SAN DIEGO -- July 6, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and SK Telecom (NYSE: SKM), a major player in information and communications, today announced an initiative to jointly invest in venture startup companies engaged in the development and commercialization of new and unique CDMA-based products, applications and services. This effort will foster creative and advanced mobile applications to enable a wide variety of high-speed voice and data wireless solutions such as e-mail, web-browsing, mobile e-commerce, telematics and streaming video, thereby driving the worldwide usage of CDMA technology. Qualcomm and SK Telecom are each committing $5 million to the initiative.
Qualcomm is a company driven by innovation, providing advanced CDMA voice and data solutions that enable existing and next-generation wireless services. As a wireless innovator, Qualcomm is well positioned to drive the wireless market to third-generation applications including wireless Internet access. SK Telecom is a leader in developing and delivering advanced wireless communications based on CDMA technology for the South Korean market. Startup companies receiving capital investment from the joint investment company will benefit by gaining access to Qualcomm's research and development expertise and engineering resources for CDMA applications such as cdmaOne™ and CDMA2000 1x/1xEV, as well as from SK Telecom's extensive experience in providing the highest quality of wireless services to its consumers.
"Qualcomm is pleased to announce this investment initiative with SK Telecom and we look forward to working together on mutually beneficial business opportunities that will help drive and accelerate the use of CDMA worldwide," said Jeff Jacobs, president of global development for Qualcomm.
"SK Telecom is proud to be a part of this effort that will help support promising, young startup companies positioned to deliver cutting-edge CDMA products and services to meet the demand of a rapidly growing worldwide wireless market," said Moon Soo Pyo, president of SK Telecom.
SK Telecom is shaping the future of information and telecommunications in Korea and beyond. In January 1996, SK Telecom successfully launched the world's first commercial CDMA cellular service. On the basis of the high capacity and superior voice quality of its CDMA system, the Company has over 13.8 million cellular subscribers as of May 31, 2001 and is the largest CDMA cellular service operator in the world. SK Telecom maintains 50.4% of market share in the national cellular market. The Company is also offering n.TOP service, which has brought wireless Internet access to Korea. The n.TOP is Korea's first service to adopt the Wireless Application Protocol (WAP), providing access to a vast range of content options. Aiming to be a major world player in information and communications, SK Telecom already has established a presence in China, Northeast Asia and Southeast Asia. SK Telecom, with extensive experience and technology related to first-generation analog and second-generation CDMA wireless communications, is leading the race to develop the third-generation IMT-2000 system and services. Once commercialized, IMT-2000 will help to make life better in numerous ways.
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 Qualcomm's and SK Telecom's ability to successfully attract quality investment opportunities in startup companies, the potential risk to the companies of capital loss from its 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 investments made by the companies will ultimately produce successful products or services and thereby increase CDMA royalties, as well as the other risks detailed from time to time in Qualcomm's and SK Telecom's respective SEC reports, including reports on Form 10-K and most recent Form 10-Q.