SAN DIEGO -- June 24, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that more than one million end users around the world have purchased and activated BREW-enabled handsets since November 2001. Three carriers are currently offering wireless applications for Qualcomm's Binary Runtime Environment for Wireless™ (BREW) platform. South Korean operator KTF was the first to launch BREW-enabled services, announcing their BREW-enhanced magic n multipack™ service in mid-November 2001. KDDI in Japan and Verizon Wireless in the United States followed, launching wireless data applications via the BREW platform in March 2002. End users with BREW-enabled handsets can download applications wirelessly - over the air - and personalize their mobile devices with the applications they want and need.
"This milestone substantiates that, to date, the uptake for the BREW solution has outpaced any other wireless application solution available today," said Peggy Johnson, president of Qualcomm Internet Services. "Qualcomm expects the demand for BREW services and BREW-enabled handsets to accelerate as carriers continue to adopt the BREW environment as their primary wireless data application platform. Being the 'first mover' in this space, by offering a truly complete technical and business solution, will continue to be an advantage for Qualcomm."
Today, KTF's BREW-enhanced magic n multipack service customers can personalize their wireless experience via a catalogue of more than 300 applications available on 10 different BREW-enabled handsets. Customers in Japan and the United States are eagerly purchasing BREW-enabled handsets to access a variety of entertainment, games, communications, information and productivity applications. Verizon Wireless selected San Diego as its initial launch market and on June 17 began offering commercial BREW products and services nationwide.
Deployments of the BREW solution are expected to increase dramatically over the next year as carriers throughout the world commercialize BREW-based services. Telesp Celular, the largest mobile phone operator in Brazil, has announced its plans for a BREW user trial. ALLTEL, with more than 10 million customers in the United States, also announced its agreement with Qualcomm, signaling the carrier's intent to launch its BREW-based service by the third quarter of 2002. The global outlook for Qualcomm's BREW initiative is promising as 16 carriers worldwide have indicated support for the BREW solution and developers and handset manufacturers continue to embrace the platform.
"We are proud of our association and membership in the global BREW community," said John Stratton, vice president and chief marketing officer, Verizon Wireless. "In late March of this year, we launched our first commercial market here in San Diego and every indicator is running extremely positive. Our handset sales well exceeded our projections and our downloads per customer were significantly higher than expected. We're enthusiastic about the results and the great thing is that they have been sustained from the first week of launch and continue to build and grow. We're seeing breadth and depth in our results in San Diego that we absolutely believe is translatable to every other market in the United States."
"Wireless data revenues continue to increase, generating a large portion of KTF's total revenue," said InSoo Park, vice president, Internet Business Division, KTF. "By 2005 KTF expects to generate one fourth of its revenue from data services. In order to achieve that percentage and become the mobile leader in data services by 2005, KTF needs a platform such as BREW, as well as a high-speed network and handsets that work with a high-speed network."
"The commercial shipment of BREW handsets will usher in a new era of wireless services that exist primarily to bring ease, pleasure and functionality to our users," said Dr. Yasuhiko Ito, executive managing officer, Solution Business Sector, KDDI. "BREW is well suited to deal with high-performance applications. For high-speed applications BREW is the only one."
Qualcomm's BREW platform is a thin application execution environment that provides an open, standard platform for wireless devices. The BREW platform is part of a complete, end-to-end solution for wireless applications development, device configuration, application distribution, and billing and payment. The complete BREW solution includes the BREW SDK™ (software development kit) for developers, the BREW applications platform and porting tools for device manufacturers, and the BREW Distribution System (BDS) that is controlled and managed by carriers - enabling them to easily get applications from developers to market and coordinate the billing and payment process. Carriers' BREW-based services will enable consumers to customize their handsets by downloading applications over the air from a carrier's application download server. The BREW platform is a product of Qualcomm Internet Services (QIS), a division within the Qualcomm Wireless&Internet (QWI) Group of Qualcomm Incorporated.
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 BREW applications platform; QChat™ push-to-talk technology; 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 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 extent and speed to which the BREW platform is adopted by carriers and used by consumers, 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.