MILPITAS and SAN DIEGO, Calif. -- June, 28, 2001 -- Solectron Corporation (NYSE: SLR) and Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced an agreement to work together to make a CDMA2000 1x handset design package available to Qualcomm licensees. The CDMA2000 handset design package, recently developed by Qualcomm, is intended to support CDMA handset manufacturers in mainland China and other emerging CDMA markets. The design package will help bring innovative, third-generation wireless products faster to market, and help accelerate the adoption of CDMA worldwide.
Under the agreement, Solectron will build and test prototypes of a CDMA2000 handset in exchange for a handset design support package intended to strengthen Solectron's ability to efficiently support CDMA handset design, manufacturing and test needs of Qualcomm's licensees seeking to outsource manufacturing.
"This is a very positive step for Solectron," said Joe Regan, vice president, Solectron. "The opportunity to work with the leader in CDMA digital wireless technology will further enhance Solectron's CDMA manufacturing and testing capabilities, and strengthen our global capabilities to better serve our customers worldwide."
"Qualcomm is focused on making CDMA technologies readily available to its growing list of licensees," said Marv Blecker, senior vice president of technology transfer for Qualcomm. "This collaboration with Solectron ensures that Qualcomm's customers have the option of outsourcing all or part of their handset manufacturing to one of the world's leading contract manufacturers."
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on Qualcomm's CDMA digital technology. Qualcomm'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.
Solectron (www.solectron.com), the world's leading supply-chain facilitator, provides a full range of manufacturing and supply-chain management services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, high-tech product manufacturing, and product warranty and end-of-life support. Solectron, based in Milpitas, Calif., is the first two-time winner of the Malcolm Baldrige National Quality Award for manufacturing.
Except for the historical information contained herein, this release contains forward-looking statements that are subject to risks and uncertainties, regarding, among other things, the anticipated benefits of the agreement based on current expectations. In particular, while the companies have announced their agreement to work together, there is no assurance that the parties will complete the intended agreement. Additional risks and uncertainties include Qualcomm's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, Solectron's ability to effectively convert the design support package into prototypes and handsets, the extent and speed to which CDMA is deployed, changes in economic conditions of the various markets the companies serve, as well as the other risks detailed from time to time in Qualcomm's and Solectron's respective SEC reports, including their reports on Form 10-K and most recent reports on Form 10-Q.