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Qualcomm and Asahi Kasei Microsystems Co., Ltd. Sign LOI for Triple-Mode CDMA Chipset

– December 09, 1996 – Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has signed a Letter of Intent (LOI) with Asahi Kasei Microsystems (AKM) Co., Ltd. to provide a triple-mode chipset for the Code Division Multiple Access (CDMA) market in Japan.

The chipset incorporates Qualcomm-developed CDMA digital baseband technology and AKM-developed J-TACS and N-TACS analog baseband technology. The new chipset will provide a complete solution for triple-mode handsets and specialized terminals for digital cellular, Personal Communications Services (PCS) and wireless local loop applications.

The chipset consists of two chips, one digital and one analog. Qualcomm will supply the Mobile Station Modem (MSM), which provides all of the CDMA vocoder and control functions, and AKM will provide the Analog Baseband Processor (ABP), which implements all J/N-TACS, voice codec and baseband processing functions.

"As the second largest cellular market in the world, Japan is of strategic importance for Qualcomm," said Johan Lodenius, director of marketing for Qualcomm's ASIC Products group. "The combination of our CDMA design knowledge and AKM's expertise in the Japanese market for analog gives us a competitive advantage in this highly competitive region."

Qualcomm is developing a series of semiconductor products based on its CDMA technology. These products will enable the faster design of highly integrated, low-power devices for subscriber and network equipment. CDMA technology offers increased capacity, higher voice quality, longer battery life and enhanced security.

"Our mission is to create a family of high-performance semiconductor products for CDMA applications worldwide, combining our core strengths in CDMA technology and system level chip design with advanced applications support capabilities to get optimized solutions to market rapidly," said Donald Schrock, vice president and general manager of Qualcomm's ASIC Products group.

"We feel that there is significant opportunity for CDMA to establish itself as a leading technology in Japan, and are very excited about working with Qualcomm to address the need for a highly effective chipset," said Kyoji Kurata, managing director of marketing for AKM. "AKM's low-power mixed signal expertise and Qualcomm's CDMA technology are a winning combination. We are confident that the market will benefit from the commitment of bothour companies to support it."

Asahi Kasei Microsystems Co., Ltd. (AKM), a wholly-owned semiconductor unit of Asahi Chemical Industry Co., Ltd., entered the LSI business in June 1983. AKM's product line includes full custom LSIs and ASSPs for mobile communications, digital transmission, and digital audio applications andare based on AKM's unique CMOS mixed analog/digital technology.

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, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visitthe Company's web site at http://www.qualcomm.com

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development and commercial implementation of the Company's CDMA technology, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, timing and receipt of license fees and royalties, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1996 and most recent Form 10-Qs.

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