SAN DIEGO -- July 15, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has signed a license agreement for Application Specific Integrated Circuits (ASICs) with NEC Corporation. Qualcomm has granted NEC a worldwide license under Qualcomm's CDMA patent portfolio to develop, manufacture and sell third-generation (3G) WCDMA and TD-SCDMA ASICs products. Under the terms of the agreement, NEC will pay Qualcomm an up-front license fee and ongoing royalties as NEC begins selling WCDMA or TD-SCDMA ASICs. The agreement does not cover ASICs for other standards, including cdmaOne™ and CDMA2000 1X.
"This agreement with NEC represents further evidence of the strength of our patent portfolio and its applicability to WCDMA as well as TD-SCDMA," said Steve Altman, executive vice president and president of Qualcomm Technology Licensing. "We welcome NEC as a new ASIC licensee and hope that NEC's participation will help expand the global third-generation CDMA market."
"NEC has great respect for Qualcomm's CDMA patent portfolio and recognizes that it is essential for the development of third-generation CDMA products," said Hidetoshi Kosaka, general manager, Network System LSI Development Division, NEC Electron Devices. "NEC looks forward to expanding its product offering for the global 3G market with ASIC solutions, and continuing to work with Qualcomm on accelerating the growth of 3G CDMA."
NEC Corporation (Nasdaq: NIPNY) is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 140,000 people worldwide and saw net sales of approximately $39 billion in fiscal year 2001-2002. For further information, visit the NEC home page at http://www.nec.com/.
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 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.