ILLINOIS SUPERCONDUCTOR ANNOUNCES 70% CAPACITY IMPROVEMENT FOR CDMA SYSTEMS
ADDRESSES PRESSING OPERATOR NEEDS AS CELLULAR DEMANDS SOAR
MOUNT PROSPECT, Ill., May 27, 1999 /PRNewswire via COMTEX/ --
Illinois Superconductor Corporation (Nasdaq: ISCO), a leading supplier
of superconducting technology for the wireless telecommunications
industry, today announced that it had achieved unprecedented
improvements in Code Division Multiple Access (CDMA) capacity during
testing on a densely populated urban commercial cell sitein the United
States. After installing ISC's industry-leading SpectrumMaster(R)
Classic filter, a major operator saw cell site capacity increase from
16 to27 simultaneous users per radio, which represents a 70% increase
in capacity. These capacity improvements are believed to result from
SpectrumMaster(R) Classic's superior filtering, which minimizes
interfering signals, reduces out-of-band noise, and typically lowers
subscriber handset power by 4dB. Further analysis of the test data
indicates that under certain circumstances, the SpectrumMaster(R)
Classic could increase capacity by as much as 100%. Increased capacity
provides operators with the ability to handle rapidly growing cellular
traffic while significantly reducing capital expenditures.
Commented Ted Laves, president and CEO of Illinois Superconductor,
"Weare ecstatic at these phenomenal results. CDMA operators are
struggling withthe need to handle exploding demand for cellular service
within limited capital budgets. We have a solution for these operators
and are optimistic that these documented test results will lead to a
significant increase in demand forour award-winning products. The
capacity benefits demonstrated in this testare in addition to the up to
125% improvement in CDMA range produced by the SpectrumMaster(R)
Classic that ISC announced last week."
CDMA is one of the world's most advanced digital cellular technologies
and provides expanded capacity, superior voice quality and such
advanced features as caller identification, voice messaging and data
transmission. Demand for CDMA networks grew by more than 400% in the
last year, reaching 9 million subscribers in the United States and
almost 30 million worldwide. Leading operators in the United States
have implemented CDMA at both cellular and PCS frequencies. CDMA
networks are also deployed in Japan, Korea, Latin America, China and
elsewhere internationally. CDMA is also expected to be the primary
radio technology for the Third Generation (3G) cellular networks that
are currently being planned for deployment in Japan and Europe.
ISC believes that a 70% improvement in capacity for CDMA networks
provides two major benefits to cellular and PCS CDMA operators. The
improvement in capacity will increase potential revenues per cell site,
by allowing operators to provide more enhanced services to more of
their customers. In addition, the increase in capacity will also
decrease operators' capital expenditures by allowing them to minimize
capital investments for significantly more expensive additional radio
equipment or new cell sites, as customer demand increases. The company
calculates that the payback from installing SpectrumMaster(R) filters
for a typical operator could be as little as 15 days.
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 (PCS) 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 which have been clearly documented by a number of
customers include: 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 tolerance of interference,
improved voice quality, and reduced 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 thewireless 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 fiscal 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
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: Monique Showalter, of Illinois Superconductor,
847-391-9426
WEB PAGE: ilsc.com
GEOGRAPHY: Illinois
Indiana
INDUSTRY CODE: TLS
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