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To: tero kuittinen who wrote (13234)	8/3/1998 10:53:00 AM
From: Sawtooth	Read Replies (1) \| Respond to of 152472

All: In the interest in knowing what the competition is doing. Yes, there is a bell (seven different tones) and there is a whistle (five different pitches). ; ) New Nokia 5190 digital phone features the industry's first NaviKey(tm) for easy use and user-changeable Xpress-On(tm) color covers IRVING, Texas--(BUSINESS WIRE)--Aug. 3, 1998--Nokia today introduced the Nokia 5190, an affordable GSM 1900 digital PCS handset targeted for consumers who want digital phones that are easy to use. The phone features the new Nokia NaviKey(tm), which provides easy access to all its functions, such as short messaging, saving names and numbers, selecting new ringing tones - all with the touch of a single key. The Nokia 5190 also introduces another first: the uniquely fashionable Xpress-On(tm) color covers, which allow users to quickly snap on and snap off a variety of colored faceplates in a matter of seconds, without using tools. An industry leader in the use of color and design in mobile phones, Nokia closely monitors trends and style in the fashion industry. As a result, Nokia mobile phones are known not only as sophisticated communications devices, but as fashionable personal accessories as well. Nokia offers additional covers for the Nokia 5190 in five vibrant colors, including Tango Orange, Antigua Red, Gecko Green, Bermuda Blue and Dolphin Silver. In addition, customers will be able to express themselves with hundreds of highly personalized color covers offered by Nokia-approved companies. Nokia 5190 features include: -- Industry-leading battery times - from 8 days to 2 weeks standby or 3 to 5 hours talk time -- Nokia NaviKey(tm) is an easy-to-learn, one-button navigation for the phone for easy one-handed use -- Phone directory that stores 255 names and numbers (SIM dependent) -- Clock, alarm clock and three entertaining games -- 35 musical ringing tones, including popular song melodies -- Supports multiple languages -- Supported by a full line of Nokia Genuine Accessories for the home, office and automobile including new Xpress-On covers More than just a fashionable phone, the Nokia 5190 series also packs features that people want into its sleek styling, including an alarm clock, three standard electronic games and a battery offering more than a week of stand-by time without needing a charge. Additional phone enhancements allow for "personalization" features including a selection from more than 35 ringing tones with melody lines from popular songs, a directory that stores up to 255 names and numbers and three language options (English, French, and Spanish). "The Nokia 5190 will appeal especially to people who seek both functionality and fashion in their phones," said Rich Geruson, senior vice president, USA Sales & Marketing, Nokia Mobile Phones. "We have really listened to customers with this design, incorporating their desire to have phones that are easier to use. We believe the NaviKey is to the mobile phone what the mouse is to computers. "The Nokia 5190 has several leading-edge features that consumers have asked for in wireless phones. The 5190 is not only loaded with features, it includes a simple way to access them so that consumers enjoy the full benefits of their digital phones. The NaviKey makes the phone very intuitive. It's as simple as deciding yes or no to simple prompts -- the phone instinctively knows what you want to do. The Xpress-On covers offer a chance to express individuality with colors for all occasions," Geruson added. Small and lightweight, the new Nokia 5190 offers impressive performance and features a large, high-resolution, illuminated screen, which allows for large easy-to-read letters. With an extended lithium-ion battery, the phones weigh only 4.8 ounces. Other batteries available include an extended or vibrating nickel-metal-hydride battery or ultra-extended lithium-ion battery. The user interface is easily accessible with the Nokia NaviKey(tm), an innovation already popular in Europe. The Nokia 5190 has a full range of Original Nokia Accessories available for home, office and automobile, including a hearing aid adapter, vibrating battery, headset, belt clip, car kit and color covers.

To: tero kuittinen who wrote (13234)	8/3/1998 11:33:00 AM
From: Gregg Powers	Read Replies (1) \| Respond to of 152472

Tero: You seem to be mixing lots of metaphors and resorting to really untoward hyperbole here. Qualcomm remains capacity constrained and the CDMA subscribers numbers out of Sprint, PrimeCo, Airtouch (and the rest of the domestic CDMA crowd) are accelerating fairly dramatically. Moreover, your declaration of "victory" in China seems to be strikingly premature, particularly since you seen to be thinking in two year increments. From QC's perspective, the next two years while easily be driven by CDMA's success is dozens of countries around the world (including China). While Nokia does seem to be on a roll today, you seem to be awfully sanguine about a future that involves a fairly material technology transition. For example, look at the devastation at Motorola, due in no little part, to its failure to replace its collapsing analog phone revenues with digital products. Both Ericsson and Nokia will have to face an air-interface transition which may result in collapsing prices, revenue and profits for their core TDMA-based GSM businesses. That's really the bottom line to the current "war" between QC and Ericsson. Strong current results will mean little if Wall Street becomes fixated on a technology transition circa 2001. Moreover, you continue to labor under the belief that this is a winner-take-all situation; where GSM success means oblivion for IS-95 and vice-versa. Such strikes me as very short-sighted. CDMA is looking increasingly dominant in North America and is gaining share in South America and Asia. Japan, today, is a larger cellular market than China and while I do see a Japanese CDMA deployment, I do not see any GSM. Moreover, you seem not to calibrate the economic deltas given Qualcomm's size relative to its markets versus ERICY/NOK's. Let me expand. Right now, Ericsson and Nokia's combined stock market equity value is roughly $90 billion. Qualcomm's equity value is just $4.2 billion. Given that differential, ERICY/NOK had BETTER be winning lots of business in China (and elsewhere) or you would be in very, very dire trouble. In contrast, QC's profit opportunity in the America's, Asia and Australia strikes me as substantially superior when considered vis-a-vis its market capitalization. QC enjoys a royalty on all mobile CDMA infrastructure and handset sales AND this royalty is will expand as CDMA grows in general and accelerate as GSM moves to a CDMA-based air-interface in particular. So, while Nokia and Ericsson face a dogfight for marketshare coupled with a technology transition, Qualcomm is positioned to enjoy expanded worldwide marketshare for its core technology, a rapidly-accelerated royalty stream and a broadened marketplace for its handsets and infrastructure. Nokia is a fine company..but the valuation differential between just two of the GSM players and QC suggests strongly to me that the latter may prove to be the superior investment over the next three-to-five years. Best regards, Gregg