Telular Corporation 2001 Annual Report

In August 2001, Motorola sold its holdings in theCompany to a private investor. Motorola also relinquishedits right to representation on the Company’s Board ofDirectors, as well as its right of first refusal on any tenderoffer for the Company.AXESSTEL RELATIONSHIPIn 2001, the Company entered into an OEM supplyagreement with Axesstel, Inc., a San Diego-based manufacturerof CDMA products, for the supply of TelularlabeledPHONECELL ® Fixed Wireless Terminals based onthe CDMA standard. At the same time the Company andAxesstel entered into a non-exclusive, limited field of usepatent license agreement allowing Axesstel to incorporatethe Company’s Invention into their products.MANUFACTURINGFabrication of the Company’s products is accomplishedthrough a combination of in-house assembly and contractmanufacturing. Contract manufacturers make and testprinted circuit boards for the Company. The final assemblyof PHONECELL ® and TELGUARD ® products is performedat the Company’s facility in Vernon Hills, Illinois, except forthe PHONECELL ® SX4 Desktop Phones, which are assembledby a contract manufacturer in Mexico.The Company has developed proprietary testing equipmentand procedures to conduct comprehensive qualitycontrol and quality assurance throughout the manufacturingand assembly process. Quality programs are a highpriority at the Company. The Vernon Hills facility becameISO 9001 certified during fiscal year 1998. The Company’squality assurance department works closely with contractmanufacturers to ensure compliance to the strict qualitystandards of the Company.The Company contracts with a variety of suppliers tobuy several critical components of its products, includingcellular transceivers. In 1998, the Company began designingand producing its own cellular radio transceivers for theAMPS and GSM PHONECELL ® FWT product lines. In 1999,the Company began designing products that utilize certaincellular transceivers manufactured by Sony EricssonMobile Communications.EXECUTIVE OFFICERSThe executive officers of the Company and their ages as ofNovember 9, 2001 are as follows:name age positionKenneth E. Millard 54 Chairman of the Board, ChiefExecutive Officer and PresidentDaniel D. Giacopelli 43 Executive Vice Presidentand Chief Technology OfficerJeffrey L. Herrmann 36 Executive Vice President,Chief Operating Officer, ChiefFinancial Officer and SecretaryDaniel C. Wonak 53 Senior Vice President,MarketingKenneth E. Millard was elected Chairman of the Boardon October 9, 2001, and is currently President and ChiefExecutive Officer of the Company. Mr. Millard has servedas a director, President and Chief Executive Officer ofthe Company since April 1996. Previously, Mr. Millardserved as President and Chief Operating Officer of OncorCommunications, based in Bethesda, Maryland from1992 to 1996. He worked for Ameritech from 1982 to 1992where he served as President and Chief Executive Officerof Michigan Bell Telephone Company from 1989 to 1992.Prior to 1989, he held the positions of Senior VicePresident of Corporate Strategy for three years and SeniorVice President and General Counsel of Ameritech for fouryears. From 1972 to 1982, Mr. Millard worked for AT&Tand Wisconsin Bell as an attorney. Mr. Millard is currentlya member of the Board of Directors of Digi Internationaland Omnitech Inc.Daniel D. Giacopelli has served as a director, ExecutiveVice President and Chief Technology Officer of theCompany since October 28, 1997. Mr. Giacopelli foundedand was President and Chief Executive Officer of WirelessDomain, Incorporated from September 1995 to November1997. Prior to that time, Mr. Giacopelli was Director6 TELULAR CORPORATION