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Qualcomm Obtains Rights to Werner Enterprises' Paperless Log System

– July 01, 1998 – Qualcomm Incorporated (NASDAQ: QCOM), a leader in mobile communications for the transportation industry, today announced that it has obtained the intellectual property rights to the Paperless Log System, an automated electronic record-keeping application for drivers developed by Werner Enterprises (NASDAQ: WERN), one of the nation's five largest truckload transportation companies. Using data from Qualcomm's OmniTRACS® mobile information management system, the Paperless Log System was developed independently by Werner to improve driver compliance, promote safety, and reduce regulatory paperwork by substituting mobile-communications-based electronic records for the paper logbooks currently used to monitor truck drivers' hours of service.

On June 10, Werner Chairman Clarence L. Werner and the Federal Highway Administration (FHWA) signed an agreement that authorized Werner Enterprises to use the Paperless Log System as part of a two-year pilot project allowing motor carriers to voluntarily enter into agreements with the FHWA to use advanced technology to manage their drivers' compliance with the hours-of-service regulation. Instead of using a driver's handwritten records, the computerized logbook system automatically records a driver's hours and activities throughout the day on the OmniTRACS driver display unit located inside the truck. The information is transferred by the OmniTRACS system to Werner's dispatch computer system. The Department of Transportation can then request access to these records to verify workactivities to determine if drivers are in compliance with regulations.

Although Qualcomm has acquired the intellectual property rights inthe Paperless Log System, Werner has retained the right to continue to use and develop the application for its internal purposes. The Paperless Log System is designed to integrate with Werner's proprietary dispatch system and therefore can not be used by other motor carriers in its current form. Qualcomm will determine possible future commercialization of the application after further discussions with the FHWA and its customers.

"We are pleased to see how innovative our customers have become with incorporating our OmniTRACS technology with other applications," stated Phil White, senior vice president and general manager of Qualcomm's OmniTRACS Division. "Werner should be commended for their vision in using technology to further improve safety and driver satisfaction and we hope to eventually have the capabilities to offer the same innovation to our other customers."

Werner, an early adopter of the satellite-based OmniTRACS system and a Qualcomm customer since 1992, recently extended its contract to use the OmniTRACS system and other Qualcomm products, such as CabCARD®, to manage the performance of its fleet of trucks. Founded in 1956 by C. L. Werner, Werner Enterprises is a full-service transportation company providing truckload and other transportation services throughout the 48 contiguous states, the 10 provinces of Canada, and trailer services in and out of Mexico.

With over 230,000 OmniTRACS units sold worldwide, Qualcomm is the leading provider of mobile communications and information management systems to the transportation industry. Qualcomm currently has systems operating in the United States, Canada, Europe, Russia, Middle East,Brazil, Mexico, Japan, Korea and Malaysia.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based onits 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 the ability to structure the spin-off transaction to meet its publicly stated objectives and to accomplish the spin-off in atimely manner, the impact of the spin-off on Qualcomm's stock price, the ability of the management of the spin-off company to realize value for its stockholders, 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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Topics: Corporate
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