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Qualcomm Ships Integrated Fax and Data Capabilities for CDMA Wireless Network Infrastructure

– January 22, 1998 – Qualcomm Incorporated (NASDAQ: QCOM) today announced the availability of IS-707 packet data, circuit-switched data and digital fax capabilities on its cdmaOne™ (IS-95 and J-STD-0008 Code Division Multiple Access) infrastructure equipment. This new service offers wireless service providers an end-to-end solution for data services. Qualcomm, the first vendor to demonstrate packet data capabilities on a CDMA system in early 1997, continues to lead the industry in CDMA data with the introduction of packet data IS-707 data services for CDMA wireless networks.

"We believe that in order for wireless service providers to maintain a competitive edge in their markets, they must be able to provide advanced features and services, such as fax and data, to their customers," John Major, president of Qualcomm's Wireless Infrastructure Products Division. "Therefore, we are proud to continue our CDMA data leadership by bringing IS-707 services to market first. Operators in Chile, India, Russia and Ukraine are already installing Qualcomm CDMA equipment with circuit-switched data and digital fax capabilities, with packet data following soon. Our customers will be the first operators in the world to offer CDMA IS-707 data service capabilities on their networks."

Digital fax allows customers of wireless service providers to send and receive faxes via their computers using their CDMA digital phone connection. Circuit-switched data, also known as asynchronous data, allows CDMA phone users to dial into an Internet Service Provider (ISP) or into a corporate Local Area Network (LAN) to access Internet or intranet services. Digital fax and circuit-switched data both employ a technique that is highly efficient for large data transfers, as a dedicated connection is maintained for the duration of the data call. Both data services now commercially available on Qualcomm's CDMA network equipment and phones for speeds up to 14.4 kilobits per second (kbps).

In order to send a fax or establish a data connection, the user simply connects their Qualcomm CDMA IS-707-capable phone to their computer with an RS-232 cable, and utilizes off-the-shelf fax or dial-up software to setup the call. The traditional computer modem is replaced by the CDMA wireless link and modems integrated into Qualcomm's QCore™ Base Station Controller(BSC), which utilize V-series data and fax modem protocols.

Packet data utilizes the Internet Protocol (IP) to transmit "packets" of data over a network, and is optimal for applications that send and receive data in bursts, such as sending and receiving e-mail, browsing the World Wide Web, or querying the Internet. Packet data offers a direct connection to the Internet in two to three seconds, and requires no "modem training time." Packet data is supported for speeds up to 14.4 kbps, and is expected to be commercially available in Qualcomm infrastructure in March 1998.

The IS-707 data capabilities reside in the QCore BSC, which employs a computer-based architecture that offers many advantages to operators, including reduced capital investment, faster implementation of new features and services, and simpler network planning.

The QCore BSC architecture includes an integrated Interworking Function (IWF), which performs the necessary tasks to process data and fax transmissions. Circuit-switched data and digital fax capabilities are integrated into the IWF, eliminating the need for third party hardware and software acquisition and integration.

Fax, data and voice calls utilize the same hardware in the QCore BSC, and resources are dynamically allocated based on a per-call basis. This means that all system resources are available for any type of call, and the system can easily accommodate a change in the mix of data and voice calls in real time. Therefore, the need for complicated network planning to allocate specific resources to voice and data calls is eliminated.

Qualcomm's CDMA systems employ a "packetized" backbone for voice, so packet capabilities are already inherent in the equipment and the only hardware upgrade required is an off-the-shelf packet router. Because data is handled similarly to voice in the network, CDMA's inherent variable rate transmission capability also applies to data services, allowing the data rate to be determined by the amount of information being sent. Therefore, CDMA data utilizes system resources on an as-needed basis, resulting in even greater spectral efficiency for operators.

Packet data services can be readily implemented in Qualcomm's QCore BSC with the addition of the packet data software and an off-the-shelf network router. The router is connected directly to the Internet, allowing operators to bypass the landline network or public switched telephone network (PSTN) when offering Internet access to their customers.

Qualcomm's integrated, single-platform solution for standardized data services operates in cellular, Personal Communications Services (PCS) and wireless local loop networks.

As the developer of CDMA, Qualcomm continues to demonstrate its expertise in maximizing the performance of CDMA technology across its infrastructure equipment, subscriber products and Application Specific Integrated Circuits (ASICs). As the developer of CDMA technology, Qualcomm continues to invest in research, development and standardization of new CDMA features and services, as well as enhanced digital wireless technologies.

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 CDMA wireless communications systems and products, the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services) 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 of the Company's products, 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, 1997 and most recent Form 10-Q.

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