**ot cdma Pantech-Motorola tie up for world market
By Yoo Choon-sik
SEOUL, May 19 (Reuters) - South Korean venture firm Pantech Co (25930.KS) sees its dream of becoming a global player
for mobile communications equipment taking shape under its alliance with Motorola Inc (MOT - news), Pantech president said
on Tuesday.
''The alliance with Motorola will pave the way for us to become one of the world's leading makers of cellular telephone sets
and other mobile communications devices,'' Pantech's president Park Byeong-yeop told Reuters in an interview.
Pantech on Tuesday announced it would issue 3.89 million common shares and sell them to U.S. telecommunications giant
Motorola for 4,505 won per share ($3.12), against the stock's closing price of 5,470 won.
Motorola will become the second-largest shareholder in Pantech with 20 percent. Park said he and his associates would have a
stake of about 30 percent after the rights issue.
Motorola would sit two non-permanent members on Pantech's board of directors, but Pantech's management would be largely
unaffected by the alliance, he said.
In addition to the $13-million deal, Park said his company was also talking with Motorola about another $2 million investment
to support research and development activities.
''The additional investment will be made in the form of an R&D investment as a major shareholder or a stake investment in
setting up a joint venture research subsidiary,'' he said.
Park said he expected his company's annual sales to double to between 150 billion won and 160 billion won for calendar 1998
from 76.25 billion in 1997.
''Next year our sales will grow by three to four fold, largely aided by significantly increasing exports under the partnership with
Motorola,'' Park said.
He said exports would account for more than 80 percent of the company's annual sales next year, up from about 60 percent
expected for this year and around 30 percent last year.
''We have agreed to supply a huge number of digital mobile telephone sets to Motorola on an OEM (original equipment
manufacturing) basis,'' Park said, without elaborating.
Motorola also hailed the deal.
Its Korea Group president George Turner said in a statement: ''Our decision to partner with Pantech is a testimony to their
significant capabilities in CDMA technology.'' CDMA, or code-division multiple access, is one of a number of digital wireless
technologies.
The statement said Motorola and Pantech would work together to develop CDMA digital cellular telephones for the Korean
market and elsewhere and that this reflected Motorola's intention to build on existing regional strengths in Asia.
Pantech currently makes radio-paging receivers and personal communications service (PCS) handsets and supplies PCS
handsets to LG TeleCom Ltd on an OEM basis, Park said.
Park said Pantech and Motorola would continue talks on a possible additional cash investment and that he expected the third
deal to materialise within this year at the earliest.
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Alcatel and Samsung Telecommunications Offer Fully-Integrated IS-634
Architecture for Wireless Communications Networks
DALLAS and RALEIGH, N.C.--(BUSINESS WIRE)--May 19, 1998--Alcatel and Samsung Telecommunications today
announced the completion of joint integration testing of their cdmaOne (tm) IS-634 wireless network system, now ready for
immediate delivery. The system features Samsung's PicoBTS (tm) base transceiver station and base station controller (BSC)
fully integrated with the Alcatel 1000 S12 mobile switching center (MSC) via the industry-standard IS-634 open radio-switch
interface.
This newly-introduced system provides wireless service operators with an integrated solution based on an open architecture and
the use of industry standards at key interfaces. Instead of being locked in to proprietary switch-based interfaces, this new
architecture gives carriers the flexibility to ''mix and match'' the network elements that best suit their needs.
''We believe in giving carriers the freedom to choose the infrastructure components that best suit their networks, and not
locking them into proprietary systems,'' said John Kavulich, manager of CDMA products for the Wireless Systems division of
Samsung Telecommunications. ''Samsung now offers a total systems solution with a winning combination of performance and
price for operators who need deployment flexibility.''
''Alcatel has put another piece of its emerging PCS (personal communications services) strategy in place by completing this
joint integration testing,'' said Dwayne Ballew, VP/GM of switching products for Alcatel. ''Wireless service providers have
been held hostage by their infrastructure system supplier because of the proprietary interface between the radio and switching
components of the system. Incorporating another manufacturer's radio components because of improved price or performance
was not an option unless the operators were prepared to swap out the entire network. Now, if they use our switch, they can
'mix and match' their radio components, based purely on technical and business considerations.''
Other components of Samsung's integrated wireless system include all of the network elements required for PCS operators,
including indoor and outdoor Base Transceiver Stations (BTS), Base Station Controllers (BSC), Base Station Management
System (BSM), and a full range of CDMA subscriber handsets.
Since announcing the availability of its IS-634- and CDMA-based mobile switching product at the PCS '97 conference in
Dallas, Alcatel has been lining up CDMA base station subsystem (BSS) suppliers as potential customers for its new product.
Samsung now joins this group of BSS suppliers embracing the open IS-634 interface and committing to use the Alcatel MSC in
its wireless systems solutions.
The Alcatel MSC incorporating IS-634 is based on the Alcatel 1000 S12 digital switching platform, which already provides
switching functionality for more than 170 million trunk and subscriber lines around the world. Alcatel has the largest installed
switching base of any telecommunications equipment supplier. (Alcatel Press Release Reference 98-20)
Alcatel designs, manufactures, and markets complete telecommunications systems. Activities include fixed switching networks,
transmission systems, access systems, mobile communications infrastructure, business networking, submarine cable networks,
as well as radio communications, space, and defense systems. With operations in over 130 countries, Alcatel is a leading-edge
supplier in the majority of its business. In 1997, the Telecom segment of Alcatel Alsthom [NYSE:ALA - news] registered total
sales of $14.2 billion (FF 82.9 billion). For more information, visit Alcatel via the web at: www.alcatel.com or
www.ans.alcatel.com (U.S. site).
Samsung Telecommunications America, a Dallas-based subsidiary of Samsung Electronics Company, researches, develops and
markets telecommunications and data communications systems and products throughout North America. STA has five main
business groups: Wireless Systems, Wireless Terminals, Networks, Business Communications, and Office Automation.
Samsung Electronics Company, Ltd., a $19 billion flagship company of the Samsung Group, is a worldwide producer of
telecommunications systems, consumer appliances, A/V equipment, computers, printers, and semiconductors. The Samsung
Group is the 14th largest company in the world, with revenues in excess of $93 billion.
Contact for Alcatel Alsthom Investor Relations (Paris): Charlotte Laurent-Ottomane, (33.1) 40 76 13 30 or
ottomane@ahqps.alcatel.fr (Fax): (33.1) 40 76 14 05.
UK media contact: Barrington Lloyd International, tel. +44 (0) 1799 506 187 or barry.lloyd@bli.co.uk
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