CDMA2000 Leads 3G With More Than 10 Million Subscribers; CDMA2000 Continues to Dominate 3G with More Than 98 Percent Market Share.

Business Editors & High-Tech Writers

3G World Congress

HONG KONG--(BUSINESS WIRE)--June 11, 2002

The CDMA Development Group (CDG)(www.cdg.org) today announced that there are more than 10 million CDMA2000 subscribers worldwide, accounting for more than 98 percent of the total number of 3G users.

CDMA2000 continues to grow at a phenomenal rate, now adding nearly 1.5 million subscribers per month. Today's announcement was made at the 3G World Congress, being held this week at the Hong Kong Convention and Exhibition Centre.

"The CDMA community has once again shown extraordinary leadership in 3G wireless communications," said Perry LaForge, executive director of the CDG. "The subscriber demand for wireless data connectivity continues to increase, opening new opportunities for service providers and manufacturers."

"With 3G CDMA technology, operators are increasing revenue opportunities by providing subscribers with leading-edge multimedia applications, while consumers benefit from the wide variety of applications and devices available today," said Andy Seybold, industry analyst and editor-in-chief of Forbes/Andrew Seybold's Wireless Outlook.

"The CDMA industry's landmark achievement of reaching 10 million subscribers further validates the fact that CDMA is leading 3G."

"We are proud to be contributing to the rapid growth of CDMA2000 3G wireless communications," said Tadashi Onodera, president of KDDI, Japan.

"Since its launch on April 1, 2002, KDDI gained nearly 700,000 CDMA2000 1X subscribers in two months. This contrasts with W-CDMA's relatively slow penetration by our competition in Japan, which had acquired 112,000 customers in eight months of commercial deployment. We believe this overwhelming market acceptance of CDMA2000 service partly stems from its ability to be quickly rolled out."

There are 15 operators in the Americas, Asia and Europe offering 3G services with CDMA2000. These operators include Bell Mobility (Canada), Centennial Puerto Rico, KDDI (Japan), KT Freetel (Korea), Leap (U.S.), LG Telecom (Korea), Metro PCS (U.S.), Monet Mobile (U.S.), SK Telecom (Korea), Telefonica Celular (Brazil), Telesp Celular (Brazil), Telus Mobility (Canada), Telemobil (Romania), Verizon Wireless (U.S.) and Western Wireless (U.S.).

Additionally, several global operators are moving to the next phase of CDMA2000, CDMA2000 1xEV-DO. SK Telecom and KT Freetel launched their CDMA2000 1xEV-DO networks in Korea earlier this year, and Verizon is currently trailing 1xEV-DO.

The growth rate of CDMA2000 subscribers is expected to continue at a rapid rate. Analysts predict that by the end of 2002, 26 percent of CDMA subscribers will be using CDMA2000 3G phones with this number increasing to 89 percent by 2006.

Games, video-on-demand, video messages and high-speed Internet access are some of the multimedia applications being delivered by CDMA2000 today. SK Telecom and KT Freetel are currently transmitting the 2002 FIFA World Cup matches on their 1xEV-DO networks in Korea.

The CDMA Development Group is a nonprofit trade association formed to foster the worldwide development, implementation and use of cdmaOne(TM) and CDMA2000. The 110 member companies of the CDG include many of the world's largest wireless operators and equipment manufacturers.

The primary activities of the CDG include development of CDMA features and services, public relations, education and seminars, regulatory affairs and international support. Currently, there are more than 500 individuals working within various CDG subcommittees on CDMA-related matters.

For more information about the CDG, contact Valerie Christopherson of the CDG News Bureau at 714/540-1030, ext. 14, e-mail [e-mail], or visit the CDG Web site at www.cdg.org.