KYOCERA'S ACQUISITION OF THE TERRESTRIAL-BASED PHONE DIVISION OF QUALCOMM
The Telecommunications Technology Company which Developed CDMA Technology, and Establishment of a Subsidiary in the United States
(This document was translated from the Japanese press release.)
Kyocera Corporation (President: Yasuo Nishiguchi) has reached agreement with Qualcomm Incorporated, one of the largest digital communications technology companies in the United States, for the acquisition by Kyocera International, Inc., a wholly owned subsidiary of Kyocera Corporation having its headquarters in California, U.S.A., of the terrestrial-based phones division of Qualcomm, with the goal of closing around the end of February 2000. Accordingly, an agreement was executed at a signing attended by Mr. Nishiguchi, President of Kyocera Corporation and Mr. Jacobs, Chairman and CEO of Qualcomm at 12:30 p.m. on December 22, 1999, U.S. local time (5:30 a.m. on December 23, 1999, Japan time).
In connection with this acquisition, Kyocera International, Inc. will establish a subsidiary which will succeed to the business of the terrestrial-based phones division of Qualcomm, and such business will be conducted through this subsidiary.
As a result of the acquisition, Kyocera Group will be in a position to establish a system with the world's highest quality, covering all aspects of development, design, sales and marketing and after sales service in the growing business segment of CDMA portable phones. Kyocera Group will consequently possess bases in the United States, in addition to Japan and Korea, where we already operate CDMA phone business. We have also developed a corporate structure capable of providing portable communications phones to CDMA carriers all over the world. In the next fiscal year, Kyocera Group is currently aiming to record sales of more than 15,000,000 portable communications phones in aggregate, including those using CDMA technology.
- Acquired Businesses
Kyocera will acquire the business of development, design, manufacturing, sales and marketing and after sales service of CDMA portable communications phones of Qualcomm Incorporated.
Scheduled to take place around the end of February 2000 (upon completion of procedures required by law.)
- Acquisition price
Not made public in accordance with the agreement of the parties.
- New subsidiary
Name, location, president and capital amount, etc. are not yet determined.
Outline of Qualcomm Incorporated
- Location of headquarters
San Diego, California, U.S.A.
*CDMA phones; Integrated CDMA chipsets and system software * Technology licensing; Eudora ® email software for Windows ® and Macintosh ® computing platforms * Satellite-based system including OmniTRACS ® and portions of the Globalstar ™ system.
- Business basis
14 countries throughout the world, including the U.S.A.
- Annual sales
U.S.$3.9 billion (for the fiscal year ended September 1999)
- Year of incorporation
- Chairman and CEO
Dr. Irwin M. Jacobs
- President and COO
Mr. Richard Sulpizio
Note to Editors: Kyocera Electronics (UK) Limited is part of the Kyocera Corporation, the world's leading developer and manufacturer of fine ceramic and associated products. Founded in 1959, Kyocera employs almost 40,000 people world-wide and turnover in the financial year 1998/89 was $6.1 billion. It is the major shareholder in DDI, Japan's first private telecommunications company, and Nippon Iridium Limited, a company developing a satellite system to permit telephone communication between any two points on earth. Renowned for its technical innovation, Kyocera has pioneered cartridge-free printing that reduces both consumables cost and waste.
Information about Kyocera Electronics (UK) Ltd can be accessed via NEWSdesk at (www.newsdesk.com) or Kyocera's web site at (www.kyocera.co.uk).
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