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( BW)(CO-VELOCOM) VeloCom Raises Additional $260 Million in Private Funding

Business Editors & High-Tech Writers

DENVER--(BUSINESS WIRE)--Jan. 10, 2001--VeloCom Inc.:

Existing Investors Show Confidence in Business Plan for Broadband
Communications Projects in the Latin American Countries of
Brazil, Argentina, and Uruguay

VeloCom Inc. today announced it has secured an additional $260 million in private funding from current investors for continued development of the company's broadband communications projects in the Latin American countries of Brazil, Argentina, and Uruguay.
The investment is a combination of equity and convertible debt. The equity financing comes from a number of VeloCom's larger, established investors, while the convertible debt is from existing investor, QUALCOMM Inc. (Nasdaq:QCOM).
"This substantial investment is a strong validation of VeloCom's business plan -- to continue building broadband telecom operations in high-growth Latin American markets," said David Leonard, president and CEO of VeloCom. "Unlike the more lackluster competitive local telecom business in other parts of the world today, the surging local telecom markets in Brazil, Argentina and Uruguay -- along with our business strategy and strengths -- are helping us build VeloCom into a successful international broadband provider. To receive this amount of funding in choppy capital markets also is a validation of our strategy."
Previously, VeloCom companies have secured $425 million in private equity and $1.8 billion in vendor financing. Of the previous $425 million in private equity raised by VeloCom, $255 million came in the form of the largest, venture-backed private placement in history for both Colorado and Latin American telecom, as well as the fourth largest in U.S. history.
"QUALCOMM is pleased to expand its strong relationship with VeloCom," said Jeff Jacobs, senior vice president of business development, QUALCOMM. "We are excited about the opportunity to extend the growth of wireless communications in Latin America, specifically Brazil. With projects such as Vesper, the world's largest deployment of CDMA Wireless Local Loop (WLL), we believe VeloCom will be a leader in broadband communications within the region. The deployment of cdma2000 1x this year, and cdma 1xEV next year, will continue to ensure their leadership position," added Jacobs.
"We are pleased to be able to make this additional investment into VeloCom," said Jacques Gliksberg, managing director for Banc of America Equity Partners - Latin America. "VeloCom has achieved tremendous growth in a relatively short time period and we are confident with the continuing market opportunity in Latin America."
QUALCOMM owns 16.2 percent of VeloCom's Brazilian operation, Vesper, and has been an investor directly in VeloCom prior to this round of financing.

About Banc of America Equity Partners

Banc of America Equity Partners is the exclusive provider of direct equity and related investment capital for Bank of America. The unit makes both direct and indirect equity investments and has committed capital of US$7.5 billion globally, making it one of the largest private equity portfolios in the bank industry. In addition to its Chicago headquarters, the group has offices in Charlotte, NC, Dallas, TX, Foster City, CA, London, Milan, Frankfurt, Warsaw, Hong Kong, Singapore, Mumbai (Bombay), Tokyo, Sao Paolo and Buenos Aires.


QUALCOMM Incorporated ( is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (CDMA) digital technology. The Company's business areas include integrated CDMA chipsets and system software; technology licensing; Eudora(R) email software; satellite-based systems including OmniTRACS(R) and portions of the Globalstar(TM) system. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2000 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.

About VeloCom Inc.

Denver-based VeloCom is a provider of competitive voice, data and Internet services in key markets in Latin America. In Brazil, VeloCom operates under the brand name Vesper, and in conjunction with partners QUALCOMM Incorporated and Bell Canada International, offers wireless voice and data transmission services in two Brazilian regions that include the cities of Rio de Janeiro, Belo Horizonte and Sao Paulo. VeloCom offers Internet access and related services in Brazil through Vento, a joint venture formed with VeloCom's partners in Vesper. Vento provides services to business and residential users in 18 Brazilian cities, including twelve cities in the Vesper licensed territories. VeloCom Argentina provides high-speed data transmission and Internet access services to business and residential users over wireless spectrum frequencies to Buenos Aires and holds licenses to provide similar services in four other major cities in Argentina. VeloCom Uruguay provides broadband wireless data transmission and Internet services to businesses in Montevideo. For more information, visit

Note to Editors: QUALCOMM, OmniTRACS and Eudora are registered trademarks and OmniExpress is a trademark of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc. All other trademarks are the property of their respective owners.


CONTACT: VeloCom Inc.
Jane Okun, 303/874-1383
Metzger Associates
Joe Pate, 303/786-7000
Christine Trimble, 858/651-3628


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