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Qualcomm Announces Agreement to Supply CDMA Wireless Local LoopInfrastructure and Phones to Telesystems of Ukraine Valued In Excess of$200 Million

– November 10, 1997 – Qualcomm Incorporated (NASDAQ: QCOM) today announced a signed agreement with Telesystems of Ukraine Ltd. to supply and finance a turnkey Code Division Multiple Access (CDMA) wireless local loop (WLL) network to Ukraine. Qualcomm expects to supply in excess of $200 million of equipment and services in the initial phase of system deployment. Installation is already underway in Kiev with the commercial launch scheduled for early 1998. Expansion of the system will soon follow in other regions and the network is expected to serve over 1.5 million subscribers throughout Ukraine.

The agreement includes a substantial equity investment and ownership interest in Telesystems of Ukraine which has a nationwide license to deploy a cdmaOne™ (IS-95 CDMA) 800 MHz wireless local loop basic telephony system.

"CDMA wireless local loop technology is an optimal solution to rapidly provide high-quality, reliable telephone service to the population of Ukraine, where over two million people are on a waiting list for telephone service," said Chris Simpson, senior vice president of strategic marketing, Wireless Infrastructure Products Division. "Qualcomm is proud to be the equipment supplier and a partner in this venture, which will enable Telesystems of Ukraine to leapfrog older technologies to quickly and effectively meet demand for telecommunications service. "Under the terms of the agreement, Qualcomm will provide Telesystems of Ukraine with its 800 MHz QCell™ Base station Transceiver Subsystems, QCore™ 22X Integrated Base Station Controllers and wireless local loop telephones, as well as all other equipment required for operation of the nationwide system. Qualcomm will also supply training and deployment services, and network planning services using Qualcomm's QEDesign™ network planning software.

Qualcomm is a leader in commercial CDMA wireless local loop deployments with systems in Chelyabinsk and Rostov, Russia and New Delhi, India. CDMA WLL networks provide voice quality that is competitive to wireline, and can be rapidly and economically deployed in diverse terrain. Qualcomm's CDMA products enhance the performance of CDMA systems by providing higher capacity, greater coverage and lower operating costs to operators.

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 visit the 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 and roll out of the Company's products, financing risks and performance guarantees, and risks associated with doing business internationally, 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 29, 1996 and most recent Form 10-Qs.

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Topics: Corporate
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