Sierra Wireless Signs $30M Agreement With Verizon Wireless
for Next Generation 1XRTT CDMA Wireless Internet Products
AirCard 555 to Provide Users with High-Speed Wireless Access
to Internet & Corporate Applications
Vancouver, B.C. -- Sierra Wireless (NASDAQ: SWIR - TSE: SW) announced today it has signed a multi-year agreement with Verizon Wireless (NYSE: VZ), the largest wireless communications provider in the U.S., for the supply of next generation CDMA PC Cards.
The agreement provides for wireless Internet device purchases of approximately US$30 million over a twelve-month period. Sierra Wireless will deliver the AirCard 555, a dual-band (800 MHz / 1900 MHz) wireless PC Card, based on CDMA2000TM (commonly known as 1xRTT) - a high speed, next generation wireless technology that allows mobile users to access the Internet and other enterprise applications at speeds of up to 144 Kbps.
"We have worked closely with Sierra Wireless to deliver wireless data solutions to mobile users over the past six years," said Gary Schulman, president of the new Wireless Data & Internet Services Division at Verizon Wireless. "We look forward to working with Sierra Wireless to provide our customers with next generation products and meeting the growing demands for high speed wireless data."
The AirCard 555 is the latest innovation in Sierra Wireless' award winning AirCard® product line. The AirCard fits into a standard Type II slot on a laptop or other handheld computer device and enables customers to have high-speed wireless access to the Internet and a host of other corporate applications.
"This agreement with Verizon Wireless marks another important milestone for Sierra Wireless," said Jason Cohenour, senior vice president, distribution for Sierra Wireless. "As the largest US carrier, Verizon Wireless offers nationwide wireless service to more than 26 million voice and data customers, and they continue to build on their market leadership. We're delighted that they have chosen Sierra Wireless to provide next generation products as an integral part of their network evolution to 1XRTT".
Verizon Wireless and Sierra Wireless have worked together over the past six years in developing the Cellular Digital Packet Data (CDPD) market. Sierra Wireless produces wireless modems that allow laptop and PDA users to connect to the Internet over the Verizon Wireless data network.
Both Sierra Wireless and Verizon Wireless are members of the WirelessReadyTM Alliance, a program founded by Sierra Wireless that brings together leading computing and communications vendors in the development of complete and compelling wireless data solutions.
About Sierra Wireless
Sierra Wireless is a leading provider of wireless data communications hardware and software products. Sierra Wireless delivers wireless PC Cards for portable computers, rugged vehicle-mounted wireless modems and OEM modules for embedded applications. Sierra Wireless is the founding member of the WirelessReadyTM Alliance, an alliance of industry-leading hardware, software and service companies committed to the delivery of complete and compelling wireless data solutions. For more information on Sierra Wireless, visit its Web site at http://www.sierrawireless.com.
"AirCard", "AirBoard" and "WirelessReady" are trademarks of Sierra Wireless, Inc. All other trademarks or service marks in this news release are the trademarks or service marks of their respective owners.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding future revenues depend upon our ability to manufacture and supply products which we do not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.
About Verizon Wireless
Verizon Wireless is the largest wireless communications provider in the U.S. with 26.3 million wireless voice and data customers and 3.5 million paging customers. The new coast-to-coast wireless provider was formed by the combination of the U.S. wireless businesses of Bell Atlantic Corp. and GTE Corp - now Verizon Communications (NYSE:VZ) and Vodafone. The new company includes the assets of Bell Atlantic Mobile, AirTouch Cellular, GTE Wireless, PrimeCo Personal Communications and AirTouch Paging. The company has a footprint covering nearly 90 percent of the U.S. population, 49 of the top 50 and 96 of the top 100 U.S. markets. Verizon Wireless, headquartered in Bedminster, NJ, is 32,000 employees strong. Reporters and editors can find more information about the company in its Media Center on the Web at: http://www.verizonwireless.com/mediacenter/index.shtml
Conference Call and Instant Replay
Sierra Wireless will host a conference call on November 13, 2000 at 7.00 am PST, 10.00 am EST. To participate in this conference call, please dial the following toll free number approximately five minutes prior to the commencement of the call:
Should you be unable to participate, Instant Replay will be available for 72 hours following the conference call by dialing: