ITU'S IMT-2000 Standard Represents Significant
Opportunity for InterDigital
InterDigital Believes it Holds Essential Technology
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nov. 18, 1999-- InterDigital Communications Corporation (ASE: IDC -
news) believes that the ITU's IMT-2000 standard opens up the market for InterDigital to become a key player in the
implementation of the standard worldwide.
Howard Goldberg, Interim President, said, ''The development of 3G wireless technologies is the mainstay of our business and
is where much of our expertise has been directed.
''We believe that we have technology, patents and patents pending that will be essential to the implementation of all modes of
the standard. We are extremely well positioned as a developer of creative and valuable technology content for 3G wireless
products.''
InterDigital has participated actively in the 3G standards development process, contributing a significant number of proposed
concepts and methodologies to the standards bodies in Europe and the United States. A number of InterDigital's contributions
have been adopted and are now part of the standard to be implemented worldwide.
The IMT-2000 standard, also referred to as the third generation (3G) wireless standard, defines five sets of alternative
specifications for the digital mobile radios which can be selected or aggregated by equipment manufacturers to produce
standards-compliant third generation wireless products for their customers.
Products built to one or more of these specifications will deliver a varying range of high bandwidth wireless services, including
high speed Internet access, multimedia communications, video conferencing, and other forms of data transmission.
Currently, 3G products are expected to have an initial roll-out in Japan in 2001, and then full scale commercial deployment
approximately two to three years later in Europe.
InterDigital's work in developing TDMA and CDMA technologies is based upon a heritage of invention and content
contribution stretching over more than 20 years. It results in a strong core competency directed at the 3G specifications
expected to dominate the market.
Mr. Goldberg added, ''As we execute our 3G strategic plan, we will offer this expertise and technology content - through
engineering development services, system on a chip capabilities and software component sales - to equipment producers
worldwide.''
At the beginning of this year, InterDigital began a multi-year development program for Nokia to develop high bandwidth
CDMA technology for 3G products. InterDigital owns and has the right to license the developed technology and inventions.
As part of its business strategy, InterDigital plans to market either directly or through content based partnerships, ASICs with
3G FDD capabilities. InterDigital also plans to market other products including ASICs with added TDD capabilities.
In 1999, InterDigital completed the development of its second-generation B-CDMA(TM) ASIC, a system on a chip that
contains the core elements of the wideband CDMA technology that InterDigital will utilize in its 3G FDD (wideband CDMA)
technology development program. The ASIC has been fabricated and has performed successfully in extensive testing.
The Company is currently designing its next generation wideband CDMA ASIC, which will be fully compliant with the 3G
specification. InterDigital expects to have the ASIC available in time to support the full scale commercial roll-out of 3G
systems.
''Our goal is to grow as a provider of innovative technology for advanced wireless communications products. We will pursue
that goal by developing and marketing technology content, embedding developed technology in hardware and software
components (including ASICs), and by licensing our patented inventions to equipment producers for the 3G market. We
believe we can generate very attractive future growth by pursuing this strategy. We are excited by the business opportunities
which we see before us and are working to execute our business plan and deliver the growth we are seeking,'' Mr. Goldberg
said.
InterDigital's expertise in CDMA technology is very broad, with inventions claimed in areas such as system design, power
control, multi-user detection, joint detection, interference cancellation, system overlay, RAKE receivers, diversity combining,
spreading codes, multicode transmission, turbo codes, soft handover, and reverse pilot and reverse coherent detection, among
others.
These inventions are covered by patents and applications filed worldwide. InterDigital holds more than 800 patents and patent
applications in more than 50 countries covering TDMA and CDMA inventions.
This press release contains forward looking statements regarding InterDigital's current beliefs and expectations as to its strategic
objectives, usefulness of the Company's technology and patents in the 3G wireless standards, anticipated deployment of 3G
products, future growth opportunities, usefulness of B-CDMA(TM) technology in the Company's 3G FDD technology
development project, availability of its next generation ASIC and ability to deliver the third generation products.
Such statements are subject to risks and uncertainties.
Actual outcomes could differ materially from those expressed in any such forward looking statement due to a variety of factors
including, but not limited to: unanticipated development costs, technical difficulties or delays in engineering efforts, production,
testing or commercialization and marketing of InterDigital's products or technologies; failure to successfully negotiate patent
licensing agreements or adequate strategic relationships; failure to obtain or maintain patents relevant to the 3G standards; the
availability of competitive technology or products superior on a perceived, relative or actual basis with InterDigital's technology
or products; inability to hire or retain adequate personnel; failure of licensees to meet expectations and commitments and
Nokia's exercise of its rights to terminate the development project for convenience; and failure of the 3G market to materialize
in the manner or timeframe anticipated.
InterDigital undertakes no duty to publicly update any forward looking statements, whether as a result of new information,
future events or otherwise.
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