June 30, 1998 in Social Responsibility News

SAMSUNG Electronics Signs US$60 million GMPCS Handset Supply Contract with ICO

SEOUL, Korea - June, 30, 1998 - Samsung Electronics Co., Ltd., On June 29, Samsung Electronics Information & Communications Division President Hee Joon Park and Intermediate Circular Orbit Global Communications (ICO) Chairman, Olof Lundberg formally signed a contract designating Samsung Electronics to supply ICO with around US$60 million worth of Global Mobile Personal Communications by Satellite (GMPCS) handsets. The signing ceremony was held at the Samsung Electronics Head Office in Seoul, Korea.

The deal was concluded after ICO determined that Samsung Electronics had the capability to develop transceiver antennae for use with both cellular and satellite networks as well as outstanding technology related to RF design for sending and receiving voice data.

At the signing ceremony, President Park said, "The finalization of this contract with ICO will lay the groundwork for Samsung Electronics to develop and produce GMPCS handsets and will propel us into the GMPCS business."

Samsung Electronics is to supply ICO with a total of 100,000 handsets, half of which will use the CDMA format and the other half to operate according to the GSM standard. Product development is scheduled for completion in 1999, and the products are to be shipped in the year 2000.

ICO is preparing to open GMPCS service in 2000. In this connection, the company has selected three manufacturers -- Samsung Electronics, NEC and Mitsubishi -- as its hardware suppliers. All three companies will deliver the GSM handsets, but Samsung Electronics will be the exclusive supplier of the CDMA models.

Last October, Samsung Electronics and ICO signed an agreement for Samsung to supply a total of two million handsets (about half of which will be CDMA models) to fifty service providers around the world using the ICO satellite network. That agreement is to take place for three years, starting in the year 2000.

The GMPCS handset market, which consists of both CDMA and GSM formats, is extpected to toal 1.8 million units in 2000 and grow to 6.2 million units by 2004. Of this total, Samsung Electronics will supply nearly half.

GMPCS uses satellites in non-stationary orbits to provide communications services anywhere on the globe. Compared with geo-stationary satellite networks, GMPCS can transmit data faster and with less frequency loss. Therefore, the handsets can be made lighter and smaller for the GMPCS network than for other networks.

GMPCS can cover the entire world, so it is considered to represent the basic technology for realizing IMT-2000. Currently, ICO, Globalstar, Iridium and Odyssey are taking part.

Led by Inmarsat (an international satellite organization), ICO is a US$4.8 billion concern that is made up of 58 investors in 51 countries. One of these investors is ICO Korea, which was established among Samsung Electronics, Korea Telecom and Shinsegi Telecom.

ICO was established in January 1995 in the UK as a private company to provide satellite-enabled personal mobile global communications services. ICO's system consists of a space segment and a dedicated ground network. The space segment comprises twelve satellites (ten operational and two spares) in middle earth orbit (10,355km). Worldwide services include digital voice transmission, data transmission, facsimile transmission, cellular paging and global positioning.

In Samsung Electronics Co., Ltd., there are three main business units:
. Multimedia & Home Appliances
. Semiconductors
. Information & Telecommunications.

Samsung Electronics Co., Ltd., a US $13 billion (1997) flagship company of Korean-based the Samsung Group, is a world leader in electronics, with operations in more than 60 countries and 85,000 employees Worldwide.

CONTACT:
Helen Hwang
Overseas PR
Telecommunications Business
Samsung Electronics Co.,Ltd.
Tel. 82-2-751-6215
Fax. 82-2-751-6026/6036
Email: bellevue@samsung.co.kr


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