Engineer, Clark, Walt, Interesting press release from ISCO. Good for CDMA and QCOM if claims are true. Are you familiar with this technology? Can it be equally applied to GSM/TDMA?
Illinois Superconductor Announces Dramatic Results from
CDMA Installation
Anticipate Increased Revenues to Result
MOUNT PROSPECT, Ill., May 20 /PRNewswire/ -- Illinois Superconductor Corporation
(Nasdaq: ISCO - news), a leading supplier of superconducting technology for the wireless
telecommunications industry, today announced dramatic range extension and performance
improvements resulting from the installation of ISC's SpectrumMaster® Classic filter in a Code
Division Multiple Access (CDMA) commercial cell site in the United States. The high performance
filter test was undertaken by a major cellular operator, which has elected to purchase the test unit at
the conclusion of the trial. The operator is conducting additional testing which may lead to the
widespread deployment of ISC's technology throughout its CDMA system.
In the evaluation, the SpectrumMaster® Classic filter was installed in a rural site along a major
interstate highway. Documented results showed that the SpectrumMaster® Classic dramatically
expanded the cell site' coverage by 25%. Further analysis shows that the SpectrumMaster® Classic
could extend coverage by up to 125%, however the test was limited by the proximity of other cell
sites which handled calls that might otherwise have been carried by the original site. This suggests
that cell sites could be significantly farther apart, saving capital and maintenance expense associated
with construction of unnecessary sites.
Other documented benefits of the test included decreased dropped and blocked calls, and
significantly lower handset transmit power (3-5dB), which can increase cell capacity and extend cell
phone talk time.
The SpectrumMaster® Classic is ISC's award winning filter system which provides 100 times
better filtering than any other commercially available filter system on the market today.
''This CDMA installation demonstrates the clear and substantial benefits to be gained by the use of
our high performance products,'' commented Ted Laves, president and CEO of Illinois
Superconductor. ''A 25% increase in cell site range and a dramatic reduction in handset transmit
power levels should significantly increase cell site revenues for CDMA operators. Based upon these
results, we believe that our filters can provide payback in less than two months after installation,
which is certainly a cost effective investment for our customers. We are especially pleased that our
SpectrumMaster® Classic is ideally suited for deployment in CDMA systems because there
currently appears to be no other product offering of this type.''
CDMA digital deployment is exploding as many wireless operators convert their analog networks to
digital. Worldwide CDMA customers number almost 30 million, while the North American market
grew more than 400% last year to nearly 9 million customers. This market growth translates to
intense competitive pressure for operators to upgrade their networks to provide higher quality
service at lower prices.
Laves continued, ''With nearly 60,000 cell sites throughout the United States, many of which are
implementing CDMA technology, ISC is well suited to assist operators in cost effectively
implementing this important new technology. We expect that growing CDMA sales will fuel ISC's
revenue growth in 1999.''
Illinois Superconductor Corporation is a leader in the commercialization of high temperature
superconducting technology for the wireless telecommunications industry. The Company develops,
manufactures, and markets radio frequency (RF) products to enhance the quality and capacity of
cellular telephone, personal communications services, and other wireless telecommunications
services. With more than 30 different configurations, ISC is well equipped to satisfy the demanding
and ever changing technological requirements of both rural and urban applications of carriers
nationwide. The benefits of the ISC products have been clearly documented by a number of
customers including: increased coverage (as much as 70%), increased revenues per cell site (as
much as 18% based on minutes per use), easier location of new cell sites due to facilitation of
colocation, overall improved voice quality, and dramatic reduction in dropped calls (up to 40%).
More information about Illinois Superconductor Corporation is available on the Company's internet
web site at ilsc.com.
Statements contained in this news release that are not historical facts are forward-looking
statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and reflect the Company's current expectations
regarding the future results of operations, performance and achievements of the Company. The
Company has tried, whenever possible, to identify these forward-looking statements by using words
such as ''anticipates,'' ''believes,'' ''estimates,'' ''expects,'' ''plans,'' ''intends'' and similar
expressions. These statements reflect the Company's current beliefs and are based on information
currently available to it. Accordingly, these statements are subject to certain risks, uncertainties, and
contingencies which could cause the Company's actual results, performance or achievements for
1999 and beyond to differ materially from those expressed in, or implied by, such statements. These
important factors include, without limitation, the Company's ability to obtain additional financing in
the near future; the Company's history of net losses and the lack of assurance that the Company's
earnings will be sufficient to cover fixed charges in the future; the degree to which the Company is
leveraged and restrictions imposed on the Company under its existing debt instruments which may
adversely affect the Company's ability to finance its future operations, to compete effectively against
better capitalized competitors and to withstand downturns in its business or the economy generally;
the Company's current inability to satisfy the minimum maintenance requirements for the continued
listing of its shares of common stock for trading on the Nasdaq National Market, which may have a
material adverse effect on the liquidity of the Company's common stock and the Company's ability
to obtain additional funding as needed if such shares are delisted; continued downward pressure on
the prices charged for the Company's products due to competition of rival manufacturers of filters
for the wireless telecommunications market; the timing and receipt of customer orders; the
Company's ability to attract and retain key personnel; and the effects of legal proceedings. A more
complete description of these risks, uncertainties and assumptions are included in the Company's
filings with the Securities and Exchange Commission, including those described under the heading
''Risk Factors'' in the Company's Annual Report on Form 10-K for the year ended December 31,
1998. The Company undertakes no obligation to update or revise these forward-looking statements
to reflect new events or uncertainties.
SOURCE: Illinois Superconductor Corporation
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