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Pegaso Telecomunicaciones Consortium Welcomes New Partners as Plans Progress for Offering Nationwide CDMA Services in Mexico

– July 21, 1998 – Pegaso Telecomunicaciones, S.A. de C.V. has expanded its partnership for nationwide digital wireless network services and increased its equity commitments to US$400 million through the addition of four new consortium members Grupo Televisa (NYSE: TV), Citicorp Equity Capital Latin America, AIG-GE Capital Latin America Infrastructure Fund, and Nissho Iwai Corporation. The Pegaso Telecomunicaciones consortium was formed by Grupo Pegaso and Qualcomm Incorporated (NASDAQ: QCOM) to participate in Mexico's Personal Communications Services (PCS) auctions, and was subsequently awarded nine 1900 MHz licenses to provide nationwide mobile PCS and Wireless Local Loop (WLL) services throughout Mexico.

The new equity commitments will contribute to funding the deployment of a nationwide cdmaOne (IS-95 Code Division Multiple Access) network, including the cost of license acquisition, equipment purchases and operating expenses. In the coming months, the consortium expects to finalize agreements to secure additional funding through a combination of vendor financing, bank debt and high-yield debt.

Recently, GTE Corporation signed an agreement under which GTE will provide its expertise in deploying, launching, marketing and operating the nationwide network. GTE will immediately appoint technical and marketing managers responsible for aiding Pegaso in the network roll-out and the business plan.

In addition, the consortium awarded Qualcomm a contract to supply US$650 million in infrastructure equipment and related program management and deployment services, while Alcatel will provide microwave transmission equipment, switches and related deployment services. The consortium has begun the nationwide deployment and expects to offer commercial service in major cities in early 1999.

Grupo Televisa S.A. is the largest media company in the Spanish-speaking world, and a major player in the international entertainment business. It has interests in television, direct-to-home satellite services, publishing, audio, cable television, and an important range of complementary businesses. Grupo Televisa also has an unconsolidated equity stake in Univision, the leading Spanish-language television company in the United States.

Citicorp Equity Capital Latin America, a unit of Citicorp Securities, Inc., makes equity investments throughout Latin America, including Mexico, South and Central America and the Caribbean.

The AIG-GE Capital Latin American Infrastructure Fund, L.P. (LAIF) is the largest private equity fund operating exclusively in the Latin American region, with over US$1 billion of capital commitments from institutional investors.

Nissho Iwai Corporation is one of the world's largest trading companies (1997 total trading transactions of US$76.2 billion), with 154 offices outside of Japan that span over 78 countries. For more information about the Nissho Group of Companies, please visit our website at http://www.niac.com.

Grupo Pegaso is a private equity investment group mainly owned by Mr. Alejandro Burillo Azcarraga, one of the founders and a significant holder of Grupo Televisa; a joint venture with Qualcomm providing OmniTRACS(r) services (satellite-based digital two-way mobile satellite communications with GPS) to the Mexican trucking industry; regional cable companies; real estate; banking; and theme park and sports promotions.

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.

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Qualcomm, OmniTRACS and Eudora Pro are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services. cdmaOne is a trademark of the CDMA Development Group. All other company and product names are trademarks of their respective holders.

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