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Qualcomm Signs CDMA Test Equipment License Agreement with Grayson Electronics Company

– June 14, 1996 – Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has signed a license agreement with Grayson Electronics Company, a subsidiary of The Allen Group Inc. (NYSE: ALN). Under terms of the agreement, Grayson has been granted a worldwide, royalty-bearing license to manufacture and sell Code Division Multiple Access (CDMA) test equipment. Qualcomm's CDMA technology forms the basis for the North American digital cellular standard (IS-95).

"As an innovative developer of radio frequency (RF) products, Grayson Electronics will offer another distinctive solution to the PCS market," said Harvey White, president of Qualcomm. "We're pleased that they've joined the ranks of other leading test equipment manufacturers to support the commercial deployment of CDMA."

"With so many PCS providers now committed to CDMA, we foresee outstanding opportunities for wireless measurement products using Qualcomm's technology," said Grayson Electronics President Terry Garner. "We look forward to providing the industry with a tool for accurate data, smooth system verification and rapid PCS implementation." The new test equipment products will be available early in the third quarter of 1996.

Grayson Electronics manufactures range extension and wireless measurement products for the critical site survey and frequency clearing stages of system deployment. The company was established in 1986 and is headquartered in Forest, Va.

The Allen Group Inc. is a leading supplier to the worldwide two-way wireless communications marketplace of systems expansion, site management products, antennas and test equipment; provides frequency planning, system engineering services and design programs to current and emerging wireless markets; and operates centralized automotive inspection programs.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar low-earth-orbit (LEO) satellite communications system. Other company products include the Eudora Pro electronic mail software, VLSI components, and communications equipment and systems for government and commercial customers worldwide.

Except for the historical information contained herein, this news releasecontains forward-looking statements that are subject to risks and uncertainties, including timely product development, change in economic conditions of the various markets that the Company serves, as well as the other risks detailed from time to time in Qualcomm's SEC reports, including the report of Form 10-K for the year ended September 24, 1995 and most recent Form 10-Qs.
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