Ericsson Technology Licensing AB, responsible within Ericsson for the development and licensing of the BluetoothTM wireless technology, has signed a contract with the Korean based company, Samsung Electronics for worldwide distribution of Bluetooth wireless technology.

The joint license agreement expands Ericsson's global position in the next generation Bluetooth wireless market and brings Samsung Electronics technical advantage in the manufacturing of core semiconductor components.

"Samsung is Ericsson's first Asian partner in its Bluetooth wireless technology business, and through extensive marketing efforts, the worldwide demand for Ericsson's expertise in the communications market is expected to grow," said Maria Khorsand, President at Ericsson Technology Licensing AB in Lund, Sweden.

Under the terms of the contract, Samsung will license the Bluetooth wireless technology from Ericsson and integrate it into its semiconductor products. These devices will meet the needs of customers worldwide for next generation wireless products which will be available under the Samsung brand name in products such as mobile phones and PDA's.

"The decision to go with the Bluetooth wireless technology from Ericsson was made after a thorough evaluation of the Bluetooth intellectual property solutions was completed," stated Dr. Hyung Lae Roh, executive vice president and general manager at Samsung Electronics' System LSI Business. "It was chosen because of its quality, completeness and the maturity of the solution. Naturally, we were also impressed by the wide support of Bluetooth functionality and profiles," he continued.

"Samsung is really optimistic. They are eager to utilize Ericsson's Bluetooth wireless technology and to get the products out," added Frank Hennekens, business manager for baseband products at Ericsson Technology Licensing AB. He also stated that the partnership is viewed as strategically important for Ericsson in its global positioning as the leader in Bluetooth wireless technology.