SAN DIEGO -- November 1, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has signed a commercial license with Huawei Technologies Co. Ltd., one of the largest domestic infrastructure providers in China. Under the terms of the royalty-bearing license agreement, Qualcomm has granted Huawei a license under Qualcomm's CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV network equipment. The license grants Huawei the right to use Qualcomm's patented technology and chipsets to make and sell cdmaOne and CDMA2000 1X equipment in China and worldwide.
"Huawei is a key wireless infrastructure provider in the People's Republic of China, a strong supporter of the effort to deploy commercial CDMA products to the vast market for wireless equipment in China, and a welcome and impressive addition to the excellent group of companies that are licensed by Qualcomm to supply CDMA products," said Marv Blecker, senior vice president of technology transfer for Qualcomm. "Qualcomm continues to build on its leadership and expertise in developing, delivering and licensing innovative wireless solutions and technology."
"This agreement will allow Huawei to develop CDMA products and make them commercially available," said William Xu, executive vice president of Huawei. "Huawei has been an advocate of CDMA development and deployment in China and we are pleased to work with Qualcomm to help contribute to a rapidly growing Chinese and worldwide CDMA market."
Incorporated in 1988 and headquartered in Shenzhen, China, Huawei Technologies (www.huawei.com) is a private high-tech enterprise fully owned by its employees. Huawei specializes in research and development (R&D), production and marketing of telecommunications equipment, providing customized network solutions for telecom carriers in fixed, mobile and data communications networks. Sales in 2000 were around $2.6 billion. Huawei products have been put into application in over 40 countries and regions including China, Thailand, Singapore, Brazil, Kenya, Russia, Germany, United States and Hong Kong. In China, Huawei customers include China Telecom, China Mobile, China Unicom and other telecom operators. Among Huawei's 19,000 employees, 45 percent are engaged in R&D. Each year, Huawei invests no less than 10 percent of its revenues into R&D.
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 chipsets 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, including but not limited to express or implied statements regarding the anticipated benefits to Qualcomm from the agreement, that are subject to risks and uncertainties, including the extent and speed to which CDMA is deployed in China and by Huawei, 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.