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December 23 -- Qualcomm Sells its CDMA Consumer Business to Kyocera – a Japanese Company

QUALCOMM Inc., the pioneer and promoter of Code Division Multiple Access (CDMA), and Kyocera Corporation, a leading Japanese wireless phone manufacturer, announced that they have reached a definitive agreement, which is expected to be closed in February 2000.  Under the terms of the agreement, Kyocera will acquire QUALCOMM’s terrestrial-based wireless CDMA consumer phone business, including its phone inventory, manufacturing equipment and customer commitments. In addition, Kyocera agreed to purchase a majority of QUALCOMM’s CDMA chipset and system software for a period of five years.

“This agreement is intended to further increase the demand for CDMA, the world’s fastest growing wireless technology,” said Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM.

Wall Street analysts and investors must truly believe Dr. Jacob’s words.  As 1999 was drawing to a close, they were giving QUALCOMM and its CDMA technology one last vote of confidence as its shares rose by $156, or 31 percent, to $659.  For now, the perception among those in the investment community is that CDMA is the de facto wireless standard. 

For more information, go to http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=qcom&script=410&layout=9&item_id=66380

MobileInfo Advisory and Comments :   CDMA is the default standard in North America. But will Kyocera stay in this hotly competitive field - good news is that other companies are also in the same space.

Note: This news release contains forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.  

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