KING OF PRUSSIA, Penna., 21 December 2004. InterDigital announced that they have entered into an agreement with General Dynamics to deliver 3G wireless technologies for use in the Mobile User Objective System (MUOS) advanced communications military program.

The company expects to receive $18.5 million for delivery and license of its commercial technology solution, maintenance and product training for use within the governments MUOS and Joint Tactical Radio Systems programs.

MUOS is an advanced tactical terrestrial and satellite communications system utilizing Third Generation ("3G") commercial cellular technology to provide significantly improved high data rate and assured communications for U.S. warfighters.

InterDigital will deliver its standards-compliant Wideband Code Division Multiple Access ("WCMDA") modem technology to General Dynamics for incorporation into handheld terminals that will transmit text, voice, video, and multimedia at data rates of that are significantly faster than previous systems.

The companies are part of a team led by Lockheed Martin, that also includes Boeing and Ericcson.

The signing of this agreement builds on the momentum InterDigital has seen in 2004. InterDigital's ground-breaking work in developing global wireless technologies has resulted in solid financial performance and a market capitalization exceeding $1 billion as of November 30, 2004. InterDigital's revenues have increased 120% over 2001 revenues, accompanied by dramatic growth in cash flows. The Company's financial strength is reflected in its essentially debt-free cash and cash equivalent balance of $145 million at the most recent quarter end.

Details follow, according to InterDigital's SEC 8K filing:

InterDigital Communications Corporation (the "Company" or "InterDigital") has entered into an agreement with General Dynamics Decision Systems, Inc. ("General Dynamics"), to serve as a subcontractor on the Mobile User Objective System ("MUOS") program for the U.S. military. MUOS is an advanced tactical terrestrial and satellite communications system utilizing Third Generation ("3G") commercial cellular technology to provide significantly improved high data rate and assured communications for U.S. warfighters. Lockheed Martin leads the MUOS program team.

The Software License Agreement requires InterDigital to deliver its standards-compliant Wideband Code Division Multiple Access ("WCMDA") modem technology to General Dynamics for incorporation into handheld terminals. The MUOS 3G WCDMA waveform is the air interface technology that will transmit text, voice, video, and multimedia to a wide range of platforms, including handheld terminals with an "always-on" connection that is expected to be significantly faster than previous systems.

Under the agreement, InterDigital expects to receive $18.5 million for delivery and a limited license of its commercial technology solution for use within the
government's MUOS and Joint Tactical Radio System programs, maintenance and product training. The agreement also includes options that are exercisable by
General Dynamics at various times through March 2006 for additional deliverables for up to $4.0 million, and contains a termination for convenience provision,
penalties for delays, and other provisions typical for contracts involving government procurements. The Company anticipates that at least a majority of its
MUOS program deliverables and related payments will occur in 2005, excluding the exercise of options for additional deliverables. InterDigital will provide
maintenance and support to General Dynamics for three (3) years following delivery of the technology. In addition to the deliverables specifically identified in the agreement, InterDigital has agreed to provide additional
future services as requested by General Dynamics under an agreed to pricing structure.

For more information, see www.interdigital.com.