To: Keith Feral who wrote (110713 ) 1/11/2002 9:01:06 AM From: JohnG Respond to of 152472 Nextel, Qualcomm and Motorola to Expand Direct Connect Services to 3G CDMA Networks Worldwide date: January 10, 2002 Nextel Communications, Qualcomm, and Motorola today announced plans to develop a Direct Connect product for global wireless network operators using third-generation CDMA platforms. Nextel has signed an agreement with Qualcomm that complements and builds upon Nextel's existing and continuing agreements with Motorola. Specifically, Nextel and Qualcomm have entered into a licensing agreement for the further development and deployment of Qualcomm's QChat software. Motorola will integrate the overall infrastructure solution for use in 3G CDMA networks and will develop specific enhancements to CDMA2000 to ensure the fast call set up, mobility management and iDEN interoperability necessary for Nextel's Direct Connect service. Subject to a definitive agreement, Motorola will have marketing rights for the enhanced Direct Connect product outside the United States. Tim Donahue, president and CEO of Nextel. said, "In the short term, we will continue to work with Motorola on our recently announced enhanced iDEN vocoder solution, and we look forward to extending our relationship with Motorola. When we make our 3G choice, Motorola will receive a minimum of fifty percent of our infrastructure and handset business." "This agreement combines Qualcomm's innovative software application, QChat, with Nextel's strong track record of offering unique services, such as Direct Connect," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "Qualcomm's CDMA QChat software combined with Motorola's infrastructure will enable the creation of a global community of Direct Connect users. For instance, a Direct Connect customer in Boston will be able to instantly communicate with a Direct Connect customer in Beijing." These agreements, which grant Nextel certain exclusive license rights in North America and several other international markets, are expected to enable Direct Connect push-to-talk functionality over wireless CDMA networks using a voice-over-IP architecture. The architecture will be designed to enable subscribers worldwide to talk with each other at the push of a button.