SAN DIEGO -- July 24, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it no longer plans to spin off its integrated circuits and system software business (Qualcomm CDMA Technologies or "QCT").
The spin-off was intended to allow QCT, through patent cross-license agreements, to gain reasonable access as a separate company to third party intellectual property through cross-license agreements that may be necessary for the supply of multi-mode (including WCDMA and GSM) integrated circuits. Since announcing the spin-off in July 2000, Qualcomm has entered into approximately 40 license agreements or extensions including NEC, Fujitsu, Matsushita, Nokia and others covering third-generation CDMA systems. Qualcomm has received rights to supply multi-mode integrated circuits and system software under each of these agreements or extensions.
"Last year we viewed the spin-off as necessary, among other things, to minimize potential patent litigation that could arise as a result of Qualcomm selling multi-mode chipsets, including WCDMA and GSM technology," said Dr. Irwin M. Jacobs, chairman and chief executive officer of Qualcomm. "Since that time, we have entered into agreements that provide us considerable freedom to support the global expansion of the wireless industry by supplying integrated circuits and software that support one or more modes of CDMA as well as GSM. Although we are withdrawing our plan to spin off our semiconductor business, we would reconsider if conflicts arise that adversely affect our ability to operate each business in the best interests of our shareholders."
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (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 ability to design and sell integrated circuits and system software without third party's assessing their patents against the Company or its products, 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.