QUALCOMM Withdraws Plan to Spin Off its Semiconductor Business; Company to Continue to Focus on Growth and Deployment of CDMA Worldwide
( BW)(CA-QUALCOMM)(QCOM) QUALCOMM Withdraws Plan to Spin Off its
Semiconductor Business; Company to Continue to Focus on Growth and
Deployment of CDMA Worldwide
Business Editors/High-Tech Writers
SAN DIEGO--(BUSINESS WIRE)--July 24, 2001--QUALCOMM Incorporated
(Nasdaq:QCOM), pioneer and world leader of Code Division Multiple
Access (CDMA) digital wireless technology, today announced that it no
longer plans to spin off its integrated circuits and system software
business (QUALCOMM CDMA Technologies or "QCT").
The spin-off was intended to allow QCT, through patent
cross-license agreements, to gain reasonable access as a separate
company to third party intellectual property through cross-license
agreements that may be necessary for the supply of multi-mode
(including WCDMA and GSM) integrated circuits. Since announcing the
spin-off in July 2000, QUALCOMM has entered into approximately 40
license agreements or extensions including NEC, Fujitsu, Matsushita,
Nokia and others covering third-generation CDMA systems. QUALCOMM has
received rights to supply multi-mode integrated circuits and system
software under each of these agreements or extensions.
"Last year we viewed the spin-off as necessary, among other
things, to minimize potential patent litigation that could arise as a
result of QUALCOMM selling multi-mode chipsets, including WCDMA and
GSM technology," said Dr. Irwin M. Jacobs, chairman and chief
executive officer of QUALCOMM. "Since that time, we have entered into
agreements that provide us considerable freedom to support the global
expansion of the wireless industry by supplying integrated circuits
and software that support one or more modes of CDMA as well as GSM.
Although we are withdrawing our plan to spin off our semiconductor
business, we would reconsider if conflicts arise that adversely affect
our ability to operate each business in the best interests of our
shareholders."
CONTACT: QUALCOMM Incorporated
Richard Tinkler, Corporate Public Relations
858/651-3628, Fax: 858/651-5873
rtinkler@qualcomm.com
or
Julie Cunningham, Investor Relations
858/658-4224, Fax: 858/651-9303
jcunningham@qualcomm.com |
