SAN DIEGO -- June 3, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the dissolution of Wingcast, LLC, a joint venture owned approximately 85 percent by Ford Motor Company (NYSE: F) and 15 percent by Qualcomm that was created in October 2000 to provide telematics services.
Ford Motor Company has been the sole funding contributor of Wingcast since May 2001. Prior to that date, Qualcomm had invested $25 million in exchange for an approximate 15 percent equity stake in Wingcast. Qualcomm had previously recorded approximately $14 million in losses related to its equity interest in Wingcast, reducing the investment to approximately $11 million. Today's decision to dissolve Wingcast is expected to result in the impairment of certain Wingcast assets. As a result, Qualcomm expects to write off up to approximately $11 million on its remaining investment in the third fiscal quarter of this year.
"CDMA technology provides the best platform for high-speed data access for telematics services," said Dr. Paul E. Jacobs, president, Qualcomm Wireless and Internet Group. "Qualcomm is continuing to work with CDMA licensees, carriers and automobile manufacturers on telematics solutions that will leverage advanced wireless data services being deployed today. Qualcomm will continue to benefit from its license to use some of the intellectual property developed by Wingcast."
"Ford Motor Company is still committed to the objective of providing telematics services in its vehicles, including the use of CDMA technology, but we do not believe it is necessary to have equity interest in a telematics service provider in order to meet that goal," said Douglas R. VanDagens, director of Wireless Mobility, Ford Motor Company.
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. 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 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 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 30, 2001, and most recent Form 10-Q.