Press Releases

For Immediate Release
Contact: Melinda M. Bascone
Director of Marketing
Carter Ledyard & Milburn LLP


The World's Leading Producer of "Intelligent Network" Telephone Equipment To Expand Globally

NEW YORK, NY-July 8, 1996 -- CIDCO Incorporated, the world's leading producer of subscriber terminal equipment that supports network services being offered by telephone companies, announced that Forstmann Little & Co has invested $150 million of growth capital into the company.

James E. Abbott, a partner at Carter, Ledyard & Milburn, attorneys for CIDCO, said "This deal represents an opportunity for CIDCO to continue its growth through the aggressive pursuit of opportunities in the emerging global telecommunications marketplace."

The Forstmann Little investment took the form of newly issued Subordinated Convertible Notes, convertible into approximately 19% of CIDCO's currently outstanding common stock. The convertible debt has a 7-year term and carries an interest rate of 3.75%. It is noncallable for five years and is convertible into CIDCO common stock at a price of $41 per share. Upon conversion of the debt into common stock, Forstmann Little would become CIDCO's largest shareholder. In connection with the transaction, Theodore J. Forstmann has joined CIDCO's board of directors. CIDCO and Forstmann Little executed a Note Purchase Agreement on Friday, June 7th, and closed this investment transaction on Friday, June 28, 1996.

CIDCO Incorporated was represented by partners James E. Abbott, Steven J. Glusband and associates, Richard G. Pierson, David M. McDonald, Stanley D. Baum, Steven Sibol and Cassandra D. Williams of Carter, Ledyard & Milburn. Forstmann Little was represented by partners, Aviva Diamant, F. William Reindel, Joel Scharfstein and associate, Michael Krawitz of Fried, Frank, Harris, Shriver & Jacobson.

Carter Ledyard & Milburn LLP (, established in 1854, has approximately 90 attorneys and has been headquartered on Wall Street since its founding. Carter Ledyard's general practice includes corporate, securities, mergers and acquisitions, broker-dealer, on-shore and off-shore hedge and other alternative investment funds, private equity, litigation, intellectual property, environmental, employment, media and technology, immigration, investment regulation, antitrust, art law, trusts and estates, maritime, ERISA, tax-exempt organizations, real estate, tax and bankruptcy. A significant part of the firm's practice involves representing overseas-based clients and their U.S. affiliates, financial institutions and other financial services providers, governmental entities and media and technology clients.

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