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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: DaveMG who wrote (25032)	3/25/1999 2:17:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

March 25, 1999 Dow Jones Newswires Qualcomm, Ericsson Say Deals Will Help Industry Dow Jones Newswires NEW YORK -- Qualcomm Inc.'s (QCOM) and L.M. Ericsson Telephone Co.'s (ERICY) agreement to end litigation over wireless phone technology removes any uncertainty about the transition to a new generation of wireless phones, executives said during a conference call Thursday. Earlier, Qualcomm and Ericsson said they will jointly support a single world standard for Code Division Multiple Access, or CDMA, technology, which is the second most widely used wireless phone technology but is expected to be the leading standard for future wireless phones. Qualcomm developed the CDMA technology. Ericsson sued Qualcomm in 1996, alleging that Qualcomm's CDMA technology violated Ericsson's patents. In addition, Ericsson plans to purchase Qualcomm's terrestrial CDMA wireless infrastructure business for an undisclosed amount. This business has been a money-loser for Qualcomm, which is based in San Diego. The companies also plan to cross certain technologies to each other. The companies didn't provide any financial details during the conference call. Ericsson's relationships with wireless carriers will enable it to expand Qualcomm's infrastructure business, Qualcomm Chief Executive Irwin Jacobs said during the call. Ericsson, of Sweden, next year plans to ship wireless phones that support Qualcomm's latest CDMA technology, or cdmaOne, in North America, Chief Executive Sven-Christer Nilsson said during the call. Qualcomm continues to have "earnings growth prospects" from its CDMA royalties, phone handset business, its application-specific integrated circuit, or ASIC, business, and its Omnitracs and Globalstar products, Jacobs said. In early afternoon Nasdaq trading, Ericsson's American depository receipts were up 2 1/16, or 9.8%, at 23 1/8 on volume of 12.4 million, compared with average daily volume of 4.3 million. Qualcomm was up 7 13/16, or 8.9%, at 95 3/16 on volume of 6.2 million shares, compared with average daily volume of 1.85 million. - Maria V. Georgianis; (201) 938-5244; maria.georgianis@cor.dowjones.com