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EXHIBIT 99.1
[ISCO LOGO]
NEWS
RELEASE
CONTACT: Maureen Murnane
PHONE: 847-391-9492
INTERNET: [email protected]
ILLINOIS SUPERCONDUCTOR AND KMW INC. OF KOREA AGREE
TO DEVELOP NEW SUPERCONDUCTING RECEIVER FRONT-END FOR 3G WIRELESS MARKET
Mt. Prospect, IL (January 3, 2001) - ILLINOIS SUPERCONDUCTOR CORPORATION (OTC
Bulletin Board: ISCO), a leading supplier of interference management solutions
for the wireless telecommunications industry, and KMW INC. of Korea
(KOSDAQ:KMW), Korea's leading supplier of front-end components and subsystems to
the wireless industry, announced today that the two companies have signed an
agreement to jointly develop an advanced-design cryogenic receiver front-end
(CRFE) system to meet the requirements of third-generation (3G) Wideband-CDMA
wireless systems to be deployed, beginning this year, in Japan and Korea.
"Over the past year, we believe that the leaders in the wireless industry -
especially in Asia - have developed a consensus that CRFE systems can play an
important role in enabling 3G networks to control interference and achieve
maximum performance," said Dr. George Calhoun, Chief Executive Officer of ISCO.
"By working with KMW, one of the world's leading companies in the development of
innovative front-end components and technologies for wireless networks, we can
address the needs of 3G customers more effectively. KMW is an outstanding
manufacturer, and they also bring a strong innovative spirit and excellent
front-end technology to the project. Moreover, they are guided by their
visionary leader, D.Y. Kim, who recognized the advantages of superconducting
technology early on. KMW is prepared to seize the initiative with us in bringing
HTS/CRFE systems to the commercial market. I am extremely pleased to be working
with KMW. They are the right kind of partner for us."
D.Y. Kim, Founder and Chairman of KMW, said: "My goal is to build KMW into the
world leader for 3G front-end systems. I believe that improved front-end
performance will be crucial for realizing the service objectives of the wireless
internet. KMW is bringing forward new technology for bridging to smart antenna
systems using compact three-dimensional beam-forming technology. We believe that
superconductor-based filters and cryogenic amplifiers will be synergistic with
better signal management and interference management systems. ISCO is the world
leader in HTS systems, and for this reason we wanted to work with them on this
important technology."
Dr. Amr Abdelmonem, Chief Technical Officer for ISCO, said: "With KMW as a
partner, we can realize quantum improvements in size, cost, and other commercial
dimensions of the CRFE. The technical merits of HTS have been well established
through our tests in Japan; now we must
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'productize' the 3G system to be ready for the market as it develops this year.
I am confident that with the leadership of D.Y. Kim, we will meet, and hopefully
exceed, our customers' expectations, and will do so on an accelerated
timetable."
KMW Inc., founded in 1991 and headquartered in Korea, is an innovative and
dynamic company specializing in RF and Microwave products for mobile
communications infrastructure. KMW is a preferred OEM supplier to major wireless
systems companies such as Fujitsu, Lucent, Ericsson, Motorola and Samsung. KMW
develops and manufactures products across a full range of RF products from the
component level to the system level, including RF switches, filters, switchable
combiners/dividers, front-end units, tower-top amplifiers, repeaters, and
thin-film products. Recently, KMW announced a new 3-Way Beam Control Antenna
system for IMT-2000 that was introduced this month in Japan.
KMW employs approximately 800 people at its operations in Korea, China, Japan,
and the United States. Through quality products and innovative technology, the
company expects revenues of approximately $110 million in 2000. KMW has received
several awards for technological innovation from the Korean government, and also
received the 1997 Product of the Year Award from Microwaves & RF Journal for its
dielectric resonator based PCS Filter and took the cover page of Microwave
Journal for its 5X4 switchable combiner/divider in 1996. For additional
information on KMW, please visit the company's web-site at
http://www.kmwinc.com/
Illinois Superconductor Corporation is a leading supplier of interference
management solutions for the wireless telecommunications industry and the
industry leader in the commercialization of high temperature superconducting
technology for wireless telecommunication applications. The Company develops,
manufactures and markets radio frequency (RF) products to enhance the quality
and capacity of cellular telephone, personal communications services and other
wireless telecommunications services. More information about Illinois
Superconductor Corporation is available on the Company's internet web site at
http://www.ilsc.com.
ISCO offers the broadest range of interference management solutions in the
industry. It offers the only patented product in the world that suppresses
in-band interference within 20 milliseconds. The company offers the widest range
of configurations for HTS out-of-band interference solutions that support
cellular, PCS and 3G systems. Its products include the smallest HTS filter
systems on the market today, as well as the only failure-proof all-temperature
HTS filter architecture, our patented ATP(TM) system. ISCO has sold more than
300 systems worldwide and has on-going field trials with domestic and
international service providers. ISCO is also developing ultra-high-performance
superconducting front-end products, including both transmitter and receiver
products for emerging third generation (3G) wireless systems. 3G systems are
expected to replace current wireless systems over the next several years.
Because the Company wants to provide investors with more meaningful and useful
information, this news release contains, and incorporates by reference, certain
"forward-looking statements" that reflect the Company's current expectations
regarding the future results of operations, performance and achievements of the
Company. The Company has tried, wherever possible, to identify these
forward-looking statements by using words such as "anticipates," "believes,"
"estimates," "expects," "plans," "intends" and similar expressions. These
statements reflect the Company's current beliefs and are based on information
currently available to it. Accordingly, these statements are subject to certain
risks, uncertainties and contingencies, which could cause the Company's actual
results, performance or achievements to differ materially from those expressed
in, or implied by, such statements. These factors include, among others, the
following: the Company's ability to obtain additional financing in the near
future; the Company's history of net losses and the lack of assurance that the
Company's earnings will be sufficient to cover fixed charges in the future;
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uncertainty about the Company's ability to compete effectively against better
capitalized competitors and to withstand downturns in its business or the
economy generally; the adverse effects on liquidity of the Company's common
stock because of its de-listing from the NASDAQ National Market in June 1999;
continued downward pressure on the prices charged for the Company's products due
to the competition of rival manufacturers of front-end systems for the wireless
telecommunications market; the timing and receipt of customer orders; the
Company's ability to attract and retain key personnel; and the effects of legal
proceedings. A more complete description of these risks, uncertainties and
assumptions is included in the Company's filings with the Securities and
Exchange Commission, including those described under the heading "Risk Factors"
in the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 1999. The Company undertakes no obligation to release publicly the results
of any revisions to any such forward-looking statements that may be made to
reflect events or circumstances after the date of this Report or to reflect the
occurrence of unanticipated events
