SAN DIEGO -- March 11, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today acknowledged the announcement made by Telefónica Móviles regarding the execution of a non-binding Letter of Intent (LOI) to acquire a controlling interest in Pegaso Telecomunicaciones, S.A. de C.V., a wireless operator in Mexico. As contemplated by the LOI, Telefónica would acquire 65 percent of Pegaso's equity from existing shareholders and the Burillo Group would continue to own 35 percent. Consummation of the transaction is dependent on satisfying certain requirements, including but not limited to executing definitive documents and obtaining all necessary regulatory approvals.
Specific financial terms were not disclosed as the parties to the LOI are subject to a confidentiality agreement. Tony Thornley, president and chief operating officer of Qualcomm, did disclose, however, that the transaction, as proposed, "Would maintain the value of Qualcomm's investment in Pegaso." Also, Mr. Thornley said, "As a result of the transaction, a portion of the amounts owed by Pegaso to Qualcomm will be repaid and Qualcomm would support Telefónica's Mexican operation as a senior secured lender."
"We look forward to Telefónica Móviles, one of the world's leading wireless companies, leveraging its international experience and combining Telefónica Móviles' existing Mexican operations with Pegaso's into a nationwide CDMA network in Mexico."
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. 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 parties negotiating, executing and delivering definitive documents consistent with the terms and conditions of the LOI, the transaction receiving necessary regulatory approvals and ultimately the success of Telefónica Móviles in successfully operating a Mexican wireless network, 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 30, 2001, and most recent Form 10-Q.