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10/28/04

Kyocera Launches Precautionary Battery Recall, Pursues Supplier of Counterfeit Batteries

San Diego, CA - (October 28, 2004) - Kyocera Wireless Corp., a leading global manufacturer of CDMA wireless phones and devices, today announced a voluntary and precautionary recall of potentially fraudulent batteries in its KE/KX 400 Series, 3200 Series and Slider Series phones. This recall is limited solely to cell phone batteries, as there are no defects with the Kyocera phones.

Kyocera Wireless Corp.'s (KWC's) stringent ongoing quality control processes revealed that a battery supplier, since terminated, intentionally provided KWC with batteries containing unapproved battery cells, the internal power sources within the batteries. The supplier's deceit resulted in fraudulent batteries shipping with Kyocera phones and being sold as accessories. Upon deeper investigation, KWC discovered that despite terminating the supplier's services, the supplier continued to make the fraudulent batteries and sold them into the gray (after) market. These counterfeits feature Kyocera's logo and are designed to look identical to legitimate Kyocera-approved batteries. Since the supplier is headquartered in the U.S., KWC is actively working with the United States Federal Bureau of Investigations (FBI) and Consumer Product Safety Commission (CPSC) to locate these counterfeit batteries, prosecute those involved and ensure they do not reach consumers.

"Launching this proactive recall is the responsible action to take, of course, as nothing is more important than the safety of consumers and quality of our products," said Tsuyoshi Mano, president of Kyocera Wireless Corp. "People who buy our phones instill their trust in Kyocera and we will act in their best interests. We are working closely with all of our carrier partners to identify those who may be affected and replace their batteries as quickly and conveniently as possible."

The recall is focused only on batteries from this particular supplier and only affects the aforementioned phone models. The affected batteries are easily identified by product numbers and serial codes found on the battery label. It is not known what percentage of batteries from the supplier in question contained fraudulent battery cells, as they can only be identified by disassembling the batteries. While the vast majority of batteries that will be removed from the market are likely to contain safe, reputable cells, the best way to ensure removal of all fraudulently manufactured and counterfeit batteries from the market is to recall all batteries manufactured by this supplier - good or bad.

Kyocera Wireless has been coordinating with all carrier partners to contact affected customers directly and alert them of the replacement program procedures. Many customers have already been notified and have received new batteries. Kyocera has also been working with each carrier partner to ensure that all impacted batteries have been removed from their inventories and that all retail locations contain approved batteries for each Kyocera phone model.

"This program will create a logistical and financial hardship for Kyocera Wireless Corp., but we know it is the responsible thing to do," said Mano.

Today, Kyocera has completely changed its battery supply chain and has strongly enhanced its battery quality processes. KWC has hired a widely renowned leader for its battery engineering team, has formalized a strict, ongoing third-party testing program and has doubled its own internal testing of batteries, among other enhancements. KWC is confident that the batteries currently being shipped in its phones are among the best in the business and the highest quality batteries that the company has ever sold.

KWC's global customer care centers are available to address consumers' concerns and answer questions at (toll-free) 866-559-3882, 6 a.m. - 6 p.m. PT Monday - Friday or request a replacement battery online at http://www.kyocera-wireless.com/battery.htm.

Affected Batteries
The focus of the recall is on the phone models with batteries detailed below:

Cell Phone Model Name Cell Phone Model Number Battery Product Numbers and Serial Codes
Slider Series SE44
SE47
CV90-L305N-01 (Serial Code 01E0409 or lower)
CV90-L305P-01 (Serial Code 01E0409 or lower)
CV90-L305T-01 (Serial Code 01E0409 or lower)
CV90-L349T-01 (Serial Code 01E0409 or lower)
K400 Series

"Phantom"
"Blade"
"Rave"
KE413
KE/KX414
KE/KX424
KE433
KE/KX434
CV90-K3040-03 (all Serial Numbers)
CV90-K3040-09 (all Serial Numbers)
CV90-K3040-10 (all Serial Numbers)
CV90-K3040-11 (Serial Number 1104057 and lower)
3200 Series 3225
3250
(Appears above or below phone display)
CV90-K3040-03 (all Serial Numbers)
CV90-K3040-09 (all Serial Numbers)
CV90-K3040-10 (all Serial Numbers)
CV90-K3040-11 (Serial Number 1104057 and lower)

About Kyocera Wireless Corp.
Kyocera Wireless Corp. is a leading supplier of innovative, feature-rich CDMA wireless devices and accessories for customers worldwide. Kyocera Wireless maintains an operating belief in the genius of simplicity and strives to make the wireless experience as simple and intuitive as humanly possible. The company is a wholly owned subsidiary of Kyocera International Inc., which acquired QUALCOMM Incorporated's CDMA consumer wireless phone business in February 2000. Based in San Diego, the company is ISO-14001 and ISO-9001 certified and has won city, state and federal awards for its environmentally friendly manufacturing and recycling practices. For more information, please visit www.kyocera-wireless.com.

Kyocera Corporation, the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of telecommunications equipment, semiconductor packages, electronic components, cameras, laser printers, copiers, solar energy systems and industrial ceramics. During the year ended March 31, 2004, Kyocera Corporation's consolidated net sales totaled approximately US$11 billion (JP¥ 1,140,814 million) with net income of approximately US$655 million (JP¥ 68,086 million).

© 2004 Kyocera Wireless Corp. All rights reserved. Kyocera is a registered trademark of Kyocera Corporation. All other trademarks and product names are the property of their respective owner

Contacts

Kyocera Wireless Corp.
John Chier
phone: 1-(858) 882-3543
e-mail: jchier@kyocera-wireless.com
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