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Qualcomm and Asahi Kasei Microsystems Co., Ltd. Announce Extension of Letter of Agreement for cdmaOne Chipsets

– July 08, 1998 – Qualcomm Incorporated (NASDAQ: QCOM) today announced it has extended its Letter of Intent (LOI) with Asahi Kasei Microsystems (AKM) Co., Ltd. for two years to continue providing optimized chipsets for the CDMA market in Japan.

The new agreement now allows for a complementary chipset incorporating Qualcomm's newly developed MSM3000™, IFT3000™ and IFR3000™ chips and an AKM-developed Audio Interface/Voice Codec plus Phase-Locked Loop (PLL). The chipset will provide a complete Intermediate Frequency (IF) transmit and receive solution for next generation CDMA-only handsets.

"Our working partnership with AKM has been very successful for not only our companies, but also our customers who are benefiting from a world-class tri-mode CDMA, J-TACS, N-TACS chipset in present generation handsets. By combining our core strengths in CDMA technology and system-level chip design with advanced applications support capabilities, we are able to get optimized solutions quickly to market," said Donald Schrock, president of Qualcomm's ASIC Products Division.

The new AKM PLL/Codec device, known as AK2486, in combination with MSM3000, IFT/IFR3000 and an RF front-end enable design of very small handsets optimized for Japan CDMA frequency plans. In addition, the AK2486 and the IFT/IFR3000 devices use a specialized serial bus interface (SBI) control from the MSM3000 which provides enhanced capabilities for managing current consumption and extending handset stand-by time performance.

"We are pleased to extend our relationship with the cutting-edge producer of CDMA chipsets at a time when CDMA has established itself as a leading technology in Japan. The past two years have generated innovative designs and superior performance and results for our customers," said Yoshifumi Oshima, general manager of AKM's Communication Products. "AKM's low-power mixed signal expertise and Qualcomm's CDMA technology have proven to be a winning combination."

The announcement comes on the heels of recent announcements by Qualcomm of production quantity shipping of its MSM2310 chipset and sample shipping of its fifth-generation MSM3000 chipset. In conjunction with its announced licensing agreement for ARM software development tools, Qualcomm's chipsets remain the most advanced and highest performing on the market.

"As the second largest cellular market in the world, Japan remains a strategic market for Qualcomm, a market where consumers, service providers and manufacturers have quickly embraced CDMA technology," said Johan Lodenius, vice president of marketing for Qualcomm's ASIC Products Division. "This extension of our partnership allows us to retain our competitive advantage in this highly competitive region."

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, PC audio and digital audio/video applications and are based on AKM's unique CMOS mixed analog/digital technology.

Headquartered in San Diego, California, 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 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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