INTEL and Symbol Technologies Sign Multi-Year Joint Development Pact For Advanced Wireless Networking Products
$100 Million Investment In Symbol By Intel Also Planned
SANTA CLARA, Calif. and HOLTSVILLE, N.Y.--(BUSINESS WIRE)--Feb. 14, 2000--Intel Corporation (NASDAQ: INTC) and Symbol Technologies (NYSE: SBL) today announced the two companies have entered into a multi-year joint development agreement to create advanced wireless networking capabilities and products. Intel plans to invest $100 million in Symbol (equaling approximately 1.4 million shares, representing an ownership stake of about 1.5%).
Intel and Symbol will devote a total of more than 200 silicon, hardware and software engineers, as well as complementary teams of marketing and sales professionals to develop wireless high-speed local area networking (LAN) technologies. The technology will help allow mobile, handheld and desktop computers to communicate with both corporate networks and the Internet without requiring a direct wire connection.
The two companies will focus their efforts on developing silicon, adapter cards and "access points" (devices that serve as a central base station or gateway to wired networks) required for advanced wireless networking. Intel also plans to sell the underlying silicon chips for building these capabilities into other products. The jointly developed products will be based on the IEEE 802.11 wireless networking standard and will include 2.4 and 5.2 gigahertz wireless LAN technology.
"As networking and the Internet become increasingly crucial to transacting day-to-day business activity, Intel believes the ability to connect to corporate networks and the Internet without the physical limitation of wired connections is essential," said Mark Christensen, vice president and general manager of Intel's Network Communications Group. "The wireless technology that Intel and Symbol are developing will significantly increase employee productivity and reduce the expense associated with hardwiring new networks."
"Combining Symbol's leading wireless LAN technology with Intel's recognized silicon expertise will accelerate the mass production of high-speed, low-cost wireless LAN chipsets," said Tomo Razmilovic, Symbol's president and chief operating officer. "By working with a global technology leader like Intel, we can dramatically increase the use of wireless LANs worldwide and expand the vertical markets for Symbol's bar code scanner-integrated mobile computing devices. This partnership moves the world closer to ubiquitous, wireless Internet connectivity -- anywhere, anytime."
Under the joint development agreement, Intel and Symbol will have equal rights in perpetuity to the products and intellectual property the two companies jointly create, as well as the right to manufacture and sell derivatives of those products. The agreement also includes an option, under certain circumstances, for Intel to purchase a portion of the Symbol's Wireless division.
Specific financial terms of the accord were not disclosed. The agreement is subject to Hart Scott Rodino approval and certain customary closing conditions.
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information is available at www.intel.com/pressroom. Symbol Technologies, Inc. is a global leader in wireless and Internet-based mobile data management systems and services. Symbol provides its customers unique value with innovative solutions utilizing application-specific information appliances, data and voice wireless networks, and bar-code and data-capture scanning. Symbol and its global network of business partners provide wireless LAN and WAN mobility solutions from the enterprise to e-commerce for industries including retail, transportation and distribution logistics, manufacturing, parcel and postal delivery, healthcare, hospitality and education. Further information is available at www.symbol.com.
Forward Looking Statement
This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include price and product competition, dependence on new product development, reliance on major customers, customer demand for our product and services, readiness for Year 2000, control of costs and expenses, international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Symbol with the Securities and Exchange Commission. Symbol disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Contact:
INTEL CONTACTS:
Tom Beermann
Business Press
(408) 765-6855
tom.beermann@intel.com
or
Jessica Daughetee
Trade Press
(503) 264-1216
jessica.daughetee@intel.com
or
SYMBOL CONTACTS:
Doug Picker
Media
516-738-4699
or
Ken Jaeggi
Investors
516-738-3909
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