Novatel Wireless and LG Innotek Forge Strategic Alliance
-- LG Innotek Advances into Wireless Data Access as Novatel Wireless Gains Key Strategic Partner—-
-- Agreement will Significantly Lower Costs for Current and Next Generation Wireless Data -- SAN DIEGO, CALIFORNIA and SEOUL, KOREA – October 29, 2002 – Novatel Wireless, Inc. (Nasdaq: NVTL;NVTLD), a provider of wireless data access solutions, and LG Innotek Co., Ltd., a wholly-owned subsidiary of $80 billion electronics giant, LG Group, today announced a strategic alliance. Novatel Wireless will now source a majority of its wireless data modem components from LG Innotek, who will begin manufacturing Novatel Wireless products in its state-of-the-art, cost-efficient manufacturing facility in Seoul, South Korea. The agreement, which allows Novatel Wireless to benefit from LG Innotek’s enormous manufacturing power in the wireless components marketplace, also provides a strategic entry point for LG Innotek in the growing wireless data industry.
While financial terms of the alliance were not disclosed, the agreement is expected to lead to a long-term partnership between the two synergistic companies, with additional details to be announced at a later date.
“We’ve chosen to align ourselves with Novatel Wireless, a proven leader in the wireless data space, as a means of gaining exposure and expertise in a market forecasted to grow rapidly,” stated Harry Kang, US Branch Office Manager of LG Innotek Co., Ltd. “While we focus on making wireless data products more cost effective, Novatel Wireless can focus on R&D and together we can deliver a compelling offering to wireless service providers and technology leaders. As partners, we believe we can be true leaders in this industry for many years to come.”
“This agreement is a critical part of our strategy that goes significantly beyond our prior contract manufacturing relationships,” remarked John Major, chairman and chief executive officer of Novatel Wireless. “Not only will we be able to significantly lower the costs of our products while improving margins, but we will be partnered with a global leader who we think can help us drive sales and acceptance of our technology around the world. As a leading manufacturer of wireless components, LG Innotek can leverage substantial resources to deliver high quality components to Novatel Wireless at very attractive price points.”
ABOUT LG INNOTEK CO., LTD.
LG Innotek Co., Ltd. is a leading manufacturer of electric components and defense systems. LG Innotek is headquartered in Seoul Korea with several manufacturing sites in China, Indonesia and Mexico. The company is focused on maximizing synergy created by combining its electric component business including digital /analog tuners, optical disc drive motors, and RF components with technology and business skill sets. LG Innotek is also growing as the worlds best in digital media components, information appliance components, optical components and cutting-edge electrical equipment for the defense industry. LG Innotek is continuously challenging itself to expand the horizon of the core digital technology through R&D investment and relationships worldwide. For more information, please visit the LG Innotek web site: www.lginnotek.com or call 82 2 2104 0318
ABOUT NOVATEL WIRELESS, INC.
Novatel Wireless, Inc. is a leading provider of wireless data modems and software for use with handheld computing devices and portable personal computers. The company delivers innovative and comprehensive solutions that enable businesses and consumers to access personal, corporate and public information through email, enterprise networks and the Internet. Novatel Wireless also offers wireless data modems and custom engineering services for hardware integration projects in a wide range of vertical applications. The Novatel Wireless product portfolio includes the Minstrel® Family of Wireless Handheld Modems, MerlinTM Family of Wireless PC Card Modems, Sage® Wireless Serial Modems, Lancer 3WTM Family of Ruggedized Modems and ExpediteTM Family of Wireless Embedded Modems. Headquartered in San Diego, California, Novatel Wireless is listed on the Nasdaq Stock Market (Nasdaq: NVTL). For more information, please visit the Novatel Wireless web site: www.novatelwireless.com or call 888-888-9231.
© 2002 Novatel Wireless. All rights reserved. The Novatel Wireless logo, Minstrel, Merlin, Sage, Lancer 3W and Expedite are trademarks of Novatel Wireless, Inc. Minstrel and Sage are registered with the U.S. Patent and Trademark Office. All other brands, products and company names mentioned herein are trademarks of their respective holders.
This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include risks relating to technological changes, continued acceptance of Novatel Wireless' products and dependence on intellectual property rights. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Novatel Wireless' filings with the United States Securities and Exchange Commission and other regulatory agencies.