Thursday June 1, 4:00 pm Eastern Time
Company Press Release
InterDigital CEO Emphasized Company's
Commitment to 3G at Annual Meeting
Shareholders Elect Two Board Members
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--June 1, 2000--InterDigital Communications Corporation
(Nasdaq:IDCC - news) announced at its annual meeting of shareholders today that shareholders have approved the
election of D. Ridgely Bolgiano and Mark Gercenstein as directors of the Company.
Shareholders also ratified the selection of Arthur Andersen LLP as independent accountants for the year ending December
31, 2000 and approved the adoption of the InterDigital's 2000 Stock Award and Incentive Plan. With approximately 90%
of the outstanding shares represented at the meeting, more that 95% of the shares voted were in favor of each of the
proposals.
InterDigital's Chairman of the Board, Harry Campagna, opened the official meeting. He introduced Mark Gercenstein, the
Company's recently appointed Chief Executive Officer, saying, ``I made a commitment to our shareholders that the Board
would search for and select a new CEO. We wanted a leader with deep roots in telecommunications, a track record of
success and the chemistry and drive that would fit well with our team, we found just such a man in Mark Gercenstein.''
Mr. Gercenstein, CEO, commented, ``Over the past year, our team has successfully transitioned InterDigital from a focus
on the development and production of wireless local loop systems to the development of technology for the 3G market.
That focus, along with our participation in worldwide standards activities, has allowed us to attract our first 3G customer,
Nokia. We are making excellent progress in developing high data-rate technology for Nokia that we expect to play an
important role in advanced wireless products.''
``Our work in the standards bodies is a critical element of our strategy,'' continued Mr. Gercenstein. ``As we indicated in
November, we have determined that we have technology, patents and patents pending that will be essential to the
implementation of all modes of the 3G standard. We plan to add resources to our standards team as we continue to
enhance our presence in the standards bodies worldwide.
``Our patent portfolio is a key asset. In 1999, we were granted 44 new patents worldwide, primarily for CDMA
inventions and we have been granted another 11 so far in 2000. Since January 1, 2000, we have also filed 25 new patent
applications. We have signed 6 new licensing agreements during the past year and will be increasing our investment in our
licensing program.
``Financially, InterDigital is sound, with approximately $100 million in cash and short-term investments and a growing
stream of recurring revenues from our licensing partners. Excluding the expected adjustment for SAB 101 that we will
book in the second quarter, I anticipate reporting a third straight year of profitability and positive cash flow in 2000.
``InterDigital is focused on meeting its technology development milestones. As part of that focus, we are hiring
aggressively. Year-to-date, we have increased our engineering team by about 25% and will strive to reach 75% growth
for the year. We are doing this because we plan to have system-on-a-chip design solutions in 2001. In the coming months,
we will finalize our long-term business strategy and expect to communicate that strategy to our important constituents in the
fourth quarter 2000. We will further introduce key business processes to create a platform for growth into the future.''
In summary, Mr. Gercenstein concluded, ``the goals we have established for 2000 and beyond reflect our commitment to
build substantial long-term value for InterDigital's shareholders, employees, customers and partners.''
InterDigital is creating innovative solutions for mainstream wireless applications which deliver cost and time-to-market
advantages for its customers. By leveraging its technology and intellectual property into third generation standards and
products, it is maximizing its long-term revenue and earnings opportunities.
The Company has a strong portfolio of patented TDMA and CDMA inventions which it licenses worldwide. For more
information, please visit InterDigital's web site: www.interdigital.com. InterDigital© is a trademark of the Company.
This press release contains forward-looking statements regarding InterDigital's current beliefs and expectations as to our
role in advanced wireless products, the essential nature of our patents to the implementation of the 3G standard,
profitability and cash flow in 2000, and the timing and ability to have system on a chip solutions. 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 3G development costs, difficulties or delays related to technology or
product development; whether the 3G standard is changed in a manner that adversely affects the applicability of our
patents to the standard; failure to successfully execute on our long-term strategy; failure to successfully negotiate patent
licensing agreements; the continuation of our development project with Nokia; a slowdown or shifting of the 3G market
emergence and actual licensee reporting on product sales.
InterDigital undertakes no duty to publicly update any forward looking statements, whether as a result of new information,
future events or otherwise.
Contact:
InterDigital Communications Corporation
Media Contact:
Susan Sutton, 610/878-7800
e-mail: susan.sutton@interdigital.com
or
Investor Contact:
Janet Point, 610/878-7800
e-mail: janet.point@interdigital.com
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