Qualcomm completes the sale of Vesper and Vesper Sao Paulo to Embratel Participações

December 3, 2003

2 Min Read

SAN DIEGO -- QUALCOMM Incorporated(Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access(CDMA) digital wireless technology, today announced the closing of the transaction in which Embratel Participacoes S.A. acquired from QUALCOMM its indirect controlled operating subsidiaries, Vesper S.A and Vesper Sao Paulo S.A. (Vesper), together with their immediate holding companies Vesper Holding S.A. and Vesper Holding Sao Paulo S.A. As part of this transaction, QUALCOMM has retained, through a newly formed indirect controlled subsidiary (TowerCo), ownership and control of Vesper's existing 622 communication towers and related interests in tower site property leases.

Concurrent with the closing of the transaction, Vesper and TowerCo entered into a 10-year agreement (renewable at Vesper's option for up to two successive five year terms) whereby Vesper will pay a monthly fee for use of aerial and ground space on the tower sites. QUALCOMM expects that TowerCo's extensive network of tower sites will be attractive to other parties who are interested in gaining access to these sites via similar usage rights arrangements -- particularly in the key markets of Sao Paulo and Rio de Janeiro where operators' ability to secure and build new tower sites is often challenging. Under the tower usage arrangement, QUALCOMM preserves the ability, and plans, to sell some or all of its interest in TowerCo and/or the tower sites directly (with assignment of the associated rights under the usage rights agreement).

"This transaction is a positive strategic move for all parties involved," said Anthony S. Thornley, president and COO of QUALCOMM. "Embratel's financial strength, Brazilian telecom expertise, and ability to realize significant synergies from its existing operations will help Vesper enhance its voice and data service offerings. In particular, we are encouraged by Embratel's plans to extend and expand Vesper's position in Brazil's high-speed broadband Internet access market as it grows Latin America's first, and largest, 3G CDMA 1xEV-DO network. Furthermore, we are excited about Embratel's ability and plans to expand CDMA's market position as the dominant wireless access technology within Brazil."

Qualcomm Inc.

Embratel Participações S.A.

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