second and third- generation (3G) license by Qualcomm to develop, manufacture and sell subscriber unit and CDMA modem card products for standards including cdmaOne™, CDMA2000 1x/1xEV, WCDMA and TD-SCDMA.
"The partnerships and the products we have developed reflect our goal to be the number one ODM wireless handheld device manufacturer in the world," said HT Cho, president of HTC Corporation. "We not only offer world-leading manufacturing, engineering and design skills but also the rich experience we have from the technological solutions HTC has initiated. The cooperation with Qualcomm again expands the value, expertise and resources that we can provide our customers."
In his speech, Paul Jacobs, executive vice president of Qualcomm, spoke of the opportunities HTC had secured for itself and explained his company's decision to invest in HTC.
"This license for Qualcomm's essential CDMA patent portfolio will allow HTC to develop and manufacture advanced third-generation CDMA voice and data wireless communications solutions for the mobile market. Qualcomm is pleased to help HTC meet the growing demand for wireless Internet access," Jacobs said. "The rollout of 3G networks and the provision of 3G services will be exciting and challenging. Our decision to invest in HTC is calculated to make sure devices that can utilize the full potential of 3G are on the market when the service becomes available. Combining HTC's expertise in Pocket PC and mobile device engineering with Qualcomm's CDMA technology will facilitate the creation of a formidable range of wireless smart handheld devices and smart phones ready for 3G."
During the conference Peter Chou, vice president of mobile wireless engineering at HTC, outlined the importance of the license agreement for product research and development at the company, and the strong position it placed HTC compared to its competitors.
"As HTC's strategy is focused around developing wireless mobile computing and communication devices for its customers, licensing Qualcomm's CDMA technology will enable us to achieve our goal of becoming a major player in the wireless Internet marketplace and fulfill the need for advanced digital wireless devices," Chou said.
HTC, based in Taiwan and operating as an ODM manufacturer, is a world leader in the field of wireless smart handheld devices. Its customers are among the world's leading telecommunication and computer companies. Founded in May of 1997, the Company has seen phenomenal growth: for each of the past 3 years, revenue has increased by over 300%, with estimated revenue for 2001 to be over 600 million U.S. dollars; the workforce now numbers over 1600; and, after opening a new high-volume manufacturing plant, there is the capacity to produce 1 million units a month.
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; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; Eudora® e-mail software; 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 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 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.