China Unicom Foster CDMA Wireless Adoption in China

QUALCOMM Incorporated and China Unicom announced that they have established a joint venture -- Unicom-BREW Wireless Technologies Ltd. -- to foster the development of BREW-based CDMA wireless data applications and allow China's CDMA subscribers to experience outstanding leading-edge data services enabled by QUALCOMM's Binary Runtime Environment for Wireless(TM) (BREW) platform. Yang Xianzu, chairman of China Unicom, and Wang Jianzhou, president of China Unicom, were joined today by Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM, as the trio presided over the founding ceremony of the joint venture. A range of BREW-enabled CDMA2000 1X handsets with new applications were presented by local and global CDMA handset manufacturers and application developers.

Unicom-BREW's ownership is evenly split between the two companies. Specific investment numbers were not disclosed, but executives confirmed that the joint venture has an initial investment of tens of millions of RMB (US$1 = 8.28 RMB). China Unicom vice president Lu Jianguo has been appointed chairman of the board for the venture, with Jing Wang, senior vice president of international strategic and regulatory affairs, QUALCOMM, appointed as vice chairman.

China Unicom has selected QUALCOMM's BREW solution in order to provide its customers with over-the-air downloadable games, position location, specialty business applications and more.

"The new joint venture is the next step in the successful cooperation that we have had with QUALCOMM, which is symbolized by the great progress we have made in promoting CDMA2000 1X data services," said Xianzu. "The BREW platform is the most successful wireless data service platform. With the outstanding value-added services enabled by BREW, CDMA subscribers in China will now be able to experience the brilliance of the CDMA network. This will be an important step for China Unicom to create competitive advantage by differentiation."

"We are very excited to establish this joint venture with China Unicom. Working closely together, we intend to greatly expand the number of CDMA developers in China who contribute to and CDMA users who enjoy the world's leading mobile applications," said Dr. Jacobs. "The creation of Unicom-BREW Wireless Technologies Ltd. is part of our long term support of the Chinese mobile industry."

Unicom-BREW Wireless Technologies Ltd. will offer BREW training and technical support. The new company will also train local developers, establish a BREW developer lab, create a phone support center for developers, provide testing services for applications, as well as promote the BREW solution and conduct university outreach programs.

QUALCOMM's BREW platform is part of a complete, end-to-end solution for wireless applications development, device configuration, application distribution, and billing and payment. Carriers' BREW-based services will enable consumers to customize their handsets by downloading applications over the air from a carrier's application download server. Differentiation advantage brought by the BREW solution attracts many carriers. Deployments of the BREW solution continue as carriers throughout the world join China Unicom, KTF of South Korea, KDDI of Japan, and Verizon Wireless and ALLTEL of the United States in commercializing BREW-based services. Brasilcel, a joint venture between Spain's Telefonica Moviles and Portugal Telecom, plans to roll out BREW services to subscribers in Latin America in March 2003 and U.S. Cellular has launched a BREW user trial. More than 40 BREW-enabled handset models are already available to consumers worldwide and more than 40 device manufacturers have indicated their interest in the BREW platform.

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